Vietmam lawmakers abolish district-level government
HANOI: Vietnam's National Assembly approved amendments to the constitution on Monday (Jun 16) to abolish an entire level of government, as part of major reforms to the way the communist country is run.
Lawmakers voted unanimously to do away with district-level administration, reducing the governmental structure to two layers – provinces and communes.
The move is the latest in a series of drastic changes to Vietnamese government aimed at saving billions of dollars in expenditure by cutting one in five public sector jobs.
In February they slashed the number of government ministries, resulting in 23,000 job losses.
The dramatic changes echo the steps taken by US President Donald Trump and Argentina's Javier Milei to take an axe to government spending.
But in a communist system where working for the state has long meant a job for life, the reforms piloted by party chief To Lam have caused some unease.
Lam, the Communist Party general secretary and top national leader, has said the drastic restructuring is needed if Vietnam is to achieve "fast, stable and sustainable development" in its quest to be a middle-income country by 2030.
The National Assembly also voted on Monday to reorganise the lowest level of government, reducing the number of communes from over 10,000 to around 3,300.
With this "important reform", the size of communes will be expanded, Minister of Interior Pham Thi Thanh Tra said.
The move will mean eliminating around 120,000 part-time jobs at the commune level, Tra said last week.
The governmental reforms follow a huge, wide-ranging anti-corruption drive that has seen dozens of senior government figures and top business leaders caught up.
Export-dependent manufacturing hub Vietnam is aiming for 8 per cent economic growth this year after hitting 7.1 per cent last year.
But a 46 per cent trade tariff threatened by Trump is causing anxiety, and Vietnamese negotiators are locked in talks with their US counterparts to find a solution.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
2 hours ago
- CNA
Man gets jail after embezzling more than S$194,000 from employer, leaving Singapore
SINGAPORE: A sales agent with a maid employment agency siphoned more than S$194,000 (US$151,600) over a two-year period before leaving Singapore in 2014. Wong Chow Toon was arrested only in 2023 when he returned to Singapore. The 53-year-old was sentenced to one-and-a-half years' jail on Monday (Jun 16) after he pleaded guilty to two charges of criminal breach of trust as a servant. The Singaporean started working at United Home International on Oct 2, 2010. As part of his job, he would collect payments to the company from customers who hired domestic workers. United Home International usually collected fees in two tranches. The first payment would be made at the point of application and the final payment would be collected when the domestic worker began the job. In the same month that he started work as a sales agent, Wong began pocketing money belonging to the company, most of them being the final payments. He would ask customers to pay both fees upfront at the point of application, claiming that this was the company's policy. He would then issue a receipt to customers, which reflected that both fees were paid. However, he manipulated the records in that he would have placed another sheet directly behind the receipt to prevent the carbon copies behind from being imprinted. Then, he wrote separately on the carbon copies to indicate that only the agency fees were paid. He kept one copy in the office and another was given to a driver with the company who would take the fees in cash to the main office. After the company had sourced a domestic worker and the employment had commenced, Wong would use placement fees from other customers to make payment to the company under a new receipt, which would not be given to the customer. Using this method, he collected and embezzled S$87,208 between Jan 13, 2012 and Dec 29, 2012. The following year, between Jan 5 and Dec 29, he siphoned another S$107,156. He spent the money on personal expenses and drinks. Wong left Singapore on Sep 28, 2014 and returned on Jan 9, 2023, when he was arrested at Changi Airport. Of the S$194,364 he misappropriated in total, Wong and his sister made partial restitution of S$74,543.50. Deputy Public Prosecutor Charles How said Wong fled the country for more than eight years, demonstrating a lack of remorse. However, Wong's lawyer, Mr John Koh from Avalon Law Corporation, said this description did not capture the nuances of Wong's situation. He said Wong and his sister had reached an agreement to repay the money in instalments and Wong was supposed to pay a portion of his salary every month to the company. When market conditions took a downturn, Wong's earnings fell from S$3,000 to S$4,000 a month to S$500 to S$600. Wong asked his employer to allow him to resign to seek alternative employment so that he could earn a better salary and return the money he owed, Mr Koh added. His employer refused the request. Several months later, Wong decided to leave for Thailand when he was offered a better job. His employer filed a police report when he left Singapore. Wong's sister continued to contact the company to maintain their intention of returning the money owed, but the employer evaded her correspondence. "It would not be fair to infer that our client had intended to evade justice while also trying to contact his employer for repayment," Mr Koh argued. The prosecution, in turn, pointed to an escalation in criminal behaviour exhibited by Wong as an aggravating factor. He was convicted in 2009 of criminal breach of trust and sentenced to a S$7,000 fine. The prosecution sought 18 to 20 months' jail, while the defence proposed 14 to 16 months' jail.
