Phan Xuân Diện (right), a former official of the Con Cuông District Department of Agriculture and Rural Development (now Department of Agriculture and Environment), Nghệ An Province, with his medicinal plants after leaving his government job to build his own business. — VNA/VNS Photo

HÀ NỘI — Việt Nam’s sweeping administrative reforms are reshaping its Government, cutting public sector jobs while opening doors to private enterprise and new economic projects, making career transitions a pressing challenge.

Kiều Công Thược, chairman of the Vietnam Development Fund (VNFund), said that streamlining the bureaucratic system is not unique to Việt Nam, but is a global trend.

Many developed countries have implemented significant workforce reductions in public administration while introducing policies to support public-sector employees in their career transitions. These policies go beyond mere job placement and include skills training, psychological adaptation and integration into new labour markets.

In the United States, for example, the Trade Adjustment Assistance (TAA) programme provides benefits and support to workers who lose their jobs due to the impact of international trade.

The initiative helps affected employees acquire new skills to stay competitive in the workforce, according to Thược.

Similarly, South Korea has implemented vocational transition policies for public-sector employees through training programmes and financial support. Businesses offering vocational training to employees can claim expenses from labour insurance funds, provided they register and purchase labour insurance.

The South Korean government prioritises full training support for small and medium-sized enterprises (SMEs), while large companies receive 60 per cent support and firms with over 1,000 employees receive 40 per cent.

Thược said that, despite these successful models, Việt Nam still faces significant challenges in developing policies to support public-sector workers transitioning to the private sector.

One key challenge is the lack of a specialised vocational training framework for public employees after organisational restructuring.

Additionally, workplace culture and people's mindsets pose obstacles, as many government employees are accustomed to a stable working environment, with fixed salaries.

Public-sector employees often lack the necessary skills to compete in the private labour market.

Drawing from international experience, Thược identified key factors for successful career transitions, including early career orientation and in-depth counselling, skills training aligned with labour market needs, financial support policies (such as subsidies, preferential loans and insurance funds), and collaboration with the private sector to create new employment opportunities.

“Each phase requires proper policies to ensure flexibility and social stability,” he told the Tin Tức (News) newspaper.

Reducing quantity, improving quality

Public-sector downsizing is a crucial policy aimed at improving the effectiveness of State governance, reducing the burden on the national budget and building a streamlined and transparent administrative system.

This approach optimises resources, modernises public administration and fosters national development. Supporting workers in career transitions not only mitigates unemployment pressure but also stimulates business growth, expands the labour market and diversifies the workforce.

CEO of VOVINAM Digital Bạch Ngọc Chiến viewed streamlining as an inevitable part of development. He saw it as an opportunity to retain and nurture high-quality human resources within the State system.

Public-sector employees transitioning to the private sector have the advantage of systematic thinking and procedural knowledge, which can contribute significantly to private enterprises.

Chiến proposed implementing a performance evaluation system for Government employees to encourage contributions from high-quality personnel.

CEO of Mỹ Việt International Group Doãn Hữu Tuệ, who worked at the State Bank of Vietnam for nearly 20 years, shared a similar perspective.

In 2011, he transitioned to a private company as an executive assistant. This decision gave him more understanding of corporate structures.

He highlighted the stark differences between the public and private sectors, particularly in employee evaluation.

“Private businesses do not care about an employee’s academic qualifications or previous titles. What matters most is their actual contribution to the company. Performance is measured quantitatively and based on efficiency,” Tuệ said.

Associate Professor Dr Đỗ Hương Lan, Director of the Institute for Policy and Management at the University of Social Sciences and Humanities, said: “Career transition is not a loss but an opportunity for workers.”

As one of the country’s leading research and training institutions, the university has conducted various studies, scientific conferences and policy consultations on social security, labour and employment.

The Institute for Policy and Management has also partnered with businesses to develop the ROAD2NEXT career transition support ecosystem.

This multidimensional ecosystem helps public-sector employees redefine their professional identities, unlock their latent skills, and overcome challenges when leaving the government sector. It also provides retraining, upskilling and new career opportunities that align with market demands and individual capabilities.

Associate Professor Dr Lê Thị Thanh Hà, Deputy Director of the Institute of Philosophy at the Hồ Chí Minh National Academy of Politics, suggested developing appropriate policies for Government employees directly affected by organisational restructuring.

As recruitment in the public sector declines, the labour market will shift towards manufacturing, business and, particularly, private enterprises and foreign-invested firms.

A solution that is both urgent and long-term involves removing institutional barriers, reforming administrative procedures, and significantly improving the business environment.

Policies should encourage innovation, entrepreneurship and lawful investments by businesses and individuals. — VNS