Vietnam_Approves_Major_Provincial_Merger_to_Streamline_Governance

Vietnam Approves Major Provincial Merger to Streamline Governance

Vietnam's National Assembly has taken a historic step toward administrative reform, passing a resolution Thursday to merge provincial-level units from 63 to 34. The move marks the country's most significant governance restructuring in decades, aiming to enhance efficiency and reduce bureaucratic costs.

Redrawing the Administrative Map

The approved plan will consolidate 52 existing provinces into 23 new administrative units, creating a structure of six centrally governed cities and 28 provinces. The resolution took immediate legal effect, with local governments in merged regions set to begin operations by July 1.

Workforce and Financial Implications

Official data reveals the restructuring affects 447,000 civil servants, with plans to reduce public sector staffing by 250,000 positions. Projections indicate potential savings exceeding 190 trillion Vietnamese dong (US$7.5 billion) between 2026 and 2030 through streamlined operations.

Implementation Roadmap

The central government will oversee transitional measures, including payroll adjustments and resource redistribution. Authorities emphasize the reforms will maintain public service continuity while adopting a two-tier administrative system designed to accelerate decision-making processes.

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