Crafting Compelling Compensation: A Post-Merger Policy Proposal

Ho Chi Minh City to Create a ‘Golden Triangle’

On June 12th, the National Assembly discussed the rearrangement of provincial-level administrative units for the year 2025.

At the session, Representative Tran Hoang Ngan from Ho Chi Minh City shared that Vietnam has undergone several changes in the number of provincial-level administrative units. In the context of the 4th Industrial Revolution and the era of internet connectivity, there is an opportunity to streamline the political apparatus by merging provinces and cities, thereby reducing budget burdens and improving economic efficiency.

Apart from reducing budgetary burdens, Mr. Ngan emphasized the importance of creating development momentum and space. He stated that the merger of provinces and cities is not just a sum of their land areas and populations but also a multiplication of their GDPs.

As an example, he suggested that merging Ho Chi Minh City with the industrial hub of Binh Duong and the maritime logistics center of Ba Ria-Vung Tau would create a ‘golden triangle’ for the country. He added that Ho Chi Minh City is expected to contribute even more to the national budget in the future.

Furthermore, Mr. Ngan mentioned the potential formation of a ‘new dynamic quadrangle’ with the addition of free trade areas and an international financial center through the integration of Ho Chi Minh City with other provinces.

However, to achieve these goals, the Ho Chi Minh City delegation emphasized the need for investment and flexible institutions that are suitable for each locality. It is also crucial to ensure decentralization and prioritization of resources for infrastructure development, especially in transportation and digital infrastructure, to promote digital governance.

During the discussion, Representative Nguyen Viet Ha from Tuyen Quang proposed considering the addition of content to the draft resolution regarding the location of the political and administrative centers of the merged provinces. This suggestion aims to ensure unity and fully institutionalize the important policies of the Party on the merger of provinces.

Supporting Officials and Efficiently Managing Surplus Office Spaces

At the session, Representative Nguyen Thi Thu Ha from Quang Ninh acknowledged that reorganizing administrative units would facilitate the restructuring of administrative agencies at all levels, improving governance and service quality for citizens and businesses.

However, she pointed out potential challenges and difficulties in the implementation process, requiring close supervision, coordinated efforts, and appropriate policies.

Regarding the handling of surplus office spaces, it is estimated that out of a total of 38,182 office spaces in 52 provinces and cities after the rearrangement, there will be 4,226 surplus office spaces. She emphasized the need for clear and timely regulations on the authority and options for reusing, converting, auctioning, or selling these spaces to avoid waste or abandonment.

Additionally, she highlighted the challenge of reorganizing the apparatus and arranging officials, public employees, and civil servants. With a total of 447,657 people in the 52 provinces and cities affected by the rearrangement, ensuring proper and consensual arrangements while adhering to regulations is crucial.

She also suggested expediting post-merger salary reforms, as the workload, management scope, and responsibilities increase for officials and public employees, especially at the commune level.

Representative Pham Van Hoa from Dong Thap acknowledged the emotional impact of the merger on officials, as some may transition from leadership positions to deputy roles or specialist positions. However, he emphasized that the primary concern for most officials and public employees is the need to commute long distances to their new workplaces, disrupting their family lives and daily routines. Therefore, he stressed the importance of providing support and sharing concerns to create consensus and offering timely and adequate support for those who wish to resign.

Attention to Geographical Indications and Internationally Protected Products

Representative Nguyen Minh Tam from Quang Binh expressed agreement with the rearrangement but raised concerns about geographical indications and internationally recognized natural and cultural heritage sites, as well as protected products of the province.

She explained that when the province’s name is changed, these indications and the associated international media and tourism information will be affected. For example, Son Doong Cave, considered a gem of Vietnamese tourism and associated with Quang Binh, may face challenges in terms of branding and international recognition if the province’s name changes.

Additionally, Vietnam has several internationally protected products, such as Binh Phuoc cashews, Ngoc Linh ginseng, Ben Tre coconut, and Binh Thuan dragon fruit, as well as tourist destinations like Hoi An. She expressed concern that changing the names of provinces and cities could negatively impact the economy and these established brands.

Therefore, she suggested early solutions and specific guidance, prioritizing the protection of these brands, especially those already present in international markets. She proposed registering product protection with a territorial scope rather than relying on administrative units.