In an unprecedented move to streamline government operations and cut public expenditure, Vietnam’s National Assembly on 12 June approved plans to reduce the number of provinces and cities from 63 to 34, resulting in the elimination of nearly 80,000 state positions.
The reform, hailed by officials as the most comprehensive administrative restructuring since the country’s founding in 1945, is part of a broader effort by the government to modernise governance and deliver what it calls “fast, stable and sustainable development.” The vote saw overwhelming approval with 461 in favour, just one opposing and three abstentions.
This restructuring follows an earlier reform in February, which reduced the number of ministries and agencies from 30 to 22 and led to 23,000 job cuts. Together, the initiatives mark a significant shift in the structure and culture of public administration in the communist nation, where state employment has traditionally been considered secure and lifelong.
Interior Minister Pham Thi Thanh Tra described the reform as a “revolution”, revealing that 79,339 officials will be affected—either retiring early or exiting public service. While the government has promised compensation, some long-serving officials expressed personal dismay at the abrupt end to their careers.
One provincial officer, speaking anonymously, said he was “shocked and sad” to be leaving after more than three decades in the role. “I may receive some billion dong in compensation, but I am not happy,” he said, referring to a severance package of approximately US$38,000. “I don’t know what to do now, though I am still completely fit for work.”
Among the broader population, reactions were mixed. While some supported the reforms for the promise of more efficient governance, others mourned the loss of regional identities. Nguyen Thang Loi, 52, from the soon-to-be merged Thai Binh province, said: “I fully support the decision, but it feels strange to say I now come from Hung Yen.”
Communist Party General Secretary To Lam, the country’s most powerful political figure, emphasised the reform’s intent to reposition administrative bodies from “passive management to active service to the people.”
The new leadership structures for the reconfigured provinces and cities will be announced by 30 June, with full operations scheduled to begin from July. Concurrently, the National Assembly is expected to pass a revised national constitution that will see the elimination of the district-level administration and the expansion of commune-level governance, reducing the existing three-tier administrative framework to two levels.
The sweeping reforms come amid broader efforts to combat corruption and improve governance. Vietnam’s high-profile anti-graft campaign, dubbed the “blazing furnace,” has ensnared numerous senior officials since 2021, including two former presidents and three deputy prime ministers.
Vietnam remains a key global manufacturing hub and posted 7.1 per cent GDP growth in 2024. It is targeting 8 per cent growth in 2025 as part of its long-term goal to reach middle-income country status by 2030. However, this growth trajectory faces external risks, including a threatened 46 per cent tariff on Vietnamese goods by the United States, prompting urgent trade negotiations.
The reforms mark a dramatic shift from Vietnam’s traditionally cautious approach to political change, which has favoured stability to maintain investor confidence. The scale and speed of implementation under General Secretary Lam suggest a new phase of governance that prioritises structural efficiency, national competitiveness, and long-term economic ambition.
-AFP
