Vietnam’s National Assembly on Tuesday, February 18, approved an ambitious administrative reform aimed at reducing bureaucracy, cutting costs, and improving government efficiency. 

The plan, which takes effect on March 1, will streamline the government by reducing the number of ministries from 18 to 14, according to Reuters .  

The reform received overwhelming support, with over 97% of lawmakers voting in favor. As part of a broader effort to enhance governance, the restructuring will eliminate up to a fifth of government bodies, including five state-run television channels.  

Observers see these changes as crucial for achieving Vietnam’s 8% economic growth target for 2025, set by Prime Minister Pham Minh Chinh, with aspirations for double-digit growth in the coming years.  

“Restructuring will help save state funds and improve overall system performance,” said To Lam, General Secretary of the ruling Communist Party (CPV), while addressing parliament.  

According to the plan, the Planning and Investment Ministry will be merged with the Finance Ministry, while the Transport Ministry and the Construction Ministry will be combined. Similarly, the Natural Resources and Environment Ministry will be merged with the Agriculture Ministry.

While investors and officials have welcomed the reforms, some short-term administrative delays are anticipated during the transition. However, the government has assured that the approval process for investment projects—critical for Vietnam’s foreign investment-driven economy—will not be disrupted.  

Approximately 100,000 state officials are expected to be affected by the restructuring, with some facing dismissal due to poor performance. To mitigate the impact, the government has offered a range of payouts to thousands of civil servants being laid off.  

The biggest bureaucratic restructuring since Vietnam adopted pro-market reforms in the 1980s comes ahead of next year’s leadership reshuffle at the twice-in-a-decade National Party Congress, according to the Bangkok Post .

Ironically, on the same day the reform was approved, lawmakers appointed two new deputy prime ministers, increasing the total number to seven.  

(With inputs from Reuters and Bangkok Post.)