Vietnam’s National Assembly approves radical government restructuring

Vietnam's National Assembly has approved a significant governmental reform plan that will reduce the number of ministries from 18 to 14, effective March 1. This move, supported by over 97% of lawmakers, aims to enhance administrative efficiency and cut costs, projected to save money and streamline operations. The restructuring will merge several ministries, including the Ministry of Planning and Investment with the Ministry of Finance, and the Ministry of Transport with the Ministry of Construction, alongside the elimination of five ministries and four agencies. The reforms are expected to impact approximately 100,000 state officials, with a focus on removing underperforming employees to foster a more capable public sector. While investors and officials have welcomed the initiative, some anticipate short-term administrative delays. This reform aligns with global trends of governmental cost-cutting measures being implemented in various countries.