Vietnam To Approve Major Bureaucratic Reform, Cutting Government Bodies By Up To 20%

Vietnam’s National Assembly is set to approve a sweeping bureaucratic reform plan on Tuesday, aiming to reduce the size of the government by up to 20% in a bid to cut costs and improve administrative efficiency. The reform will see the elimination of five ministries, four agencies, and five state television channels, among other structural changes.

The plan was made possible by an amendment to the Law on Organising the Government, which was passed earlier on Tuesday. General Secretary of Vietnam’s ruling Communist Party, To Lam, emphasised the broader benefits of the reform, stating that it would “not only save money for the state budget but, more importantly, boost the efficiency of the system.”

Investors, diplomats, and officials have largely welcomed the initiative, though some expect short-term administrative delays as the changes take effect. However, the government has assured that the overhaul will not disrupt project approvals, a critical factor for Vietnam’s economy, which relies heavily on foreign investment.

As part of the restructuring, the Ministry of Planning and Investment, responsible for approving foreign investment projects, will merge with the Ministry of Finance. Additionally, the Ministry of Transport will be combined with the Ministry of Construction, while the Ministry of Natural Resources and Environment will merge with the Ministry of Agriculture.

Vietnam’s move aligns with similar cost-cutting measures being implemented globally, including those by Argentina’s President Javier Milei and former US President Donald Trump.

State media reports suggest that the restructuring could impact approximately 100,000 state officials. Deputy Prime Minister Nguyen Hoa Binh underscored the importance of performance-based retention, stating, “Poor-performing employees must be removed from the system. State agencies must not be safe shelters for incompetent officials.”

This ambitious reform signals Vietnam’s commitment to streamlining governance, enhancing efficiency, and adapting to a changing economic landscape.

Melissa Enoch

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