On June 12, 2025, Vietnam's National Assembly voted overwhelmingly to reduce the country's 63 provincial and city administrations to just 34. This significant consolidation is part of a broader effort to cut state spending and improve administrative efficiency. The reform is expected to result in the elimination of approximately 79,339 public sector positions through retirements, reassignments, or redundancies

Described by Home Affairs Minister Pham Thi Thanh Tra as the "biggest-ever revolution since the country was founded," the overhaul marks a dramatic shift from Vietnam's traditional model of guaranteed public employment 

Key Mergers and Changes

The restructuring plan includes several notable mergers:

• Tuyên Quang will absorb Hà Giang, forming a province of 13,800 km² with 1.86 million people.
  
  

• Lào Cai will merge with Yên Bái, creating a province of 13,256 km² and 1.78 million people.
  
  

• Thái Nguyên will absorb Bắc Kạn, expanding to 8,375 km² with 1.8 million residents.
  
  

• Phú Thọ will merge with Hòa Bình and Vĩnh Phúc, forming a province of 9,361 km² and 4.02 million people.
  
  

• Ho Chi Minh City will merge with Bình Dương and Bà Rịa – Vũng Tàu, forming a mega-city of 6,772 km² and 14 million people .
  
  

Only 11 provinces and cities, including Hanoi and Hue, will remain unchanged by the reform .

The job cuts are part of a broader strategy to create a leaner, more agile public sector. In February 2025, the government reduced the number of ministries and agencies from 30 to 22, resulting in 23,000 job losses 

While the government frames the changes as necessary for "fast, stable, and sustainable development," the reforms have sparked concern among long-serving officials facing sudden redundancy. One provincial official, facing redundancy after more than three decades of service, expressed being "shocked and sad" despite compensation being offered .

The overhaul aims to shift governance from passive administration to active public service. Communist Party General Secretary To Lam emphasised the need for the public sector to "shift from passive management to active service to the people"

The reforms also include constitutional changes that will reduce the administrative hierarchy from three to two levels, eliminating the district level and expanding communes .