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24 February 2025

Vietnam Undertakes Major Administrative Restructuring

Government efforts focus on consolidations to improve efficiency across administrative levels.

The Vietnamese government is undergoing significant changes as it implements extensive administrative restructuring aimed at reducing the number of administrative units and enhancing operational efficiency. According to various reports, the restructuring is guided by Resolution 190/2025/QH15, which sets the framework for addressing any issues arising from the reorganization of state agencies.

This resolution mandates the Prime Minister, along with the Chief Justice of the Supreme People's Court and the Chief Prosecutor of the Supreme People's Procuracy, to regularly report to the National Assembly about the administrative restructuring process. These reports will include guidelines on handling disputes within state apparatus adjustments, ensuring every authority involved acts within its jurisdiction.

Between 2023 and 2025, Vietnam is set to continue the merging of administrative units at both the district and commune levels across 51 provinces and cities. This includes 25 districts where some are exempt due to specific local characteristics, as specified by the Standing Committee of the National Assembly. The total number of districts has dropped to 696 after this recent integration effort, indicative of the governing body's drive to achieve a more streamlined administrative framework.

The restructuring initiative has also seen significant changes at the commune level, with the total number of communes decreasing from 10,598 to 10,035, reflecting the government's commitment to simplification. A total of 1,228 communes are under review for reassignment, with 664 of these actively undergoing restructuring.

These changes are not without their challenges. Various districts and communes have yet to meet the required standards concerning area and population, raising concerns about their operational viability post-restructuring. For example, two of the 29 newly formed districts do not meet the minimum regulations set forth by national guidelines.

With the completion of this assimilation, Vietnam's Ministry of Home Affairs is following through with its commitment to improving fiscal responsibility and eliminating waste within its operations. This includes regular checks across significant sectors such as land management and public finance, aiming to reinforce accountability within the administrative system.

Deputy Minister Cao Huy has emphasized the importance of developing comprehensive strategies for the period from 2026 to 2030. This involves preparing clearly defined plans to finalize arrangements for any administrative units not yet aligned with established standards. Alphabetical units will be prioritized for restructuring, ensuring they comply with expectations set forth by previous national resolutions.

Notably, the Ministry of Home Affairs is striving to assist and guide 51 provincial governments during this transition. Specific attention is directed toward ensuring seamless operations during the restructuring process, which is fundamental to maintaining governance continuity and preventing disruptions.

Implementation of the new advisory program includes stringent measures to prevent unnecessary delays or omissions during these reconfigurations. The legislative framework aims to facilitate these adjustments effectively by emphasizing transparency and clarity between different administrative levels.

Despite these advancements, the reform policy seeks to eliminate redundancies by expecting considerable reductions within the number of civil servants engaged within government structures. The Ministry aims for at least 20% reduction of personnel within management roles reflects the overarching goal of refining governmental functions. This top-down approach is part of the wider push for reduced administrative bloat, aiming for enhanced service delivery to the populace.

The Ministry of Home Affairs is also actively working to rejuvenate operational guidelines governing public employees, ensuring they are adequately equipped to comply with the newly redefined administrative structures. Policies will be refined to create more pragmatic frameworks supporting employees through the transition as roles and responsibilities shift.

Financial controls have been tightened to maximize resource utilization efficiently. This means monitoring expenditure patterns to align with the government’s broader economic strategy. This focus on reducing operating costs includes savings through specific prescribed percentages, targeting inefficiencies associated with surplus allocations.

Supportive measures from the national government remain integral to achieving the envisaged transformations. Enforcement of policies directed at curbing waste and tightening financial governance is seen as pivotal to establishing order within public service sectors, setting expectations for high standards.

Citizens are likely to feel the impacts of these restructuring efforts, whether through enhanced local governance practices or challenges associated with adjusting to new administrative realities. The government is anticipated to continue monitoring these adjustments closely, ready to adapt as necessary based on public feedback and on-ground realities.

This resounding commitment to restructuring signifies Vietnam's dedication to modernizing its administrative frameworks, setting the stage for enhanced governance well-aligned with contemporary needs. The government is focused not merely on reducing numbers but rather on fostering quality and efficiency, supporting citizens and local structures as expediently as possible.