In a significant restructuring effort, Vietnam is undergoing a major administrative overhaul that will see the merger of several provinces and the reorganization of local governance. The Politburo and the Secretariat convened a national conference on April 16, 2025, to discuss the implementation of the resolutions from the 11th Central Committee Meeting, which aims to streamline the administrative framework of the country.
As part of this initiative, the Central Steering Committee for summarizing Resolution No. 18-NQ/TW issued Plan No. 47 on April 14, 2025, detailing the rearrangement and merger of administrative units at both the provincial and commune levels. This plan also outlines the establishment of a two-level local government system, which is expected to enhance governance efficiency and effectiveness.
Deputy Prime Minister Nguyen Hoa Binh signed two important decisions on the same day: Decision No. 758/QD-TTg, which outlines the plan for the rearrangement of administrative units, and Decision No. 759/QD-TTg, which approves the project for reorganizing these units. The project specifies the rearrangement plan for 52 provincial-level administrative units, aiming to reduce redundancy and improve service delivery.
During the conference, General Secretary To Lam emphasized the importance of balancing the size of merged units. He cautioned against merging communes and wards that are too large, which could hinder effective management and service delivery, as well as merging those that are too small, which could create inefficiencies and limit development potential.
In a tangible move towards this goal, Ho Chi Minh City’s People's Council approved a plan on April 18, 2025, to consolidate 273 commune-level administrative units into 102 new entities, comprising 78 wards and 24 communes. This action aligns with the Central Government's target of reducing administrative units by 60-70%.
Similarly, the Soc Trang Provincial People's Council ratified a resolution on April 20, 2025, to reduce the number of grassroots administrative units to 43, which includes 35 communes and 8 wards. This restructuring represents a 60.19% reduction from current figures, further demonstrating the government's commitment to administrative efficiency.
Moreover, discussions in Soc Trang also included plans to establish Can Tho City as a direct provincial-level administrative unit, merging it with the administrative units of Soc Trang and Hau Giang provinces. The new administrative center will be located in Ninh Kieu district of Can Tho City.
Meanwhile, the Hanoi People's Committee announced a similar initiative on April 20, 2025, which will see the number of wards and communes reduced from 526 to 126, streamlining governance in the capital. This restructuring is part of a broader trend across various provinces, with Bac Ninh also initiating public consultations on the rearrangement of administrative units.
In Lam Dong province, over 323,000 voters are being consulted regarding the proposed merger of Lam Dong, Binh Thuan, and Dak Nong provinces into a new administrative entity, also named Lam Dong. This move is part of the government's strategy to create more cohesive and manageable administrative units.
Tuong Duong district, known as the largest district in Vietnam, is also undergoing significant changes. It shares a 57.93 km border with Laos and currently consists of 17 communes. After the planned rearrangement, the district will be reduced to 9 communes, which will be named sequentially from Tuong Duong 1 to Tuong Duong 9. The local government emphasizes that despite its large area, the population is sparse, necessitating this restructuring to improve governance and service delivery.
As part of this administrative overhaul, local leaders are optimistic that the new structure will foster economic development and improve public services. The focus is on creating a more integrated and efficient governance model that can better serve the needs of the population.
In addition to these changes, the stock market has shown signs of growth, with a reported increase of 3.16% in the first quarter of 2025 compared to the end of 2024. This economic growth may provide a supportive backdrop for the ongoing administrative reforms.
Overall, these initiatives reflect a concerted effort by the Vietnamese government to modernize its administrative framework, improve local governance, and enhance the quality of public services. As provinces prepare for these changes, the focus remains on ensuring that the restructuring benefits the citizens and promotes sustainable development.
