On the heels of sweeping reforms and legislative updates, Vietnam is poised for a major transformation in its public sector management and economic regulatory frameworks. Recent proposals and legislative amendments by the Ministry of Home Affairs and the Ministry of Finance signal a determined push toward greater transparency, efficiency, and modernization. As the country navigates the complexities of global economic integration and domestic restructuring, these changes are set to redefine how civil servants are evaluated and how prices are managed across the nation.
On August 18, 2025, the Ministry of Home Affairs unveiled a draft decree proposing a new formula for evaluating and classifying the quality of civil servants, grounded in Key Performance Indicators (KPIs). According to reporting from CafeF, this initiative aims to blend qualitative and quantitative criteria, ensuring that assessments are democratic, fair, accurate, and transparent. The ministry is adamant that the new system will prevent favoritism, oppression, or bias—an issue that has long drawn criticism in public sector evaluations.
The proposed KPI-based evaluation is scheduled to take effect on January 1, 2026. It emphasizes measuring output results and leverages scientific technology for ongoing monitoring and classification. As Minister of Home Affairs Phạm Thị Thanh Trà explained, "The evaluation of civil servants is based on specific criteria related to the results of task performance according to the products or work of each job position." The system will utilize software to ensure objectivity and accuracy in tracking performance, providing a solid foundation for decisions regarding placement, utilization, rewards, and even the filtering of the civil servant workforce.
Importantly, the results of these evaluations will also serve as a basis for linked assessments and classifications of Communist Party members, reinforcing the interconnectedness of government and party accountability. The draft decree introduces a scoring formula that assigns 30% weight to general qualitative criteria and 70% to KPI-based quantitative outcomes, underscoring the importance of actual task performance. The evaluation method itself is rooted in two principles: quantifying service products (each product or task is standardized based on volume, complexity, progress, and technical requirements) and assessing along three axes—quantity, quality, and progress.
Minister Trà emphasized that this approach will help restructure and enhance the quality of a professional, responsible, dynamic, and creative civil servant workforce. The ultimate goal? To better serve citizens and businesses and to drive national development. The process is designed to be public, transparent, and consistent, combining both qualitative and quantitative indicators, and making full use of digital transformation and technological advances.
The draft decree also clarifies the responsibilities of management agencies and the heads of departments in assigning, monitoring, evaluating, and handling the performance of civil servants. Agencies are expected to issue their own sets of criteria and classification lists tailored to practical realities, as well as to maintain a robust framework for tracking and rewarding performance. The decree supports the implementation of the 2025 Law on Cadres and Civil Servants, furthering the agenda of decentralization and classification within Vietnam’s public administration.
Meanwhile, on the economic front, the Ministry of Finance is advancing its own set of reforms. As reported by the Ministry’s official portal, the National Assembly passed the new Price Law (16/2023/QH15) on June 19, 2023, which came into effect on July 1, 2024. This law replaces the previous Price Law (11/2012/QH13) and is widely regarded as a milestone in the evolution of Vietnam’s economic legal framework. The 2023 Price Law provides a comprehensive foundation for price management and administration, championing a market-based approach with state oversight. It aims to harmonize the interests of businesses, citizens, and the state, all while contributing to inflation control, macroeconomic stability, sustainable development, and green growth.
Recognizing the need to address emerging practical issues and eliminate legal bottlenecks, the Ministry of Finance has drafted amendments and supplements to certain articles of the 2023 Price Law. One of the key changes involves the process of price stabilization. The law now clearly delineates the authority of the government, ministries, and provincial People's Committees in organizing price stabilization efforts. In situations of emergency, disaster, epidemic, or abnormal market fluctuations, management departments are required to advise the Department of Finance, which in turn proposes decisions to the provincial People's Committee.
These amendments are in direct response to government resolution 203/2025/QH15, passed on June 16, 2025, which mandates the dissolution of district-level administrative units nationwide effective July 1, 2025. In line with this restructuring, the Ministry of Finance has proposed transferring price stabilization responsibilities from district-level to commune-level People's Committees. This move ensures continuity and clarity in price management, especially as Vietnam further streamlines its administrative apparatus.
Furthermore, the amendments are designed to comply with Article 54 of the 2025 Law on Local Government Organization, which requires that all legal documents related to local government structure be updated by March 1, 2027. The Ministry of Finance’s proposals also address the need for coherence with the broader legal system, especially as it pertains to inspection and supervision. Following the Central Party Committee’s conclusion on March 28, 2025, to streamline the inspection apparatus into two levels (central and local), the Ministry has suggested amendments to ensure that the Price Law aligns with the new structure, including the reorganization of inspection agencies and the transfer of functions to the Government Inspectorate.
Another significant area of reform concerns the business conditions for price appraisal services. Drawing on directives from the Politburo and government resolutions aimed at fostering a transparent, safe, and low-compliance-cost business environment, the Ministry of Finance has proposed eliminating certain requirements—such as the need for full civil act capacity and specific business registration conditions for price appraisal enterprises. The aim is to reduce administrative barriers and simplify procedures, making the legal environment more conducive to business and investment.
In addition, the Ministry has suggested updating the names and titles of government agencies and officials in the Price Law to reflect recent organizational changes, as mandated by National Assembly resolution 176/2025/QH15. This attention to detail ensures that the law remains current and unambiguous as Vietnam’s public sector continues its evolution.
As these legislative proposals and amendments move forward, Vietnam stands at a crossroads of administrative and economic reform. The coordinated efforts of the Ministry of Home Affairs and the Ministry of Finance reflect a broader commitment to modernization and good governance. While the road ahead may present challenges—especially as new systems are implemented and old habits are reformed—the trajectory is clear: a more transparent, efficient, and accountable government, ready to meet the demands of a rapidly changing world.
With these changes, Vietnam is not just updating its laws—it’s redefining the standards for public service and economic management, setting the stage for a new era of growth and governance.
