Today : Jul 09, 2025
Politics
09 July 2025

Vietnam Advances Local Governance And AI Adaptation

Vietnam’s administrative overhaul streamlines governance while local AI solutions excel amid digital and cultural shifts in 2025

Starting July 1, 2025, Vietnam embarked on a sweeping administrative overhaul, consolidating its local government structure from 63 to 34 provinces and abolishing district-level administrations in favor of a streamlined two-tier system consisting of provincial and commune/ward levels. This bold reorganization, aimed at improving governance efficiency and public service delivery, has already begun to show promising results across the nation, particularly in provinces like Phu Tho and Vinh Phuc.

In Phu Tho province, the newly merged departments, agencies, and 148 communes and wards have swiftly stabilized their organizational structures within the first week of operation. According to local reports, administrative procedures are flowing smoothly without interruption, a testament to the careful planning and execution behind the reforms. Nearly 280 administrative procedures have been decentralized to the commune level, spanning critical sectors such as agriculture, environment, industry, trade, health, and construction. These services are now accessible through a one-stop mechanism at both provincial and commune Public Administration Service Centers, as well as the National Public Service Portal, simplifying interactions for citizens and businesses alike.

A striking example of the reform’s impact can be seen in the newly established Dao Tru commune in Vinh Phuc province. Formed by merging the former Dao Tru and Yen Duong communes in Tam Dao district, Dao Tru now serves over 24,700 residents, 73% of whom belong to ethnic minority groups. The commune’s Public Administration Service Center is conveniently located at the former Dao Tru People’s Committee office, dramatically reducing travel distances for residents from remote villages such as Dong Qua and Vinh Ninh. Where once they had to travel over 17 kilometers to the district reception office, they now only need to journey 3 to 4 kilometers to access essential administrative services.

At the Tam Duong commune Public Administration Service Center, a dedicated team of 10 staff members, all university-educated or higher, has been handling a steady stream of 20 to 30 daily visits from citizens, organizations, and businesses during the initial week of operation. Such demand underscores the community’s eagerness to engage with the new system. Phu Tho’s Employment Service Center, under the Department of Internal Affairs, has also been bustling, primarily assisting workers applying for unemployment benefits and seeking job information. The center has collaborated closely with VNPT Vinh Phuc to establish a hotline and independent digital accounts, ensuring that administrative procedures related to employment are processed swiftly, even as internal workflows and staff authorizations are still being finalized.

These efforts have yielded impressive results: in just the first week, hundreds of unemployment benefit applications were received, thousands sought job information, and nearly 500 workers were counseled and referred for employment opportunities. Officials emphasize that while initial adjustments posed challenges, the long-term benefits include enhanced service efficiency and better responsiveness to the public’s needs. As one local official noted, the core mission of grassroots government is to be close to the people, understanding their living conditions and promptly addressing practical issues.

Meanwhile, the administrative reshuffle has posed unique challenges for artificial intelligence (AI) systems, particularly those developed outside Vietnam. The sudden changes in provincial and local boundaries, along with the abolition of district-level units, have led to outdated or conflicting data in many foreign AI chatbots, diminishing their accuracy in handling local queries. For instance, some foreign models mistakenly associate Hanoi’s Trung Hoa ward with the wrong district, reflecting their reliance on pre-reform data.

In contrast, Vietnamese-developed AI applications have demonstrated a significant edge in adapting to these changes. Viettel’s AI assistant, built on a large Vietnamese language model and integrated with official legal documents about the administrative reorganization, offers users accurate, up-to-date answers and even displays maps for verification. Although it occasionally lacks complete information at the ward level, its ability to cross-reference authoritative sources provides a valuable tool for citizens navigating the new administrative landscape.

Similarly, AI Hay, a product of a Vietnamese startup, excels in tracing new addresses from old ones, a critical feature given that some roads and wards have been split or merged. The application’s developers highlight their deep understanding of Vietnamese cultural context and linguistic nuances as key advantages over foreign competitors. Dr. Nguyen Tho Chuong, AI Hay’s Chief Technology Officer, remarked, “This is a clear example of adaptability to new knowledge, and only local models can quickly adjust and provide quality answers.”

Despite these strengths, foreign AI models still hold superiority in areas like complex reasoning, computational tasks, and programming, thanks to their larger scale and extensive data resources. Vietnamese AI solutions, however, are carving out a niche by focusing on practical applications that directly impact daily life, including education support, work utilities, information retrieval, and entertainment.

Beyond governance and technology, the second quarter of 2025 saw dynamic shifts in Vietnamese online search behavior, as revealed in Cốc Cốc’s latest search trend report. The public’s keen interest in the administrative mergers was reflected in a 100% surge in searches for “province merger” and a 172% rise for “new administrative map.” These figures highlight a proactive citizenry eager to understand and adapt to the new territorial realities.

The 50th anniversary of the Liberation of Southern Vietnam and National Reunification on April 30, 2025, also stirred widespread attention, particularly among younger generations. Searches related to “parades” skyrocketed by over 4,000%, with Gen Z users infusing the event with fresh cultural expressions. Terms like “summer break bloc” and “retirement bloc” emerged from military parade jargon, quickly becoming viral memes that humorously contrast youthful energy with peaceful retirement.

Concerns about product quality were another hot topic, with search terms linked to counterfeit goods—such as fake cooking oil and questionable snacks—jumping by 560%. Natural disaster risks also captured public attention, as keywords related to Typhoon Wutip and the Myanmar earthquake surged, indicating heightened vigilance.

On the technological front, specialized AI tools like Leonardo AI and Pixverse AI gained traction for their creative capabilities, while the temporary outage of ChatGPT led to a 133% spike in related searches, underscoring growing dependency on AI services. The ban on Telegram in Vietnam triggered an 810% increase in searches for alternative platforms, notably the domestic social network Lotus, reflecting users’ preference for trustworthy, law-compliant digital spaces.

Financial awareness was similarly on the rise. Searches for new tax policies and regulations, including tax arrears, VAT reductions, and personal identification number usage, surged significantly. Notably, the implementation of Decree 117/2025/ND-CP on July 1, requiring e-commerce platforms to withhold and remit taxes on behalf of sellers, sparked a 41% increase in related queries. The public and businesses alike are actively engaging with these changes to ensure compliance and transparency.

Vietnam’s administrative reforms and the evolving digital landscape present a fascinating picture of a nation in transition—embracing modernization while navigating the complexities of change. The synergy between government restructuring, technological innovation, and an informed, participatory populace offers a promising path forward, one where efficiency, accessibility, and cultural identity coexist and thrive.