Vietnam’s National Assembly on Tuesday approved a bold bureaucratic reform plan that will slash up to a fifth of government bodies, as the country tries to cut costs and improve administrative efficiency.
The number of government ministries will be reduced to 14 from the current of 18, to be up and running from March 1, the assembly said in a statement. More than 97% of the lawmakers present approved the plan.
The assembly approved an amendment to legislation regarding governmental organization earlier on Tuesday, clearing the way for the proposed reduction of 15% to 20% of the state workforce, which will also impact four agencies and five state-run television channels, among other cuts.This initiative is aimed at “not only saving money for the state budget but, more importantly, enhancing the efficiency of the system,” stated To Lam, the General Secretary of Vietnam’s ruling Communist Party, to parliament last week.
The proposal has generally received approval from investors, diplomats, and officials, though they anticipate some short-term administrative delays in Vietnam, a major industrial center that heavily relies on foreign investments.
According to the government, this restructuring will not affect the approval process for projects.The planning and investment ministry, responsible for sanctioning foreign investment projects, will be consolidated with the finance ministry, while a merger will also occur between the transport ministry and the construction ministry.
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Additionally, the natural resources and environment ministry and the agriculture ministry will be combined.On Tuesday, lawmakers confirmed the appointment of two new deputy prime ministers, including the current investment minister, which will raise the total number of deputy prime ministers from five to seven.
This initiative aligns with similar government cost-reduction strategies being enacted or promised globally in the aftermath of the pandemic, such as those from Argentina’s libertarian President Javier Milei and U.S. President Donald Trump.Last month, Vietnam’s state media reported that the restructuring would influence 100,000 state officials, although no further details were provided.
“Underperforming employees need to be eliminated from the system,” Deputy Prime Minister Nguyen Hoa Binh was quoted as saying.”State agencies should not serve as safe havens for incompetent officials.”
