HANOI, August 19, 2025 – In one of its most ambitious administrative reforms to date, the Vietnamese government is actively implementing a sweeping plan to create a more efficient, modern, and streamlined state apparatus. The multi-year initiative involves a significant reduction of the public sector workforce, with plans set to streamline personnel by tens of thousands across the country, including a recently highlighted consolidation effort affecting nearly 130,000 positions.
This major overhaul is a core component of Vietnam's broader national development strategy, aimed at reducing bureaucracy, enhancing governance, and reallocating state resources toward economic growth and digital transformation. The plan targets cadres, civil servants, and public employees at all levels of government, from central agencies to local communes.
The Driving Force: Efficiency, Modernization, and Economic Growth
The primary objective behind the large-scale downsizing is to reshape the public sector to be more agile and effective. For years, the government has acknowledged challenges posed by a cumbersome bureaucracy, overlapping departmental functions, and high administrative costs that consume a significant portion of the state budget.
Key goals of the reform include:
- Improving Governance Efficiency: By consolidating administrative units and eliminating redundant positions, the government aims to speed up decision-making and public service delivery.
- Reducing Bureaucracy: The initiative directly tackles "red tape," a long-standing challenge for both citizens and businesses, thereby improving the investment and business climate.
- Enhancing Accountability: The reform moves away from the traditional "job for life" model, introducing more performance-based evaluation systems and fixed-term contracts for certain roles to foster a more accountable and competitive civil service.
- Fostering Digital Transformation: A leaner workforce necessitates the accelerated adoption of e-governance and digital technologies to maintain and improve the quality of public services.
This initiative is underpinned by a robust legal framework, including the revised Law on Cadres and Civil Servants and specific government decrees, such as Decree No. 29/2023/NĐ-CP, which outlines the policies and procedures for staff streamlining.
Implementation and Support for Affected Personnel
The reduction is not being implemented through arbitrary layoffs but through a structured, multi-pronged approach. One of the most significant methods is the reorganization and merging of administrative units at the provincial and commune levels. This process naturally leads to a surplus of personnel, who are then subject to the new streamlining policies.
Recognizing the significant impact on the lives of public employees, the government has put in place a comprehensive support system. Policies for redundant staff include:
- Early Retirement Schemes: Attractive incentive packages are offered to encourage eligible employees to retire before the mandatory age.
- Financial Severance Packages: For those who are let go, there are policies providing financial compensation to aid their transition.
- Job Transition Support: Allowances and programs are being established to help former public servants find new employment in the private sector.
The government has earmarked a substantial budget to ensure the smooth implementation of these support policies, aiming to mitigate social disruption and ensure fairness for the affected individuals.
A Long-Term Vision for a Modern Vietnam
This nationwide effort to streamline the public sector is more than a cost-cutting measure; it is a strategic repositioning of the state's role in a rapidly developing economy. By creating a more professional and efficient civil service, Vietnam aims to unlock its full potential, attract greater foreign investment, and build a government that is truly responsive to the needs of its people and the demands of the 21st century. The process, while challenging, is viewed by leadership as a crucial step in the nation's journey toward becoming a high-income, developed country.