Independent Singapore
2 hours ago
- Independent Singapore
Asian markets defy turmoil; stocks and dollar surge even as oil prices climb
Photo: Depositphotos/leungchopan(for illustration purposes only) SYDNEY, AUSTRALIA: Asian equity securities showed outstanding flexibility on Monday, even as pressures between Israel and Iran intensified, fueling international worries of a bigger Middle East war. Asia brushes off geopolitical jitters According to the latest Reuters report, geopolitical tensions have introduced a new level of ambiguity as world leaders from the Group of Seven assembled in Canada, and U.S. tariffs persist in disrupting global trade deals. Notwithstanding the upheaval, investors remained unflustered. MSCI's largest index of Asia-Pacific shares outside Japan steadily climbed to 0.3%, while Japan's Nikkei increased 1.2% and South Korea's standard expanded to 1.3%. Chinese blue chips also moved 0.1% higher, reinforced by more robust-than-predicted May retail revenue. Oil surges again, raising inflation alarms Oil prices surged another 1% on Monday, adding to last week's 13%, as reservations grew amid concerns that the Israel-Iran skirmish could disrupt exports through the major Strait of Hormuz. Brent crude hit US$74.95 (S$95.95) per barrel, and U.S. crude clambered to US$73.82. The increase in energy outlays is expected to activate inflation anxieties, predominantly in energy-importing areas such as Europe and Asia. While this signifies trouble for countries depending on oil imports, it has sustained currencies of energy exporters such as Norway and Canada. The U.S. dollar also profited, emulating its change in recent years from energy importer to exporter. See also Meghan Markle and the US Presidency unproven rumors Eyes on the Feds amid rate cut uncertainty The world now turns to the U.S. Federal Reserve's conference this coming Wednesday. Markets extensively assume the Fed will keep rates stable and within the 4.25% to 4.5% range. The central bank's restructured 'dot plot' of interest rate estimates will be carefully observed, with JPMorgan's Michael Feroli foreseeing a move from two anticipated cuts this year to just one. Stakeholders are still betting on two rate decreases by December, with a likely start in September. U.S. retail sales statistics, due Tuesday, could influence sentiment further, while a market break on Thursday drives weekly 'out-of-work' privileges up to Wednesday. Global currency and stock movements show cautious optimism Notwithstanding the geopolitical challenges, U.S. stock futures bounced back following an early dip—S&P 500 futures rose 0.2% and Nasdaq futures 0.3%. In Europe, the reaction was more passive owing to the region's dependence on energy imports. EUROSTOXX 50 futures glided 0.2%, Germany's DAX plummeted to 0.3%, and the FTSE stayed generally flat. In currency markets, the dollar remained strong against the yen and euro, while the currencies of energy exporters rallied. The Norwegian crown hit its highest level since early 2023. Meanwhile, gold found modest safe-haven support, staying fixed at US$3,430/ounce. With an upsurge of central bank pronouncements due this week, from the U.S. to Japan, Norway, Sweden, and Switzerland, markets are primed for a possibly explosive ride formed by policy indicators, economic facts, and swelling geopolitical hazards.
CNA
2 hours ago
- CNA
Japan supermarket rice prices fall for third straight week
TOKYO : Japan's average supermarket rice prices fell for the third straight week through June 8, data showed on Monday, reflecting the release of cut-price grain from the government's emergency stockpile. Following a surge in the price of rice in Japan, a new farm minister last month ended a system of distributing emergency rice via auction and switched to discretionary contracts directly with retailers so that consumers would pay about 2,000 yen ($13.85) per 5 kg. That rice first became available through some retailers on May 31, selling out quickly. For the seven days to June 8, the average price of rice at supermarkets fell by 48 yen from the previous week to 4,176 yen, the farm ministry said. That is still nearly double prices the same time last year and above where Prime Minister Shigeru Ishiba has said they should be. Policymakers are particularly anxious about the high prices ahead of an upper house election in late July. Rice prices leapt in part because of a poor-quality harvest due to extreme heat in 2023, which led to a shortage of rice in the market around the middle of last year. The government said at the time there was no shortage and predicted that prices would stabilise as the new harvest became available. Instead, however, prices continued to rise. Farm Minister Shinjiro Koizumi, who took his post last month, said the ministry would change the way it surveys rice production to better reflect reality and that the government had miscalculated because of an antiquated system. "We will improve the accuracy of rice yield surveys by using the latest technology such as satellites and AI," Koizumi told reporters. ($1=144.45 yen)
