Visitors tour Quảng Ninh’s Public Administrative Service Centre, which operates a one-stop mechanism to receive, process and return administrative documents for organisations and individuals. — VNA/VNS Photo Huy Hùng

Mai Hương

Việt Nam’s new leadership has opened its term with a clear signal: administrative reform is no longer a supporting agenda, but a central pillar of the country’s growth strategy.

As Việt Nam targets double-digit growth, the push to cut administrative procedures and business conditions reflects a deeper shift in governance — from control to facilitation, from pre-check to post-check and from formal compliance to real efficiency.

Conclusion 18, issued in early April by the Communist Party of Việt Nam’s Central Committee, sets out this direction clearly.

It requires ministries to eliminate at least 30 per cent of conditional business lines and remove unnecessary business conditions, while cutting processing time and compliance costs by half by 2026 compared to 2024.

The scale of the task remains substantial, with nearly 200 conditional business lines and just over 4,600 business conditions still in place, underscoring the depth of reform required. Crucially, these targets are not only quantified but tied directly to deadlines and the accountability of ministers and agency heads.

Policy shift

This is a notable departure from previous reform cycles. Administrative simplification has long been part of Việt Nam’s policy agenda, but it was often treated as a gradual and technical process. The current approach, by contrast, places reform at the centre of economic strategy. It recognises that administrative inefficiencies are not bureaucratic bottlenecks but structural constraints that directly affect investment, productivity and growth.

According to Nguyễn Hùng Huế, acting director of the Administrative Procedures Control Agency under the Ministry of Justice, the reform targets are grounded in both domestic realities and international experience.

“These requirements are not only a political commitment but are built on practical assessments and lessons from other countries. The goal is to remove bottlenecks, mobilise resources and serve growth,” he said.

From an economic approach, the push is essential.

In an environment where capital is available but deployment is often delayed, administrative barriers can act as hidden costs that erode efficiency.

Complex procedures, overlapping approvals and inconsistent implementation can prolong project timelines, discourage investment and reduce the overall dynamism of the economy. Removing these barriers is therefore about unlocking resources already embedded within the system.

Việt Nam’s recent administrative reforms are already translating into measurable improvements.

In the World Bank’s Business Ready 2025 report, Việt Nam emerged as one of the strongest performers among 101 economies, ranking in the top 20 per cent globally in operational efficiency with a score of 70.44. The country placed among the leading group worldwide, reflecting significant progress in how businesses comply with regulations and access public services in practice.

The gains were particularly evident in financial services, where Việt Nam scored 80.32, ranking among the top performers in Asia, and in utility services, with a score of 90.03, placing it among global leaders in the provision of electricity, water and internet. Improvements in credit information systems and secured transactions have also enhanced firms’ access to finance, reinforcing the broader business environment.

Tax officials in HCM City guide household businesses in transitioning to a declaration-based tax system. — VNA/VNS Photo Hứa Chung

However, the report also reveals a notable gap across pillars. While Việt Nam ranked in the top quintile globally for operational efficiency, it remained in the middle tier for both regulatory framework and public services, suggesting that implementation had outpaced institutional design.

This dual reality both validates recent reforms — particularly in digitalisation and service delivery — and underscores the urgency of deeper, structural changes to address remaining bottlenecks and sustain growth momentum.

Resolving blocks

The Government’s current reform push can therefore be seen as an effort to bridge this gap, with policy placing strong emphasis on execution. By late April, all 16 ministries and ministerial-level agencies had submitted plans to cut administrative procedures and business conditions. However, only three ministries fully met all required targets, pointing to uneven implementation and the need for stronger oversight.

At the policy level, the Government has already issued a series of resolutions aimed at accelerating reform. On April 29, eight resolutions were adopted to cut, simplify and decentralise administrative procedures and business conditions across multiple sectors, covering key areas such as justice, agriculture and environment, industry and trade, and science and technology.

Building on this, Prime Minister Lê Minh Hưng has called for further reforms in key areas including environmental impact assessment, construction licensing, fire prevention and industrial zone development, where administrative bottlenecks remain most pronounced. The scale of these changes is significant, but their ultimate impact will depend on how effectively they are implemented.

A central pillar of the reform is decentralisation. Ministerial-level procedures still account for almost 45 per cent of the total, well above the 10–30 per cent range typical in developed economies, according to the Organisation for Economic Cooperation and Development (OECD), highlighting persistent over-centralisation. Reducing this share would allow central agencies to focus on policy-making while empowering local authorities to implement more efficiently.

This shift has important implications for both governance and economic performance. By bringing decision-making closer to businesses and citizens, decentralisation can shorten processing times and improve responsiveness. At the same time, it requires stronger coordination and oversight to ensure consistency across different levels of government.

