Vietnam’s National Assembly has approved a comprehensive government restructuring plan to streamline its bureaucracy and enhance administrative efficiency. The ambitious overhaul aims to reduce the workforce by 20%, impacting approximately 100,000 civil servants.
The restructuring plan involves merging several ministries and abolishing others to improve efficiency and achieve significant cost savings. Key changes include combining the Planning and Investment Ministry with the Finance Ministry and consolidating the Transport Ministry with the Construction Ministry. Additionally, the Natural Resources and Environment Ministry will be combined with the Agriculture Ministry.
General Secretary To Lam emphasized the critical nature of these reforms, describing them as essential for boosting efficiency and driving economic growth. He highlighted that the move would save money for the state budget and enhance the overall effectiveness of the government apparatus.
The plan aligns with global trends of post-pandemic cost-cutting measures similar to those implemented or pledged by other countries, including Argentina and the United States. Despite the expected short-term administrative delays, the government remains optimistic about achieving an 8% economic growth target this year.
Investors, diplomats, and officials have broadly welcomed the plan, recognizing its potential to improve Vietnam’s administrative efficiency and economic performance. However, they anticipate some initial challenges as the new structure is implemented.
Overall, Vietnam’s government overhaul represents a significant step towards a leaner, more efficient administration that has the potential to drive long-term economic growth and development.
