Proposal for classification standards of administrative units following the merger

This is a necessary step to implement the 2013 Constitution (amended), the Law on Organization of Local Government No. 72/2025/NA15, and to address shortcomings in current regulations to align with practical realities following the 2025 administrative unit (AU) reorganization.

Major changes after the reorganization

According to the Ministry of Home Affairs, following the merger and reorganization of administrative units, the country now has 34 provincial-level administrative units (06 cities and 28 provinces) and 3,321 commune-level administrative units (2,621 communes, 687 wards, 13 special zones). The number and scale of provincial-level and commune-level administrative units have undergone significant changes compared to the period before the reorganization (prior to June 2025).

At the provincial level, 29 provincial-level administrative units were reduced. The average natural area of each province or city is 9,743 km², an increase of 85.3% compared to before. Lam Dong province currently has the largest area in the country at 24,243.13 km², far surpassing Nghe An – the previously largest province.

The average provincial population size has also increased by 85.3%, reaching over 3.3 million people. Ho Chi Minh City has the largest population, with more than 14.6 million people, an increase of nearly 4.7 million compared to before the reorganization.

Additionally, the establishment of “special zones” represents a completely new type of administrative unit, falling outside the scope of Resolution No. 1211/2016/SCNA13.

These changes have rendered the criteria system, scoring scale, and classification thresholds under Resolution 1211 outdated. Continuing to apply them would distort assessments of the position, role, and development level of each locality, directly affecting policy-making, resource allocation, and the organization of local government apparatus.

According to the Ministry of Home Affairs, practical implementation of the administrative unit classification provisions under Resolution No. 1211/2025/SCNA15 (amended and supplemented by Resolution No. 27/2022/SCNA15) has revealed several limitations and shortcomings.

First, the classification criteria system is biased, focusing mainly on area, population, and the number of subordinate units, which account for more than half of the total score. Meanwhile, indicators reflecting governance capacity, digital transformation, administrative procedure reform, or labor productivity have not received adequate attention. This has resulted in populous or large-area localities often being classified higher, while smaller but dynamic and reform-oriented localities struggle to improve their classification.

Second, under Resolution No. 1211/2016/SCNA13, the Prime Minister decides on provincial-level classification, the Minister of Home Affairs decides on district-level classification, and the Chairman of the Provincial People’s Committee decides on commune-level classification. Local People’s Committees must prepare dossiers for approval by the corresponding People’s Councils before submission to competent authorities, and then undergo central appraisal. This multi-layered process is time-consuming, costly, and does not clearly reflect the spirit of decentralization and devolution.

Third, Resolution No. 1211/2016/SCNA13 only provides for classification of administrative units in cases of establishment, merger, division, or boundary adjustment, without establishing a mandatory mechanism for periodic review. As a result, many localities “retain their classification” for decades despite significant changes in population, socio-economic development, and governance capacity, making the classification results no longer accurately reflect reality and reducing their utility for policy-making, resource allocation, and motivation for local reform and innovation.

Emphasizing its urgency, the Ministry of Home Affairs stresses that the new Decree will serve as an important legal framework for localities to classify administrative units, thereby guiding socio-economic development policies, attracting investment, improving living standards, and building organizational structures, regimes, and policies for local government officials and civil servants appropriate to each type of administrative unit.

According to the Ministry of Home Affairs, the drafting of the Decree will provide an important basis for:

(1) Planning socio-economic development policies suitable for each type of administrative unit;

(2) Building organizational structures, decentralizing management, and allocating resources (human and financial) in a streamlined, effective, and efficient manner;

(3)Designing remuneration, allowances, and staffing policies for local government officials and civil servants reasonably, fairly, and in accordance with practical conditions.

Ho Chi Minh City and Hanoi are special-class administrative units.

The Ministry of Home Affairs stated that the draft Decree essentially inherits the system of administrative unit (AU) classifications that has been developed and applied stably over a long period. Accordingly, except for Hanoi and Ho Chi Minh City, which are special-class AUs as defined in the Law on Organization of Local Government, other AUs are classified into three categories (Class I, Class II, Class III) based on a scoring system (under 60 points = Class III, 60–75 points = Class II, over 75 points = Class I).

However, the content for urban classification within each AU type has been adjusted to align with current perspectives, principles, and practical context.

(1) Centrally-run cities: Hanoi and Ho Chi Minh City are special-class AUs; other centrally-run cities are Class I AUs. Basis for proposal: According to the Constitution and the 2025 Law on Organization of Local Government, centrally-run cities are regional central urban areas or national development drivers, with strategic importance (Hanoi and Ho Chi Minh City are special-class AUs as defined in the Law on Organization of Local Government).

According to the Ministry of Home Affairs, cities such as Hue, Hai Phong, Da Nang, and Can Tho meet the highest criteria regarding population, area, socio-economic conditions, infrastructure, finance, and governance. Classifying these cities as Class I ensures stability, transparency, reduces administrative procedures, and provides a legal basis for special policies appropriate to their roles.

Provinces are classified into three types (Class I, II, III) based on the total score from five groups of criteria.

(2) Provinces:

The draft Decree stipulates that provinces are classified into three types (Class I, II, III) based on the total score from five groups of criteria:

Population size: maximum 20 points, minimum 10 points;

Natural area: maximum 20 points, minimum 10 points;

Number of subordinate AUs: maximum 10 points, minimum 6 points;

Socio-economic conditions (11 component criteria): maximum 40 points, minimum 18 points;

Special factors: maximum 10 points, minimum 0 points.

Communes are classified into three types (Class I, II, III) based on the total score from four groups of criteria.

(3) Communes:

The draft Decree stipulates that communes are classified into three types (Class I, II, III) based on the total score from four groups of criteria:

Population size: maximum 25 points, minimum 15 points;

Natural area: maximum 25 points, minimum 15 points;

Socio-economic conditions (7 component criteria): maximum 40 points, minimum 21 points;

Special factors: maximum 10 points, minimum 0 points.

(4) Wards: The draft Decree stipulates that wards are classified into three types (Class I, II, III) based on the same four groups of criteria as communes, but the maximum and minimum scores for each criterion are adjusted to suit the particularities of population size, natural area, and socio-economic development level of the ward.

(5) Special zones: For special zones, if they are urban-classified, ward classification standards are applied; in other cases, commune classification standards are applied. The special factor score for a special zone is set at a maximum of 10 points.

(6) Priority points:

In addition to the scoring system based on classification criteria, the draft Decree provides priority points for AUs with exceptional characteristics (provinces or communes with natural area exceeding 300% of the standard; wards with population exceeding 300% of the standard; AUs in particularly difficult areas; or AUs identified as central to socio-economic development of the province/city or inter-communal/ward area). Setting priority points (maximum 10 points) ensures that exceptional and strategically important AUs receive adequate resources for investment, development, and management.