Vietnam’s National Assembly is initiating a major public sector reform aimed at reducing employment by 20% over five years, restructuring its administrative framework by decreasing ministries from 30 to 22. This plan, likened to global reform efforts, may see around 100,000 civil servants affected. While projected savings could reach 113 trillion dongs, concerns about economic reliance on exports and internal corruption persist. The Communist Party seeks to enhance government efficiency to achieve middle-income status by 2030 and high-income status by 2045.
Vietnam’s Ambitious Public Sector Reform Begins
The National Assembly of Vietnam is set to embark on a transformative journey starting Wednesday, with plans to reduce public sector employment by 20% over the next five years. This bold initiative has been described as a ‘revolution’ by communist officials who aim to enhance the nation’s already flourishing economy.
As part of this significant reform, the country will streamline its administrative structure by cutting the number of ministries and government agencies from 30 to 22. Additionally, vital sectors including public services, state media, police, and military will also experience a comprehensive restructuring.
Comparison with Global Reform Movements
This initiative echoes the strategies of notable figures like former U.S. President Donald Trump and tech leader Elon Musk, both of whom sought to implement budget cuts across various sectors in the United States. Similarly, Argentine President Javier Milei has made headlines by terminating over 33,000 public sector jobs.
Officials project that this reform could yield savings of around 113 trillion dongs (over 4.3 billion euros) during the implementation period, despite the anticipated costs of pensions and severance packages totaling nearly 5 billion euros.
As the National Assembly, which is under the control of the Communist Party, prepares for its final vote on the matter, the process of downsizing has already commenced. One civil servant, who wished to remain anonymous, shared his painful experience of losing his job as a television producer when the state-run news channel he worked for was abruptly closed. With five public television stations having ceased operations, many individuals are now seeking alternative employment.
Despite a projected economic growth of 7.1% for 2024, concerns about Vietnam’s vulnerability due to its reliance on exports are mounting. The nation is also grappling with issues related to bureaucracy and an extensive anti-corruption campaign that has hindered day-to-day operations.
The General Secretary of the Communist Party, To Lam, is resolute in his vision for Vietnam to achieve middle-income status by 2030 and ascend to high-income levels by 2045. He has emphasized the need for state agencies to move away from harboring ineffective civil servants, comparing the necessary reforms to taking ‘bitter medicine’ to eliminate underlying issues.
Nguyen Khac Giang, a researcher at the ISEAS institute in Singapore, notes that the Communist Party’s primary goal is to cultivate a more agile and responsive governmental framework that can tackle contemporary economic and governance challenges.
In the wake of To Lam’s appointment, the Communist Party of Vietnam announced the resignation of four members for breaching regulations in their fight against corruption. However, with nepotism persisting as a significant challenge—Vietnam ranks 83rd out of 180 countries on Transparency International’s corruption perception index—executing these public service reforms will be fraught with hurdles.
Despite the uncertainty, civil servants like Vu Quynh Huong are contemplating their futures. She worries that the most skilled individuals may be tempted to transition to the private sector, leaving behind a vacuum of talent in public service. “I am considering early retirement,” she revealed, contemplating the possibility of working as an independent consultant or joining her family business.