Vietnam’s National Assembly on Monday approved sweeping constitutional amendments that abolish the entire district-level government structure, a bold step in the country’s most radical administrative overhaul in decades.
In a unanimous vote, lawmakers scrapped the intermediate tier of governance, leaving only two levels, provinces and communes, in an effort to streamline bureaucracy and slash public spending. The move is part of a broader reform agenda driven by Communist Party General Secretary To Lam aimed at transforming Vietnam’s public sector and boosting economic performance.
“This important reform will help us achieve fast, stable, and sustainable development,” Lam said in a recent address. The restructuring is designed to support Vietnam’s ambition of reaching middle-income status by 2030.
As part of the changes, the National Assembly also approved a plan to reduce the number of communes from over 10,000 to about 3,300, significantly expanding their size. According to Minister of Interior Pham Thi Thanh Tra, this consolidation will eliminate approximately 120,000 part-time positions at the commune level.
The reforms are expected to save billions of dollars, with officials estimating a reduction of one in five public sector jobs. Last week, the Assembly passed legislation to merge most provinces and cities, resulting in the loss of nearly 80,000 jobs. In February, the number of government ministries was cut, leading to an additional 23,000 job reductions.
These drastic cuts mirror recent austerity measures by other global leaders, including U.S. President Donald Trump and Argentine President Javier Milei, both known for aggressive anti-bureaucracy campaigns.
However, the changes have stirred unease in a system where state employment has traditionally guaranteed lifetime job security. The reforms follow an extensive anti-corruption crackdown that has already toppled several high-ranking officials and business executives.
Despite internal disruptions, Vietnam remains focused on economic growth, targeting an 8% GDP increase this year after recording 7.1% in 2024. However, trade tensions loom large as the country negotiates with Washington to prevent a proposed 46% U.S. tariff that threatens its export-driven economy.
Written By Rodney Mbua
