Paperwork being handled at Thất Khê Commune's Public Administrative Service Centre in Lạng Sơn Province. VNA/VNS Photos

By Lê Việt Dũng

Việt Nam this month formally made a historic shift in its administrative structure: the country transitioned to a two-tier local government model, abolishing the district level and dramatically empowering provincial and commune/ward-level governments.

At the heart of this reform is a bold reimagining of the commune/ward – the most grassroots unit of administration – as a full-fledged centre of governance, service delivery and decision-making. [The term commune is used for rural area and ward for urban area].

This is not just a bureaucratic reshuffle. It is a political and legal transformation designed to streamline the state, cut out middle layers and put real power and responsibility into the hands of local authorities who are closest to the people.

With the district layer removed, commune/ward-level governments have stepped up, not just in function but also in authority, structure, staffing and political significance.

Communes/wards now act as the primary interface between the state and the citizen, executing national laws, managing local services and making policy decisions on matters ranging from land and finance to education and the environment.

No longer passive implementers of top-down directives, they plan, decide, allocate resources, regulate and lead.

The commune/ward-level People’s Council [Assembly] remains the locally elected legislative body. But under the new system, it has:

• Two specialised committees for the first time: Legal Affairs and Socio-Economic Affairs.

• More responsibilities, now numbering almost 30 distinct tasks depending on whether it is a rural commune or an urban ward, a significant increase implemented on July 1.

• The power to approve local budgets, development plans, land-use schemes and sector-specific policies.

The council also reviews, monitors and holds the local executive accountable, with its leadership prohibited from concurrently holding executive positions to ensure independent oversight.

On the executive side, the commune/ward-level People’s Committee [Administration] has been restructured to operate with greater capacity and professionalism.

It now includes up to four specialised offices: the Office of the People's Council and the People's Committee, the Economic Affairs Office, the Socio-Cultural Affairs Office and the Public Administrative Service Centre.

These offices handle a wide range of core responsibilities, including managing public infrastructure, coordinating administrative services, overseeing social welfare programmes and supporting local economic initiatives.

The chairperson of the Commune/Ward People's Committee is now a more powerful and accountable figure, elected by the People's Council and confirmed by the provincial People's Committee, as there is no longer a district-level People's Committee to perform this role. They direct local operations, enforce laws, manage services, coordinate with provincial departments and lead emergency response efforts.

To support this expanded role, commune/ward staffing can be increased to up to 40 civil servants, doubling the previous average. This investment in human resources is intended to enable communes/wards to operate like mini-districts.

New authority, real impact

One of the most revolutionary aspects of the reform lies in land administration. Commune/ward-level authorities can now issue land use rights certificates; allocate and lease land to households and individuals; approve changes in land use purposes within defined limits; resolve certain land disputes without requiring court intervention; and manage local land-use plans and oversee compensation and resettlement in land recovery.

These responsibilities bring land-related services directly to the people and eliminate the need to go to higher-level offices, which previously led to delays and confusion.

Commune/ward-level governments have also gained independent budgetary status, with a direct relationship with the provincial treasury. They can draft, allocate, adjust and execute their own budgets; mobilise community contributions for public works; receive targeted transfers from provincial and central governments; and work directly with the regional State Treasury to manage accounts.

This gives communes/wards greater flexibility in responding to local needs, whether it’s investing in roads, schools or public health.

Meanwhile, while approval for foreign-invested projects remains under the jurisdiction of provincial authorities, commune/ward-level governments now play a much more active supporting role, particularly in land clearance, community coordination and site preparation.

In Lạng Sơn Province, for example, commune/ward authorities have been instrumental in facilitating timely land handover for industrial cluster projects involving foreign investors.

The People’s Committee of Tân Thành Commune managed land clearance and resettlement to ensure the Hoà Sơn 1 industrial cluster stayed on schedule, while authorities in Hữu Lũng Commune oversaw the relocation of households for the Hồ Sơn 1 project.

In these cases, commune/ward authorities coordinated with provincial departments to resolve land issues, persuaded residents to accept compensation packages, and ensured a clean site was handed over on time.

These actions have reinforced the commune/ward's role as a vital bridge between foreign investors and local communities, helping maintain momentum.

According to the Ministry of Finance, foreign investment into Việt Nam topped US$21.5 billion in the first half of this year, up 32.6 per cent year-on-year, reflecting the increased appeal of the country’s market following the reform.

Support and engagement

Commune/ward governments can also offer broader administrative services to foreign residents. Now, communes/wards have been authorised to process civil status procedures involving foreign nationals residing locally.

Commune/ward-level offices can now register births, marriages, guardianship arrangements and parent-child recognition involving a Vietnamese citizen and a foreign national, tasks previously handled at the district level.

Moreover, commune/ward offices can now certify copies of documents issued by foreign authorities - a major convenience for expatriates. For example, a foreigner needing a certified copy of a foreign-issued marriage certificate or diploma for a work permit application can now have it processed at the local commune/ward office, rather than travelling to a district justice office or notary public.

These changes reduce administrative friction for foreigners and support a more integrated, service-oriented local government.

Communes/wards are now direct providers of core public services. These include clean water supply, waste collection and treatment, local fire safety and prevention and maintenance of public facilities such as village roads, lighting systems and community centres.

They also manage public schools and health clinics, formerly under district-level management. These include early childhood, primary, and secondary schools as well as commune/ward health stations.

In the digital realm, communes/wards are tasked with delivering online public services, building databases for population, land, welfare and public health, connecting with provincial and national platforms and engaging citizens via digital consultations and feedback systems.

A volunteer assists a citizen in accessing digital services at the Hương Sơn Commune's Public Administrative Service Centre in Hà Tĩnh Province.

This is intended to move commune/ward governments from paper-based bureaucracy to digital-first administration, improving both speed and transparency.

Citizen interaction is a top priority. Commune/wards are now required to hold regular public dialogue sessions, disclose budgets and expenditures, respond to complaints and petitions under clear procedures and promote transparency in procurement and public spending.

This reform fundamentally repositions the commune/ward as the core unit of local governance, not just a subordinate administrative body. It is now an autonomous budget holder, a direct service provider and a land manager.

The overarching philosophy is clear: "What the local level manages, the local level decides." Provincial governments retain strategic oversight and coordination roles, but execution and frontline governance are now entrusted to commune/ward officials.

By eliminating redundant layers and bringing decision-making closer to where people live and work, the reform aims to improve service delivery, increase governance efficiency and unleash local initiative. VNS