Deputy PM Nguyen Hoa Binh: Local government reform to accelerate growth
VOV.VN - Vietnam’s new two-tier local government model, set to launch on July 1, 2025, reflects what Deputy Prime Minister Nguyen Hoa Binh calls a bold step to streamline the administrative apparatus and stimulate national growth.

The 15th National Assembly, at its 9th session, passed a resolution amending and supplementing several provisions of the 2013 Constitution, the Law on Local Government Organization (revised), and adjusted numerous provisions in other related laws and draft laws. These changes are aimed at facilitating the streamlining of the administrative structure and establishing the legal foundation for organizing a two-tier local government system.
Relevant resolutions have been simultaneously announced today (June 30), across 34 newly merged provinces and cities, and broadcast online to all commune-level authorities, ahead of the full system transition under the new model starting July 1, 2025.
Speaking to the press ahead of what he called a historic moment for the country, Deputy PM Nguyen Hoa Binh once again emphasized that the implementation is being carried out in a timely manner, based on major directions of the Party and jointly enacted by the Government and the National Assembly.
“Our organizational apparatus has served us well for a long time, but at this point, certain limitations have become apparent,” he noted. “The structure is not truly scientific and it’s cumbersome, with too many intermediary layers. The workforce is large, which makes it difficult to improve wage policies.”
That is why the Party Central Committee and the Politburo decided to carry out what he described as a “revolution in organizational structure.” The new model establishes a two-tier local government system, eliminating the district level, and reorganizes the provincial and commune-level structures on a new scale. The number of provinces and centrally-run cities will be reduced from 63 to 34, and the number of commune-level administrative units will be cut from 10,035 to 3,321, including 2,621 communes, 687 wards, and 13 special administrative zones.
In addition to the amended and supplemented laws passed by the National Assembly, the Government has issued nearly 40 decrees, including 28 specifically on decentralization and delegation of authority.
Deputy PM Binh stressed that the goal is to streamline the organizational apparatus, eliminate intermediary layers, bring government closer to the people, and use this opportunity to restructure the public workforce. The leaner structure will create room to attract a younger generation of well-trained and highly qualified officials.
The administrative reorganization is also designed to create large enough economic zones with strong regional connectivity, linking economic regions and local strengths in preparation for a new era of national development. Notably, some of these will be economic zones of regional prominence, such as the proposed merger of Ho Chi Minh City with Binh Duong and Ba Ria–Vung Tau -three major centers of industry and tourism- aimed at consolidating strength and capacity to drive economic growth.
These reforms are being carried out alongside major national strategies on infrastructure development, science and technology, innovation, digital transformation, and the development of international financial centers.
“This is a series of initiatives to create economic space-initiatives that prepare us to accelerate,” Deputy PM Nguyen Hoa Binh said.
Widespread praise for Vietnam’s bold decision
The Deputy PM noted that the Politburo had recently assigned 19 working delegations, each led by a Politburo member or Secretariat member to localities to oversee several key tasks: preparations for the upcoming mergers, including provincial centers and commune centers; commune-level mergers; personnel arrangements at the provincial and commune levels; and the drafting of documents for upcoming Party congresses.
The Politburo has convened weekly meetings to hear progress reports and, ultimately, decided that on June 30, 2025, a simultaneous nationwide announcement would be made covering all resolutions and decisions, from organizational structure to personnel. Party and State leaders were assigned to attend this nationally significant event in localities.
In the meantime, localities have demonstrated strong initiative. Party committees and local administrations have shown great responsibility, organizing public consultations and receiving overwhelming support. Approval rates have all exceeded 90%, with two localities reaching 100%. The vast majority between 98 and 99%, reflects the high level of public support for this policy.
Preparations for the announcement have generated excitement among the population. Some businesses even proposed holding fireworks displays to celebrate the historic occasion of launching new provinces. The nationwide atmosphere is highly positive.
“The world has also taken note,” Deputy Prime Minister Nguyen Hoa Binh said. “When we met with leaders of various countries, they said this was a bold, decisive, and wise move by the Party and State of Vietnam. One comrade even described it as a ‘gutsy’ decision by Vietnamese leadership.”
Serving people through digital platforms, no more delays
The Government has reviewed the legal framework and issued 28 decrees to delegate and decentralize over 1,000 specific responsibilities. Of more than 600 functions previously assigned to district-level administrations, more than 90 have now been shifted to the provincial level, while the rest have been delegated to communes.
The Government has also directed localities to review key infrastructure projects, especially those related to connectivity. For example, the National Assembly has approved the investment policy for the expressway connecting Pleiku and Quy Nhon, which will significantly reduce the travel distance and time between Binh Dinh and Gia Lai after their planned merger, thereby supporting the Central Highlands and facilitating development. Similarly, construction on many other roads is expected to begin in the near future.
The Government is currently directing the simultaneous groundbreaking of 80 projects on August 19.
The merging of provinces is aimed at creating new economic spaces, but without connectivity, this goal cannot be achieved. Infrastructure linkage, therefore, is of critical importance. It is essential to ensure national-level, regional-level, and intra-provincial connectivity, depending on the scale involved.
In the time ahead, every commune will have its own public administrative center, where citizens can access all administrative services. Most public services have already been digitized. The Government has tasked several units with developing virtual assistants to ensure the delivery of public services through digital platforms.
A pilot program conducted in Ho Chi Minh City over the past three months has yielded very positive results. The virtual assistant is now capable of answering questions and providing step-by-step guidance for 1,800 administrative procedures. Many services can now be completed by citizens from home. Of course, further steps will still need to be rolled out gradually.
As a result, government operations have become more transparent and accessible. Citizens are now able to monitor processes directly, which helps reduce harassment and misconduct. There will be no more delays, no more excuses – everything is clearly visible online.
“With relatively comprehensive preparations now in place, from overarching policy to economic infrastructure, human resources, administrative systems, decentralization, and delegation of powers. I believe the national economy will grow in the time ahead,” Deputy PM Nguyen Hoa Binh emphasized.