Vietnam’s Ambitious Plan to Merge Provinces and Cut Bureaucracy
Background: Bureaucratic Reforms
The Vietnamese government has been implementing a series of cost-cutting measures to reduce the state budget. This drive has already seen the number of government ministries and agencies reduced from 30 to 22, and one in five public sector jobs will be cut over the next five years.
Merging Provinces and Eliminating District-Level Authorities
Prime Minister Pham Minh Chinh has announced that a "key and urgent task" is to complete the rearrangement of "administrative boundaries… merging some provinces… and cutting off the district level." State media reports that the merging of provinces is scheduled for 2025, aimed at "streamlining the apparatus and improving the quality, efficiency, and effective distribution of resources."
Current Administrative Structure
Communist-ruled Vietnam is currently divided into 63 major cities and provinces, under which there are around 700 administrative units at the district level and more than 10,000 at the communal level. Almost two million people worked in the public sector as of 2022, according to the government.
Impact on Public Sector
The government has announced that 100,000 people will be made redundant or offered early retirement as part of the bureaucratic reforms. It is unclear if there will be further job cuts as part of the provincial mergers, or which provinces will be affected.
Reactions and Concerns
Top leader To Lam has emphasized that state agencies should not be "safe havens for weak officials." However, there are fears that the bureaucratic reforms could cause short-term chaos, with reports of logjams in provincial offices as administrative procedures slow. The foreign ministry has denied any impact on the investment and business environment.
Conclusion
Vietnam’s plan to merge provinces and eliminate district-level authorities is a bold move aimed at streamlining the government and reducing costs. While it remains to be seen how the reform will unfold, the government’s commitment to reducing bureaucracy and increasing efficiency is a step in the right direction.
Frequently Asked Questions
- What is the purpose of the provincial mergers?
The mergers aim to streamline the government and reduce costs by eliminating district-level authorities and improving the quality, efficiency, and effective distribution of resources. - How many people will be affected by the reforms?
Almost two million people work in the public sector, and 100,000 will be made redundant or offered early retirement. It is unclear if there will be further job cuts as part of the provincial mergers. - What is the timeline for the mergers?
The merging of provinces is scheduled for 2025. - What is the impact on the investment and business environment?
The foreign ministry has denied any impact on the investment and business environment, but there are concerns about short-term chaos due to logjams in provincial offices.