Vietnam will approve a significant bureaucratic reform that would reduce government agencies by as much as 20%

The National Assembly of Vietnam has adopted a reform that would reduce government agencies by as much as 20% in order to save money and increase efficiency.

A comprehensive bureaucratic reform plan that aims to shrink the size of the government by up to 20% in an effort to save expenses and boost administrative efficiency is scheduled to be approved by Vietnam’s National Assembly on Tuesday. Among other structural adjustments, the reform will result in the closure of five ministries, four agencies, and five state television networks.

Passed earlier Tuesday, the modification to the Law on Organizing the Government made the proposal possible. To Lam, the general secretary of the Communist Party, which controls Vietnam, highlighted the reform’s wider advantages, saying that it will “not only save money for the state budget but, more importantly, boost the efficiency of the system.”

Officials, diplomats, and investors have generally embraced the move, while some anticipate some administrative setbacks as the changes are implemented. Vietnam’s economy is significantly dependent on foreign investment, thus the government has promised that the reform won’t interfere with project approvals.

The Ministry of Finance will combine with the Ministry of Planning and Investment, which is in charge of authorizing foreign investment proposals, as part of the reorganization. Furthermore, the Ministry of Agriculture and the Ministry of Natural Resources and Environment will merge, as will the Ministry of Transportation and the Ministry of Construction.

Vietnam’s action is in line with other cost-cutting initiatives being carried out throughout the world, such as those proposed by former US President Donald Trump and Argentina’s President Javier Milei.

An estimated 100,000 state officials may be impacted by the restructure, according to state media estimates. The significance of performance-based retention was emphasized by Deputy Prime Minister Nguyen Hoa Binh, who declared, “Unskilled workers must be eliminated from the system.” It is unacceptable for state entities to serve as safe havens for inept officials.

Vietnam’s dedication to improving efficiency, simplifying governance, and adjusting to a shifting economic environment is demonstrated by this comprehensive reform.