Vietnam to merge provinces, cut 80,000 government jobs in historic reform

On June 12, 2025, Vietnam's National Assembly voted overwhelmingly to reduce the country's 63 provincial and city administrations to just 34. This significant consolidation is part of a broader effort to cut state spending and improve administrative efficiency. The reform is expected to result in the elimination of approximately 79,339 public sector positions through retirements, reassignments, or redundancies

Described by Home Affairs Minister Pham Thi Thanh Tra as the "biggest-ever revolution since the country was founded," the overhaul marks a dramatic shift from Vietnam's traditional model of guaranteed public employment

Key Mergers and Changes

The restructuring plan includes several notable mergers:

Only 11 provinces and cities, including Hanoi and Hue, will remain unchanged by the reform .

The job cuts are part of a broader strategy to create a leaner, more agile public sector. In February 2025, the government reduced the number of ministries and agencies from 30 to 22, resulting in 23,000 job losses

While the government frames the changes as necessary for "fast, stable, and sustainable development," the reforms have sparked concern among long-serving officials facing sudden redundancy. One provincial official, facing redundancy after more than three decades of service, expressed being "shocked and sad" despite compensation being offered .

The overhaul aims to shift governance from passive administration to active public service. Communist Party General Secretary To Lam emphasised the need for the public sector to "shift from passive management to active service to the people"

The reforms also include constitutional changes that will reduce the administrative hierarchy from three to two levels, eliminating the district level and expanding communes .

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Vietnam to merge provinces, cut 80,000 government jobs in historic reform

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