HANOI (TIP): Vietnam is planning to merge provinces and eliminate district-level authorities, the government said March 6, as a streamlining drive aiming to slash billions of dollars from state budgets gathers pace.
The cost-cutting measures have already seen the number of government ministries and agencies slashed from 30 to 22, and one in five public sector jobs will be cut over the next five years.
On Thursday, a statement on the government’s website cited Prime Minister Pham Minh Chinh as saying a “key and urgent task” was to complete the rearrangement of “administrative boundaries… merging some provinces… and cutting off the district level.”
State media said the merging of provinces is scheduled for this year, aiming at “streamlining the apparatus and improving the quality, efficiency and effective distribution of resources.”
Communist-ruled Vietnam, a one-party state, is currently divided into 63 major cities and provinces, under which there are around 700 administrative units at the district level and more than 10,000 at the communal level.
Almost two million people worked in the public sector as of 2022, according to the government, which announced this year that 100,000 people would be made redundant or offered early retirement as part of the bureaucratic reforms.
It is unclear if there will be further job cuts as part of the provincial mergers, or which provinces will be affected. (AFP)