The Politburo and the Secretariat have agreed on a major restructuring plan to consolidate administrative units at all levels, forming a two-tier local government model while merging certain provinces and eliminating the district level.

This ambitious plan, aimed at creating a more efficient and future-proof administrative structure, is currently undergoing consultation from local authorities, agencies, and sectors before being presented to the Central Committee at the 11th Plenum scheduled for mid-April.

General Secretary To Lam emphasized that this administrative restructuring is not merely about redrawing administrative boundaries but rather about reorganizing economic spaces, reallocating resources, and streamlining economic management.

The ultimate goal is not only to reduce administrative costs but also to create new momentum for economic and social development, ensuring long-term stability and sustainability.

Interior Minister Pham Thi Thanh Tra reiterated that the restructuring aims to expand development space and create a solid foundation for the nation's progress in the new era.

The consolidation will also streamline local government structures and reduce the number of officials, redirecting savings toward public welfare and social security.

Merging small provinces to unlock growth potential

Speaking to VietNamNet, National Assembly Deputy Vu Trong Kim, former Secretary of the Quang Tri Provincial Party Committee, stressed that merging small provinces would unlock resources for rapid growth.

He compared small provinces to "tight-fitting clothes" that restrict movement and development, suggesting that merging Ho Chi Minh City with one or two surrounding provinces could create a robust economic hub in the Southeast region.

Similarly, merging certain Central Highlands provinces with coastal provinces would enhance development opportunities.

Kim noted that smaller administrative units made sense when infrastructure was limited and communication technology was underdeveloped.

However, modern transportation and rapid IT advancements have made it feasible to consolidate regions for greater economic efficiency and social integration.

Associate Professor Dr. Vu Van Phuc, Vice Chairman of the Scientific Council of Central Party Agencies, argued that merging provinces and eliminating the district level would streamline policy implementation, making it faster and more consistent without intermediate bureaucratic layers that can sometimes act as obstacles.

The direct connection between provincial and grassroots levels would also enable quicker problem-solving and stronger governance.

Phuc further explained that the savings from cutting administrative costs could be redirected to essential public services, such as education and healthcare.

For instance, the Politburo recently decided to make education free from preschool to high school starting next academic year. There are even discussions about potentially offering free healthcare by 2030.

Former Secretary-General of the Central Theoretical Council Nguyen Viet Thong emphasized the importance of avoiding rigid criteria in the restructuring process.

Instead of adhering strictly to geographical or historical factors, he advocated combining various criteria like population density, area size, and socio-economic potential to form optimal administrative units.

Thong warned against parochial attitudes that view mergers as a burden on wealthier provinces. Instead, he emphasized that the combined strengths of merged provinces could generate new opportunities and mutual growth.

He pointed out that developed countries like China have about 30 provinces, while the United States has 50 states and Japan has 47 prefectures.

Vietnam's current model of 63 provinces and cities needs streamlining to foster sustainable development and overcome the "provincial mindset" that hampers progress.

Economic and investment advantages

From a business perspective, Dr. Tran Khac Tam, Chairman of the Soc Trang Business Association, expressed enthusiasm for the reform, stating that the consolidation would make it easier for companies to expand and invest.

Merging provinces and removing the district level would reduce bureaucratic hurdles and eliminate one layer of administrative approvals, thus saving time and operational costs.

Tam noted that consolidating smaller provinces into larger entities would create a more attractive investment environment. Regions with agricultural and raw material resources but lacking infrastructure could partner with areas that have ports and processing facilities. This would promote industrial synergies and economic integration.

He emphasized that the reform would also enable businesses to operate seamlessly across merged territories without facing administrative barriers between former provinces. This would encourage more robust regional development and greater investment attraction.

Thu Hang - Tran Thuong - Quang Phong