Vietnam Reshapes Country Amid Radical Government Cuts—What To Know

Newsweek

2 days ago

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
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Vietnam's legislature approved a plan on Thursday to reshape the country's administrative borders, merging dozens of provinces and cities in a move that officials say will slash nearly 80,000 government jobs.
Newsweek contacted Vietnam's Foreign Ministry via email with a request for comment.
Why It Matters
Vietnam has enjoyed an economic rise in recent years, solidifying its position as a global manufacturing hub. The country's gross domestic product grew by 7.1 percent last year, and the government is targeting 8 percent in 2025.
U.S. President Donald Trump's tariffs on Vietnam—announced in April and now paused until early July—threatened the export-driven economy and prompted officials in Hanoi to redouble their efforts to downsize its bureacracy, efforts that echoed those of the U.S. Department of Government Efficiency.
What To Know
The new plan will mark the largest shakeup of Vietnam's administrative map since the postwar unification of North and South Vietnam in the late 1970s. It will reduce the country's 63 provincial and city administrations to just 34, with only 11 regions to retain their current status.
Hoang Thanh Tung, chair of the Vietnamese National Assembly's Legal and Judicial Committee, characterized the merger of provinces and cities as "a revolution to streamline the organizational apparatus and restructure administrative units on an unprecedented scale," according to local media reports.
Hoang said 79,339 officials would be "streamlined," quitting their jobs or taking early retirement following the merger.
A train passes through a narrow street in Hanoi's Old Quarter on June 27, 2024. Tourists take photos of the speeding train. Hanoi's Train Street is a popular tourist attraction.
A train passes through a narrow street in Hanoi's Old Quarter on June 27, 2024. Tourists take photos of the speeding train. Hanoi's Train Street is a popular tourist attraction.Not everyone is pleased with the plan. One provincial official told AFPhe felt "shocked and sad" about having to leave after three decades in the job.
"I may receive some billion [Vietnamese] dong in compensation, but I am not happy," the government employee said. "I don't know what to do now, though I think I am still completely fit for work."
This week's vote—part of Communist Party leader To Lam's sweeping reforms—comes after the number of Vietnamese government agencies and ministries was already cut from 30 to 22, costing 23,000 people their jobs.
What's People Are Saying
Le Hong Hiep, senior fellow and coordinator of the Vietnam Studies Programme at the Singapore-based ISEAS-Yusof Ishak Institute, wrote in April: "These reforms represent Vietnam's most ambitious and consequential administrative overhaul since reunification in 1976, potentially reshaping its political and economic landscapes for decades.
"Economically, a leaner bureaucracy promises to reduce red tape and corruption, enhancing responsiveness and attracting foreign investment. In the long run, the streamlined system is expected to bolster Vietnam's growth by fostering efficient policy execution and regional economic clusters."
What's Next
Local officials are expected to finalize the changes and announce new leadership structures by June 30, with implementation planned for July 1.