A staff member at the Hà Nội Public Administrative Service Centre assists a resident using digital and AI-powered tools, as part of efforts to reduce processing time and minimise paperwork. — VNA/VNS Photo Phan Phương

However, the experience of businesses suggests that challenges remain. The Vietnam Chamber of Commerce and Industry (VCCI) has highlighted several issues that continue to affect the effectiveness of administrative reform. One of the most prominent is the persistence of dual systems, where businesses are required to submit both digital and paper documents even when electronic verification has been completed.

This duplication not only increases costs but also undermines the objectives of digital transformation. The VCCI has therefore proposed a fundamental principle: once information has been electronically verified, no paper documents should be required. Implementing this principle would represent a significant step towards a truly digital administrative system.

Another key recommendation is the adoption of a “no re-submission” principle. Enterprises should not be required to provide information that already exists in national databases, such as tax records, business registration or social insurance data. This approach would not only reduce compliance costs but also reflect the level of integration and interoperability of government data systems.

Sector-specific bottlenecks further illustrate the need for deeper reform. In the seafood export industry, inconsistencies in documentation continue – particularly the lack of standardised export certificates and forms across markets, including those required by the EU – to delay shipments and increase compliance costs.

In the investment process, overlapping procedures remain a significant concern. Lê Văn Thắng, director of the Le and McKenzie Law Company, pointed to the investment policy approval process, noting that it often duplicates subsequent licensing requirements, effectively prolonging project timelines without improving regulatory oversight.

Foreign investors have also highlighted issues related to fragmentation and predictability. Kiguchi Satoshi, director of Izumo Vietnam Engineering, noted that procedures were often spread across multiple agencies, making timelines difficult to forecast and increasing uncertainty for investors.

These perspectives underline a critical point: administrative reform must not only reduce the number of procedures but also improve the overall coherence, transparency and predictability of the system. Without such improvements, there is a risk that reforms will exist on paper without delivering meaningful benefits in practice.

Measurable impact

The Government has acknowledged this challenge and emphasised that reform must be substantive.

The Prime Minister has underscored that the quality of reform is more important than the quantity of measures.

“While the number of cuts is important, what matters more is their substance and whether they truly reduce time and compliance costs. Even a smaller number of reforms can generate significant impact if implemented effectively,” he said.

This reflects a broader shift in policy thinking: administrative reform is about delivering tangible economic outcomes, aligning with the Business Ready framework, which emphasises implementation effectiveness alongside regulatory design.

Digital transformation is expected to be a key enabler in this process. The Government has set ambitious targets for digitising administrative records, issuing electronic results and enabling the reuse of data across systems. These measures are intended to create a more transparent and efficient administrative environment, where processes can be monitored in real time and bottlenecks can be quickly identified and addressed.

At the same time, stronger accountability mechanisms are being introduced. Ministries that fail to meet reform targets are subject to public scrutiny, and ministers are held directly responsible for outcomes. This represents a significant departure from previous approaches, where reform progress was often uneven and difficult to enforce.

Efforts are also being driven at the ministerial level. The Ministry of Finance has proposed cutting or simplifying over 800 administrative procedures, with estimated reductions of nearly 55 per cent in compliance costs and around the same amount in processing time. Several conditional business lines, including accounting services, duty-free retail and insurance agency activities, are also set to be removed or shifted to post-inspection, signalling a move towards risk-based management.

The Ministry of Industry and Trade is reviewing dozens of procedures across key sectors, including electricity, import-export licensing and trade promotion. The focus is on eliminating overlapping requirements and simplifying licensing processes that directly affect business operations, particularly in sectors with high transaction frequency.

Technicians process canned food products for export in An Giang Province. Administrative reform is expected to streamline procedures, reduce processing time and support export growth. — VNA/VNS Photo Văn Sĩ

Early indicators suggest these efforts are beginning to have an impact.

In the first four months of 2026, almost 120,000 enterprises were newly established or resumed operations, representing a significant increase compared to the same period last year. Foreign direct investment has also grown strongly, reflecting improving investor confidence.

However, sustaining this momentum will require consistent implementation across all levels of government. Administrative reform is inherently complex, involving changes in regulations, processes and institutional behaviour. It requires coordination among ministries, alignment between central and local authorities, and a shift in how public officials approach their roles.

Hoàng Minh Hiếu, a National Assembly deputy, emphasised the importance of measurable outcomes.

“We need clear criteria to assess whether reforms actually reduce time and costs for businesses and how they impact economic development. Otherwise, reforms risk being assessed only in terms of numbers,” he said.

Việt Nam’s reform drive is unfolding in a global environment marked by uncertainty and intensifying competition for investment. In this context, improving administrative efficiency is not only about domestic policy but also about international positioning.

The Business Ready 2025 results suggest that Việt Nam has already built a relatively strong foundation in operational efficiency.

The challenge now is to extend these gains to regulatory quality and public service delivery. If these gaps are closed, Việt Nam’s business environment will become markedly more competitive — providing a stronger foundation for sustained high growth. — VNS