Vietnam's National Assembly has approved a plan to merge 63 provincial-level units into 34, including six centrally governed cities and 28 provinces, aiming for leaner governance and faster decision-making.
The government's roadmap merges 52 provinces into 23 new administrative units. Under the new two-tier system, more than 447,000 civil servants will undergo payroll reviews, and about 250,000 positions will be cut. This streamlining could free up over 190 trillion VND between 2026 and 2030 for public investment and services.
From July 1, local administrations in the reconfigured units will start operations. The central government will oversee transitional measures and resolve implementation challenges, ensuring a smooth handover.
For young entrepreneurs and tech innovators, the merger promises a simpler regulatory landscape – faster licensing, clearer regional policies and fewer bureaucratic hurdles. Business-friendly reforms may also attract more foreign and domestic investment.
Observers point out that Vietnam's move mirrors global trends: in an era of digital economies and sustainability challenges, many nations are rethinking old administrative structures to boost efficiency and agility.
Streamlined regional planning may also boost sustainable tourism, making it easier to develop new travel routes and immersive experiences across Vietnam's diverse landscapes.
Reference(s):
Vietnam's National Assembly approves provincial merger resolution
cgtn.com
