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Politics
17 March 2025

Vietnam Restructures Government To Cut Administrative Units

Government aims to streamline operations and boost local autonomy through significant reforms.

The Vietnamese government is embarking on a significant administration overhaul aimed at enhancing efficiency and responsiveness to local needs. Prime Minister Pham Minh Chinh recently underscored the importance of reorganizing the country’s administrative units, announcing plans to establish a streamlined two-level government system to report to the Politburo.

Following this initiative, the number of provincial-level units will shrink by nearly 50%, and grassroots administrative units are expected to reduce by more than 70%. Currently, Vietnam has about 10,035 commune-level administrative units, which are projected to consolidate down to about 2,000. This restructuring is viewed as not just necessary, but urgent to promote local autonomy and responsive governance.

The project, which was discussed at the first meeting of the Steering Committee on March 13, 2025, reflects the government’s ambition to reorganize its administrative framework. “The restructuring and reorganization of administrative units aim to make the local government more efficient and closer to the people,” commented Prime Minister Pham Minh Chinh via the Government Portal.

Under this new plan, roughly one third of the responsibilities currently held by district administrations will shift up to provincial authorities, with approximately two-thirds transitioning down to local commune levels. This allocation aims to tailor governance practices to local contexts, ensuring historical and cultural factors are aptly recognized.

Notably, the government is employing criteria related to geography, economy, and social history to guide the naming and organization of these new administrative divisions. Areas will not only be assessed based on administrative efficiency but also on factors influencing local development, competitiveness, and connecting infrastructure.

“This is urgent work requiring the highest commitment and resolute action from the entire political system,” reaffirmed Vũ Đại Thắng, the Secretary of the Quang Ninh Provincial Party Committee, during the recent Steering Committee meeting. Authorities, including the local leadership, are expected to coordinate closely to implement these transformations effectively and continuously monitor their impact.

Further, the Politburo has recently issued Conclusion 128-KL/TW, which enforces the temporary suspension of recruitment, appointments, and nominations for leadership positions amid the transition process. This pause is aimed at stabilizing the environment during this significant administrative change.

The Ministry of Home Affairs is actively engaged, having finalized proposals to amend Decree 178/2024/ND-CP, which lays out strategies for the arrangement and policy guidance relevant to public servants and civil management during the transition. “Recruitment and appointment of leaders will be suspended during this restructuring period,” officials confirmed at the latest government press conference.

Although change can often lead to uncertainty, local initiatives are underway to reshape this restructuring as more of an opportunity than just downsizing. One city leading such efforts is Ho Chi Minh City, where support policies have embraced redundancy as the foundation for new paths forward for displaced staff.

Ho Chi Minh City has mobilized state-owned enterprises to create job opportunities, prioritizing experienced workers and facilitating transition programs for those migrating out of the public sector. Such adaptations include specialized training sessions and career counseling meant to assist staff with skill adjustments needed for the private sector.

These support mechanisms aim to minimize the psychological impact on workers affected by the changes. With encouragement from local government, former public sector employees are encouraged to venture out and explore new careers, even launching startups based on personal passions and ideas.

“Our goal is clear: to support redundant staff not just to find new jobs, but to help them recognize their value and contribution to society,” reiterated officials from the Ho Chi Minh City government. Current programs are not limited to training but also include job fairs connecting workers with potential employers.

This proactive approach emphasizes the notion of public service not concluding with job loss, but rather transforming to engage staff members elsewhere within the community’s fabric.

The experiences being cultivated in Ho Chi Minh City could serve as valuable lessons to other regions as Vietnam embarks on its broader restructuring agenda. The idea of reduction and efficiency is not simply about cutting down personnel but is, instead, about fostering new growth and adaptability within the public workforce.

Realigning government structures carries challenges; yet, it also reframes the narrative around labor force transitions, proposing pathways for previous public servants to contribute effectively to their communities. With backing from government initiatives and community support, the future shapes toward enhanced adaptability, innovation, and growth.

All stakeholders involved, from the central government to local workers, aim for transformational change. It is clear: Vietnam’s administrative artillery stands ready to not just simplify governance but also galvanize continuous development opportunities for those previously embedded within its structure.