A corner of Ho Chi Minh City today |
For the first time since the August Revolution of 1945, a two-tier model of local government organization (at the provincial/municipal level and the commune/ward/town level) has been implemented nationwide.
This is not merely a rearrangement of administrative boundaries or a simple streamlining of the apparatus in the narrow sense, but also affirms the political will, strategic vision, and modern reformist thinking of the Party. This is also a turning point in strategic thinking about the regime: shifting from a multi-layered administrative model to a more streamlined, flexible, effective, and people-oriented one. It also vividly demonstrates the determination to build a modern governance system where the State no longer manages by administrative orders but instead delegates power, decentralizes, and is more accountable.
Amending the Constitution and the Law on Local Government Organization to realize this new model is not only a strong political act but also reflects the consistent reform vision of the Party, State, and General Secretary To Lam, with a clear orientation: putting people at the center, prioritizing efficiency, and placing the interests of national development above all local interests.
A new era is unfolding: an era of state governance based on modern principles, a lean apparatus for development, and an administrative system that dares to take responsibility and practically serves the people.
Innovating power thinking, enhancing the legitimacy and effectiveness of the State
For the first time in history, Vietnam has amended its Constitution to thoroughly decentralize power – a “revolution in the operation of state power.”
Asserting the Party’s reform will and vision
Amending the Constitution and restructuring the entire local government system – abandoning the familiar three-tier model for decades – is a decision that takes courage. This courage comes from the boldness to look directly at the institutional bottlenecks that have existed for too long, from the consistency in the policy of renewing the apparatus to make it “lean, effective, and efficient,” and from a deep belief that: for the country to develop rapidly and sustainably, a comprehensive institutional reform is necessary.
From centralization to decentralization, from management to service
The two-tier local government, along with a significant reduction in the number of administrative units, is a concrete manifestation of modern power thinking: power is no longer a top-down tool but a bottom-up service capacity that enables people’s development and local progress. Giving more power to the commune/ward level – the closest to the people – means trusting the people and the community to self-govern and create their own lives.
This also affirms a very fundamental aspect of the relationship between the Party, the State, and the people: the legitimacy of power comes from the effectiveness of service. The closer and more accountable a government is to the people, the more legitimate it is – and that is the strongest foundation for maintaining long-term political stability.
 People strongly agree with the Party and State’s major policy |
Bringing power closer to the people
The elimination of the intermediate level of government (district level), giving direct power to the Commune People’s Council and Commune People’s Committee, is not only to streamline the organization but also to bring oversight, legislation, and administration closer to the people than ever before. While previously, many decisions affecting people’s lives had to go through multiple layers of intermediaries, they will now be handled directly at the grassroots level – with the direct involvement of commune-level elected representatives.
This opens up great opportunities to build a more substantive democracy at the grassroots level – where state power is closely linked to the daily lives of the people. Democracy is no longer an abstract slogan but a vibrant reality – with town hall meetings, friendly local governments, and leaders who are ready to listen and take responsibility.
Restructuring the apparatus for more effective action and better service
No developed country has a cumbersome, complicated, and overlapping administrative apparatus. Modern governance requires a streamlined organizational system with clear responsibilities, transparent operations, and flexible actions. The milestone of July 1, 2025, marks a breakthrough administrative reform in decades – a comprehensive restructuring of the local government system into a two-tier model and reorganizing provincial and communal administrative units nationwide.
Optimizing the scale and functions of administrative units
Reducing the number of provinces/cities and communes is not a mechanical simplification but a strategic step to form administrative units with a large enough scale, strong enough resources, and capable enough apparatus to promote autonomy, self-governance, and sustainable development, fulfilling development tasks in the new context.
Small provinces, which are fragmented and divided – leading to dispersed resources, increased operating costs, and limited policy-making capacity – will be replaced by stronger provinces with high regional connectivity and efficient development coordination.
Similarly, after the merger, communes/wards will no longer be “formal administrative units” with too small a scale, insufficient staff, budget, and organizational capacity. Instead, they will become solid organizationally, with clear authority, well-defined responsibilities, close to the people, and practical.
 Map of the Socialist Republic of Vietnam |
Accelerating policy response
Shifting from a three-tier government (province-district-commune) to a two-tier (province-commune) is a breakthrough in administrative power structure. The district level, which is intermediary and can cause delays in policy implementation, is eliminated, helping to shorten the decision-making and execution process and reducing the risk of “top says, bottom doesn’t listen” or “top fast, bottom slow, middle hesitant.”
The post-reform apparatus will be leaner, more transparent, and faster-acting – in line with the spirit of “a Government that builds development, integrity, action, and service to the people.”
Saving budget, freeing up resources for development investment
Reducing headcounts, intermediary levels, streamlining personnel, reducing leadership positions, merging specialized agencies, and sharing offices all aim to significantly cut recurring costs, especially administrative costs.
According to preliminary estimates, the merger of administrative units will save tens of thousands of billion VND annually, not to mention opportunity costs from increased work efficiency, reduced processing time, and improved investment and business environment.
The saved budget can be reinvested in infrastructure, education, healthcare, and essential public services – areas that need priority in the post-pandemic recovery and breakthrough phase, facing global economic downturns and green transitions.
Closer to the people, accompanying the community’s development
Ultimately, institutional reform is not just about changing structures but about better serving the people, more effectively and closely.
The innovations that began on July 1, 2025, are not just about rearranging the state apparatus but also reshaping the relationship between the government and the people – towards companionship, service, and shared responsibility.
Enhancing service, narrowing the distance between the government and the people
When the district level is no longer a level of government, decisions related to people’s lives – from public investment, livelihood support, dispute resolution to public service provision – will be handled directly at the commune/ward level, the closest to the people. This will not only reduce time, procedures, and administrative costs but also help people feel the substantive role of the local government.
Commune/ward-level officials after the reform are not just “low-level civil servants” but those responsible for governing the area, directly exercising state power – from administrative, civil to economic and social aspects. People will no longer have to “go far to meet the government,” but the government will come closer to listen, share, and act together.
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Changing the image and social perception of the public service
This reform is a great opportunity to change the image and social perception of the public service by establishing a more people-oriented, transparent, and effective apparatus.
When people see power being devolved to the community, when they can directly access their representatives, when decisions are openly discussed and easily monitored – social trust will be strengthened. From there, the relationship between the State and the people will shift from “request-grant” to “development partners,” co-creating a shared future.
A new beginning for a creative and people-oriented governance
July 1, 2025, will be remembered not only as the beginning of a new government but, more profoundly, as the start of a new governance model, befitting a Vietnam entering an era of green development, digitalization, and deep global integration. It is an important step from mechanics to function, from form to substance.
This reform requires great efforts in terms of institutions, human resources, and civil service culture. It demands that officials enhance their capacity and that society changes its approach to the government. When successful, Vietnam will surely enter a new phase of development.
The 21st century is an era of speed, creativity, and efficiency. In this flow, a lean, dynamic, and people-oriented administrative apparatus is a prerequisite for the country not to be left behind. And from July 1, 2025 – we have bravely crossed the boundary of old thinking to create a future of action, efficiency, and development for the people.
Dr. Nguyen Si Dung
– 07:16 07/01/2025
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