Vietnam’s Party Central Committee has approved a significant administrative restructuring plan to reduce the number of provinces and cities from 63 to 34. This consolidation aims to streamline governance, enhance administrative efficiency, and improve public service delivery. The restructuring will result in six centrally governed cities and 28 provinces, marking a substantial shift in the country’s administrative framework.
The plan also includes merging several ministries to reduce government bodies by up to 20%. Key mergers involve combining the Ministry of Planning and Investment with the Ministry of Finance, and the Ministry of Transport with the Ministry of Construction. These changes are intended to cut costs and enhance administrative efficiency without affecting project approvals. Deputy Prime Minister Nguyen Hoa Binh emphasized the need for competence among state officials, noting that poor performance will no longer be tolerated.
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Context & Background
Vietnam’s administrative structure has remained largely unchanged since the country’s reunification in 1975. The current system comprises 63 provinces and cities, each with its own local government apparatus. Over the years, this structure has been criticized for inefficiencies, overlapping responsibilities, and bureaucratic red tape, prompting calls for reform to better align with the nation’s rapid economic growth and development goals.
The recent restructuring plan is part of a broader effort to modernize Vietnam’s governance. In addition to reducing the number of administrative units, the government has proposed merging several ministries to streamline operations and reduce costs. For instance, the Ministry of Planning and Investment is set to merge with the Ministry of Finance, and the Ministry of Transport will combine with the Ministry of Construction. These changes aim to enhance administrative efficiency and improve public service delivery.
While the restructuring is expected to lead to a more efficient government, it also raises concerns about potential short-term disruptions, particularly regarding project approvals and investment procedures. However, the government has assured that the core functions of state management will remain consistent, and the restructuring will not impact the implementation of investment procedures in Vietnam.
In This Story
Vietnam’s Party Central Committee
The highest decision-making body of the Communist Party of Vietnam, responsible for setting policies and guiding the country’s political and economic direction.
Nguyen Hoa Binh
Deputy Prime Minister of Vietnam, overseeing administrative reforms and emphasizing the need for competence among state officials.
Pham Minh Chinh
Prime Minister of Vietnam, leading the government’s efforts in administrative restructuring and modernization.
