As part of a sweeping overhaul aimed at slashing billions of dollars in government spending, Vietnam is poised to reduce its number of provinces by a staggering 50% and consolidate nearly 70% of its communes. This ambitious plan, unveiled by the Vietnamese government, seeks to streamline the country’s administrative framework, making it more efficient and leaner. The proposed restructuring would see the number of government ministries and agencies shrink from 30 to 22, with a corresponding 20% reduction in the number of state employees over the next five years.
The driving force behind this initiative is the need to curb the country’s burgeoning public expenditure. With a current administrative setup comprising 63 major cities and provinces, which are further subdivided into approximately 700 districts and over 10,000 communes, the government recognizes the urgent need for consolidation. The Ministry of Home Affairs, led by Pham Thi Thanh Tra, has announced that the merger and reduction of provinces will take place before August this year.
This move is part of a broader effort to enhance the efficiency of Vietnam’s public sector, which currently employs nearly 2 million people. As of 2022, the government has already begun to implement reforms, with over 22,000 employees having been laid off or offered early retirement due to redundant roles or as part of the restructuring plan. While it remains uncertain whether further staff reductions will be made following the province consolidations, the government’s commitment to streamlining its operations is clear.
In a speech last December, To Lam, the Secretary-General of the Communist Party of Vietnam, emphasized the need for a leaner, more effective public sector. “If we want a strong body, sometimes we have to take bitter medicine and endure pain to remove the tumors,” he said, underscoring the importance of eliminating inefficiencies within the system.
The Vietnamese government’s bold plan to reduce its administrative footprint is a significant step towards achieving greater fiscal prudence and enhancing the overall efficiency of its public sector. As the country continues to navigate the complexities of economic growth and development, this initiative is likely to have far-reaching implications for its governance structure and public services.
Source: Channel News Asia