A view of HCM City's skyline at night. The city plans to consolidate wards in 80 wards across 10 districts as part of its effort to enhance state management. — VNS Photo Bồ Xuân Hiệp

The mergers aim to enhance state management, leading to significant cost savings related to civil servants' salaries, allowances, and the construction or upkeep of administrative facilities.

The districts affected by the initiative include Districts 3, 4, 5, 6, 8, 10, 11, Bình Thạnh, Gò Vấp, and Phú Nhuận.

The plan details scenarios for mergers such as combining two or three wards into one. Several new wards will also be established by adjusting existing ward boundaries.

The proposal will be submitted to the Ministry of Home Affairs for evaluation before being submitted to the Government, which will submit it to the National Assembly for final approval in September.

The Department of Home Affairs anticipates around 450 redundant officials and civil servants may be impacted by the mergers.

The reason behind the mergers is to align with criteria set by the National Assembly regarding the population size and area of a ward in a district, according to the department.

A ward must have a population of at least 15,000 and cover an area of 5.5 square kilometres, while communes should have a population of 5,000 and cover an area of 30 square kilometres, the department said.

Authorities have assured the public that efforts will be made to minimise any adverse effects.

They are also expected to assist in updating administrative documents for residents and supporting affected officials and civil servants in merged wards with securing suitable job placements or addressing employment concerns.

Currently, the country’s largest city comprises 16 districts, five outlying districts and Thủ Đức City, encompassing a total of 312 wards, communes, and townships.

The initiative to merge wards within the districts was approved during the 17th session of the People's Council meeting which concluded on Wednesday.

The three-day meeting discussed ways to achieve a growth rate of 7.5-8 per cent this year, including accelerating public spending, improving public services, streamlining administrative processes, and others.

Particular emphasis was placed on expediting public spending, boosting consumption, and addressing business challenges in the second half of 2024.

The city aims to disburse VNĐ73 trillion, or 95 per cent of public investment, by the end of 2024.

It grew 6.46 per cent in the first half, according to the Statistics Office. — VNS