On the morning of October 31, the National Assembly convened to discuss draft resolutions on urban governance in Hai Phong and the proposal to designate Hue as a centrally governed city.

Speaking during the session, General Secretary To Lam explained that the plan to designate Hue as a centrally governed city has been in preparation for a long time.

He noted that a centrally governed city must serve as a regional growth hub. Currently, there are five centrally governed cities, with Hue proposed as the sixth.

General Secretary To Lam stressed that a centrally governed city must hold development potential and serve as a regional growth engine. As such, he suggested exploring special mechanisms and policies to lead in innovation, fiscal management, and socio-economic development.

“If Hue becomes a centrally governed city, the first question is, how will it develop?” he asked, emphasizing the importance of sustainable, balanced growth. "If the city grows too quickly while rural areas struggle, this imbalance could cause people to flood into the city."

The General Secretary shared that the central government has assessed Hue’s proposal and found it meets most criteria, though some limitations remain. These will be addressed in ongoing discussions.

“Hue is well-suited for this status, but the city must also overcome certain challenges,” he said.

For other regions aiming to achieve centrally governed status, he advised adhering to criteria regarding planning, population, economic and social development, and cultural value.

“Vietnam for Hue, and Hue for Vietnam. I believe Hue is deserving, though transitioning to this status will take time. Hopefully, this period won’t be too long,” he added.

On urban governance in Hai Phong, General Secretary To Lam acknowledged concerns over the city’s governance model, emphasizing the importance of a streamlined, efficient government structure with substantive roles.

He highlighted the need for genuine reform, noting that “the People’s Council must have qualified members without overlapping duties.”

Since the 12th Party Congress, the central government has recognized the need for a more compact and effective government. Progress has been made at lower levels, such as merging local communes and districts, but the restructuring has yet to fully extend to provinces and certain departments within central agencies. Streamlining at the central level will set an example for provinces to follow, he added.

General Secretary To Lam stressed that the central government, including Party committees, the National Assembly, and the Government, must lead by example in downsizing. “Without streamlining, development is impossible,” he cautioned.

He pointed out that nearly 70% of the budget is spent on salaries and regular expenses. Such spending leaves little room for development investment.

The General Secretary also explained that budget constraints hinder salary increases because 80-90% of funds are allocated to administration, leaving insufficient resources for other needs.

Therefore, he affirmed the need to continue reducing bureaucracy, cutting payrolls, and minimizing routine spending to reserve resources for development investment. A cumbersome administration hinders progress, he emphasized.

Some departments and agencies have unclear functions, lack delegation to local governments, and often delay responses, which wastes time.

He noted that one of the most challenging targets this term is productivity. Despite economic growth, real labor productivity is declining. Without improving productivity, socio-economic development will stagnate.

General Secretary To Lam urged a frank assessment of declining labor productivity in Vietnam, which lags behind many regional countries. Increasing productivity requires a highly skilled workforce, technological advancements, effective management, and streamlined roles.

Tran Thuong