The Politburo and the Secretariat have largely reached a consensus on a major restructuring plan to streamline Vietnam’s administrative system.

This reform will see the merger of several provinces, the elimination of district-level governance, and the continued consolidation of commune-level administrations.

Currently under review by provincial and sectoral authorities, the proposal is being refined before submission to the 11th Central Committee Conference, scheduled for mid-April.

The restructuring effort is aimed at more than just redrawing administrative boundaries; it seeks to optimize economic space, resource allocation, and governance efficiency.

General Secretary To Lam emphasized that this is not merely an adjustment of administrative geography but a strategic reform to redistribute and integrate economic resources for long-term national development.

Recognizing the significance of this transformation, VietNamNet is launching the series "Historic Administrative Restructuring with a Century-Long Vision", featuring insights and analyses from leading experts.

A bold vision for a two-tier local government model

In just one month, the Government Party Committee has completed its proposal, outlining a transition to a two-tier local government system, consisting of provincial and grassroots levels, with the elimination of district-level administration.

The proposal suggests merging several provinces, ultimately reducing the number of provincial-level administrative units by about 50% and commune-level units by 60-70%.

Vietnam currently has 63 provincial-level units (including 57 provinces and six centrally governed cities: Hanoi, Ho Chi Minh City, Da Nang, Can Tho, Hai Phong, and Hue).

The country also has 696 district-level units, including two city districts under centrally governed cities, 84 provincial cities, 53 towns, 49 urban districts, and 508 rural districts, alongside 10,035 commune-level units.

Under the new plan, Vietnam will retain just over 30 provincial-level units and approximately 3,000 commune-level units, eliminating all 696 district-level administrative divisions.

The logic behind the restructuring

According to Associate Professor Dr. Vu Van Phuc, Vice Chairman of the Scientific Council of Central Party Agencies, this initiative represents a determined effort by the Party and the State to streamline governance and improve efficiency.

The central government completed its restructuring in February 2024, and as of March 1, ministries, parliamentary bodies, and the Vietnam Fatherland Front have been operating under the streamlined model.

All governmental functions, public services, and business operations continue uninterrupted, proving the feasibility and necessity of administrative consolidation.

Dr. Phuc argued that local governments must follow suit to ensure smooth governance across all levels. The restructuring is not merely about reducing administrative units; it aims to expand economic space, create growth momentum, and establish a long-term, stable governance system for national development.

Minister of Home Affairs Pham Thi Thanh Tra reiterated that this reform is essential for strengthening Vietnam’s economic foundation, enabling sustainable growth in the modern era.

Vietnam's readiness for a leaner government structure

Dr. Phuc noted that after 40 years of economic reform, Vietnam has the political, economic, cultural, and social foundation to support this transition.

The leadership capabilities of officials at all levels have improved significantly, and they now have the experience necessary to manage larger administrative units effectively.

Internationally, most governments operate with just two levels of local administration, and their provincial-level units are significantly fewer.

China, despite its vast size and population, has only a little over 30 provincial-level units, making Vietnam’s current structure appear unnecessarily fragmented.

Associate Professor Dr. Nguyen Viet Thong, former Secretary-General of the Central Theoretical Council, explained that past administrative divisions were necessary due to limitations in governance capacity, communication infrastructure, and transportation networks.

These constraints no longer exist, thanks to advances in digital transformation, information technology, and modern infrastructure.

While the division of provinces in previous decades facilitated local economic growth, the burden of government spending has become unsustainable. Currently, 65-70% of the national budget is allocated to recurrent expenditures, primarily sustaining the bureaucratic system rather than funding development projects.

General Secretary To Lam has repeatedly emphasized the need to reallocate resources toward investment and growth.

Dr. Thong pointed out that in the early years of reform, Vietnam had to split provinces and districts to manage local affairs effectively, but today’s conditions no longer justify maintaining such a fragmented system.

The "golden opportunity" for administrative reform

Vietnam faces an urgent need to modernize its administrative structure to remain competitive on the global stage.

The nation’s leadership has long warned against the risk of economic stagnation, and the only way forward is through bold reforms and efficient governance.

By 2045, Vietnam aspires to become a high-income, developed nation. To achieve this, public investment must increase, and government structures must become leaner and more agile.

Dr. Thong emphasized that the conditions for restructuring are now optimal. Vietnam has entered a "golden era" for administrative reform, with widespread public support for the initiative launched by General Secretary To Lam.

The successful restructuring of central government agencies has been well received, creating momentum for similar changes at the local level.

Technology as a driving force for efficiency

Dr. Phuc highlighted that digital transformation has made traditional governance models obsolete. The transition from paper-based administration to digital governance means that many bureaucratic layers can be eliminated without disrupting public services.

With robust digital infrastructure, even remote areas can now be seamlessly connected to central government systems, reducing the need for multiple levels of administration. The goal is to enable effective governance at larger scales without compromising accessibility.

The Vietnamese government has already taken steps in this direction. As of March 2025, all government officials at national and local levels are required to process documents digitally.

By June 30, 2025, all official paperwork must be handled online with digital signatures, marking a decisive move toward a fully digital administration.

Dr. Phuc argued that with modern technology, administrative units can be significantly larger without loss of efficiency.

The traditional concerns about geographical distances and bureaucratic delays are no longer relevant in a digitally connected world.

A historical transition with long-term impact

Historian Duong Trung Quoc, Vice Chairman and Secretary-General of the Vietnam Association of Historical Sciences, acknowledged that restructuring administrative units is never without challenges.

Citizens may face temporary inconveniences, such as updating personal identification documents, but digital governance can minimize these disruptions.

He emphasized that history supports downsizing bureaucratic structures, as overly fragmented administrations often become inefficient and costly.

The global trend is toward leaner, more effective government systems, and Vietnam must adapt to stay competitive.

As Vietnam moves forward with its most ambitious administrative reform in decades, the nation stands at a turning point. With political determination, technological advancements, and public support, this restructuring effort promises to shape Vietnam’s governance for the next century.

This historic transformation is not just about cutting bureaucracy; it is about creating a governance model that enables long-term economic growth and national prosperity. The time for action is now, and Vietnam is seizing the opportunity to reshape its future with a bold, strategic vision.

Tran Thuong - Thu Hang - Quang Phong