Explainer: how Việt Nam streamlines local government to boost efficiency

May 22, 2025 - 19:46
By mid-2025, Việt Nam will scrap its administrative district level, shifting to a streamlined two-tier system that hands sweeping new powers to provinces and communes.
A local official guides a family on how to give feedback on the reorganisation of commune-level administrative units. — VNA/VNS Photo

HÀ NỘI — By July 2025, Việt Nam’s three-tiered government system will be a thing of the past. Districts—the middle layer between provinces and communes—will be abolished. In their place, a leaner, two-tier system will emerge, comprising only provincial and commune levels.

The reform, outlined in the Politburo's Conclusion No.127 issued this February, is not just a bureaucratic reshuffle. It is a radical rethinking of how government operates at the local level—who delivers public services, how decisions are made and where citizens turn when they need help.

Cutting a layer

Under the new system, districts will cease to exist. The responsibilities they once held will be redistributed: about one-third will be transferred upward to the provincial level, while the rest will go downward, to commune-level administrative units, including communes, wards, and special zones (which is the new designation for the current district and municipal islands, totalling 11).

"Roughly two-thirds of the district's work will now rest with the communes," Deputy Prime Minister Nguyễn Hòa Bình explained in a March meeting. "And one-third will go to the provinces."

This redistribution is monumental. The commune-level administrative units, now numbering more than 10,000, will be consolidated into around 3,321 larger ones. Each will effectively function like a mini-district, with expanded territory, larger populations and far more complex mandates than before. 

According to Minister of Home Affairs Phạm Thị Thanh Trà, the average nationwide reduction of 66.9 per cent in the number of commune-level administrative units is in line with the directives of the Central Party Committee and the practical realities of localities.

This reduction basically meets the requirement of building grassroots-level governments that are closer to and more in touch with the people, in order to better serve them.

A historic merger

The district reform is only one part of a broader reorganisation. In parallel, Việt Nam is redrawing its provincial map. Out of 63 current provincial-level units, 52 will be merged into new, larger jurisdictions.

When the dust settles, the country will be divided into just 28 provinces and six centrally governed cities, each with expanded administrative reach and responsibilities.

This consolidation addresses a long-standing imbalance. Official criteria require provinces to have a minimum population and land area, standards that many provinces fail to meet.

For example, as of 2023, 17 provinces had populations below the minimum threshold of 900,000 (for mountainous regions) or 1.4 million (for lowlands), while 28 fell short on land size.

Some cities and provinces will remain untouched. Hà Nội, Huế and Quảng Ninh, among others, meet the current requirements. The northern border mountainous province Cao Bằng, though it falls short of requirements, will be preserved due to unique geographical and strategic considerations.

From service delivery to self-management

The essence of the reform is not just consolidation, it’s decentralisation. The goal is to empower local governments to take direct responsibility for services that affect people’s lives.

Nowhere is this clearer than in education and health. Commune-level governments will assume control over public kindergartens, primary schools and lower secondary schools—functions previously overseen by district-level education departments.

Healthcare follows the same pattern. Existing commune health stations will remain, but larger communes may establish their own public health service units to handle a wider range of medical needs.

District-level health centres and hospitals will fall under the direct management of the provincial health departments, and will be reorganised to serve clusters of communes.

Other essential services—including land use, construction, environmental protection and agriculture—will also fall under the new commune’s watch. Each commune will establish a public project management board and a dedicated public service centre, transforming it into a genuine hub of governance and administration.

A leap of faith

Under the new model, each commune will have a People’s Council of up to 40 elected representatives and a streamlined executive branch of five specialised offices. These include departments for general administration, justice, culture and social affairs, economic affairs and service delivery.

These bodies will be tasked with executing policy, planning and budgeting, as well as coordinating across larger territories than ever before. The policy blueprint revealed on May 19 identifies 161 tasks for district authorities, of which 129 will be reassigned to communes. The remaining 32 will be transferred to the provincial authorities.

The timeline is tight. The first restructured commune governments are mandated to begin operations by July 1. The entire system should be up and running by August 30. — VNS

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