Vietnam's Government is accelerating a sweeping administrative reform and digital transformation initiative, underscored by the recent issuance of Resolution No. 162/NQ-CP in May 2025 and Decree No. 118/2025/ND-CP in June 2025. These landmark policies aim to reorganize local government structures, bolster public service efficiency through one-stop-shop mechanisms, and ignite economic growth through targeted credit programs and innovation-driven development.
At the heart of this reform is the urgent implementation of administrative unit rearrangement and the establishment of two-level local governments, a structural overhaul designed to streamline governance and enhance service delivery. According to the Government’s directive, new commune-level administrative units are to be operational by July 1, 2025, with provincial-level units following by August 15, 2025. This ambitious timeline reflects the administration’s determination to modernize public administration without delay.
To underpin this transformation, the Government has launched a substantial credit program amounting to 500,000 billion Vietnamese dong. This fund targets infrastructure investment, digital technology adoption, and social housing loans for individuals under 35 years old, signaling a robust commitment to fostering a digital economy and addressing pressing social needs.
Prime Minister and government leaders have mandated ministries, agencies, and provincial People's Committees to rigorously implement a series of resolutions and directives, including Resolution No. 154/NQ-CP dated May 31, 2025, which emphasizes economic growth targets of at least 8% for the second quarter and the year overall. Additionally, the Government is focused on advancing science, technology, innovation, and national digital transformation, as outlined in Resolution No. 57-NQ/TW from December 2024 and Government Resolution No. 71/NQ-CP from April 2025.
In June 2025, ministries are expected to finalize plans to realize Resolution No. 138/NQ-CP regarding private economic development, ensuring a synchronized and unified approach across governmental programs. The Ministry of Justice is tasked with expediting the submission of guiding documents for Resolution No. 197/2025/QH15, which introduces special mechanisms to invigorate law-making and enforcement processes.
Fiscal discipline remains a priority, with the Ministry of Finance enhancing state budget revenue management, expanding revenue streams particularly from e-commerce and food and beverage services, and completing the digitalization of invoicing systems by mid-2025. The State Bank of Vietnam is proactively managing monetary policy, exchange rates, and interest rates, aiming to stabilize financial markets and reduce lending rates in line with government directives.
Key export sectors such as aquaculture, wood products, and electronics receive focused support to resolve import-export regulatory challenges, ensuring Vietnam's competitive edge in global markets. Concurrently, the Government is committed to completing the legal framework for decentralization and local government organization, with 28 decrees on delegation of authority and administrative procedures slated for submission by June 13, 2025. To facilitate this, nationwide training will be conducted to guide officials on the new organizational structures and operational protocols.
Innovative tools are also in development. The Ministry of Science and Technology is spearheading the creation of a data system and artificial intelligence assistant to aid public officials and citizens in navigating administrative reforms smoothly.
Public investment is receiving a significant push, with accelerated disbursement of funds and implementation of three national target programs. The Government emphasizes monthly progress reviews, especially for key projects that serve as growth engines for the country, regions, and localities. Flexibility in reallocating funds from slow-moving projects to those with higher demand is part of this dynamic approach.
In the agricultural sector, the State Bank of Vietnam is overseeing a loan program supporting high-quality, low-emission rice production in the Mekong Delta, aligned with Decision No. 1490/QD-TTg from November 2023. The Ministry of Agriculture and Rural Development complements this by safeguarding national food security, boosting agricultural exports, and managing strategic rice reserves. Efforts to diversify export markets and strengthen sustainable trade relations continue alongside a nationwide crackdown on smuggling, commercial fraud, and intellectual property violations, running from May 15 to June 15, 2025.
Decree No. 118/2025/ND-CP, effective July 1, 2025, establishes a comprehensive one-stop-shop mechanism for administrative procedures, enhancing accessibility and efficiency. This decree mandates the creation of One-Stop-Shop Departments at the ministerial level and Public Administration Service Centers at both provincial and commune levels. The structure is flexible to accommodate specific operational contexts, such as the Ministries of National Defense and Public Security, which will tailor implementation to their unique needs, and the Ministry of Foreign Affairs, which will apply the mechanism at diplomatic missions abroad.
The provincial-level Public Administration Service Centers will operate as administrative units under the provincial People's Committee office, equipped with independent seals and accounts. In cities directly under central government control, a single-level Public Administration Service Center model may be adopted to better manage urban complexities and leverage digital transformation achievements. At the commune level, People's Committees will establish similar centers, deciding on the placement of reception and results return points based on local conditions.
To support administrative efficiency, ministries and local authorities may engage public postal service providers or other service enterprises to assist with dossier guidance, digitization, and result delivery, ensuring convenience for citizens and organizations.
The One-Stop-Shop Departments are responsible for transparently publicizing administrative procedures, guiding applicants, verifying dossier completeness, digitizing and forwarding documents to competent authorities, and returning results promptly. They are also empowered to collect fees and refuse non-compliant dossiers. Coordination with relevant agencies ensures that urgent procedures can be resolved within the same day when authorized.
Importantly, these centers will accept administrative procedures regardless of administrative boundaries within provinces, covering procedures under the jurisdiction of local People's Committees, their chairpersons, specialized agencies, and central agencies operating locally. Citizens and organizations can submit and receive documents directly at these centers, via public postal services, or through the National Public Service Portal, reflecting a multi-channel approach to service delivery.
Provincial and city People's Committees have been tasked with ensuring the smooth, continuous, and effective operation of the new administrative apparatus without interruption or territorial gaps. This is vital to maintain normal operations in public investment, land management, urban planning, and construction during the transition.
Furthermore, local authorities are instructed to strengthen market and price controls for accommodation, food and beverage services, and food safety, especially in key tourism areas. Border provinces such as Lang Son, Lao Cai, Quang Ninh, Cao Bang, Ha Giang, Dien Bien, and Lai Chau are under special directives to monitor goods circulation and agricultural exports at border gates to prevent congestion and ensure smooth trade flows.
Social welfare policies remain a cornerstone of the Government’s agenda. The ongoing national movement to eliminate temporary and dilapidated housing continues in 2025, reflecting a commitment to improving living standards. The Ministry of Health is enhancing healthcare quality, patient satisfaction, and safety, while investing in preventive and grassroots healthcare infrastructure.
To support these reforms, the Ministry of Home Affairs monitors personnel changes among civil servants and public employees, coordinating with the Ministry of Finance to resolve benefits and policies during organizational restructuring, ensuring retention of skilled staff.
Effective communication is emphasized to build social consensus, counter misinformation, and highlight successful initiatives across sectors. Media and government agencies are mobilized to disseminate information about administrative rearrangements, significant national events such as the 9th Session of the 15th National Assembly, and to foster a spirit of patriotism and dedication.
In sum, Vietnam’s Government is orchestrating a comprehensive reform agenda that intertwines administrative restructuring, digital innovation, fiscal prudence, and social welfare enhancement. The coordinated efforts across ministries, agencies, and local governments aim to propel the country toward sustainable growth, efficient governance, and improved quality of life for its citizens.
