Vietnam lawmakers approve merging provinces, slashing nearly 80,000 jobs

Revolutionizing Vietnam The Power of Merging Provinces and Slashing Jobs

In a bold move to streamline government services and reduce costs, Vietnam has approved plans to merge provinces and cities, resulting in the elimination of nearly 80,000 state jobs. This significant change is part of the country's efforts to achieve fast, stable, and sustainable development by radically cutting state expenditure.

The Background

Vietnam's National Assembly voted to reduce the number of provincial and city administrations from 63 to just 34, building on a previous reduction in ministries and agencies from 30 to 22 in February, which resulted in 23,000 job losses. This move is aimed at streamlining government services and reducing costs.

The Impact

The merge has sent shockwaves through Vietnam's administrative structure, with many officials facing redundancy or early retirement. According to Interior Minister Pham Thi Thanh Tra, approximately 79,339 officials will be affected by the changes, with some choosing to quit their jobs or submit for early retirement. This represents a significant change for a communist system where working for the state has traditionally meant a job for life.

The Human Side

The reforms have also had an emotional impact on those affected. One provincial official described feeling shocked and sad at having to leave his position after more than 30 years of public service. Another official, Nguyen Thang Loi from northern Thai Binh province, expressed mixed emotions about the merge, acknowledging its potential benefits while lamenting the loss of a familiar identity.

The Future

The streamlined administrative bodies will be expected to shift from passive management to active service to the people, according to Communist Party general secretary and most powerful figure in the country, To Lam. The government expects all cities and provinces to announce their new leadership on June 30 and begin full operation at the beginning of July.

Context

Vietnam's decision to merge provinces and cut jobs comes as the country faces economic challenges, including a reliance on exports and concerns about President Trump's threatened 46 percent tariff on Vietnam. The reforms follow a high-profile anti-corruption campaign in recent years, dubbed the blazing furnace, which has swept up dozens of business leaders and senior government figures.

The Influence

The influence of this decision will be significant, with far-reaching implications for Vietnam's administrative structure and economy. While the merge may reduce bureaucracy and increase efficiency, it also risks leading to concerns about job losses and their impact on local communities. As Vietnam continues to grow as a global manufacturing hub, its decisions have significant consequences for the country's development and international relationships.

Key Takeaways

Vietnam has approved plans to merge provinces and cities, resulting in the elimination of nearly 80,000 state jobs.
The move is part of efforts to radically cut state expenditure and achieve fast, stable, and sustainable development.
The reforms follow a previous reduction in the number of ministries and agencies from 30 to 22 in February, resulting in 23,000 job losses.
The merge has sent shockwaves through Vietnam's administrative structure, with many officials facing redundancy or early retirement.

The impute of this decision is significant, with far-reaching implications for Vietnam's administrative structure and economy. As the country continues to grow as a global manufacturing hub, its decisions have significant consequences for the country's development and international relationships.

Edward Lance Arellano Lorilla

CEO / Co-Founder

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