Streamlining the Organizational Apparatus and Promoting the Decentralization and Delegation of Authority

Prime Minister Pham Minh Chinh presented in the 10th session of the 15th National Assembly on the socio-economic plan of 2025, the 5-year span 2021-2025 and the projected plan for 2026. Among the remarkable results achieved was the decisive and effective implementation of streamlining the organizational apparatus and promoting the two-tier local government in accordance with the decentralization and delegation of authority.

Regarding limitations, shortcomings, difficulties, and challenges, the Government’s report also pointed out that the streamlining and restructuring of the organizational apparatus and the establishment of the two-tier local government system are complex tasks implemented on a large scale and within a short timeframe, with high requirements, leading to some confusion and a lack of uniformity in certain localities.

The summary report on the implementation of the 2025 and the 2021-2025 socio-economic development plans, and the projected 2026 plan, presented by Prime Minister Pham Minh Chinh at the opening session of the 10th sitting of the 15th National Assembly, also stated that from now until the end of 2025, the Government will resolutely streamline and reorganize public service units, state-owned enterprises, and internal organizations within the state administrative system.

Accordingly, after the streamlining and restructuring, the Government’s organizational structure will comprise 14 ministries and 3 ministerial-level agencies, representing a reduction of 5 ministries or ministerial-level agencies and 3 agencies under the Government.

A total of all 13 general departments and equivalent entities have been abolished; 519 departments and equivalent entities have been reduced (down 77.6%); 219 divisions and equivalent entities reduced (down 54.1%); 3.303 sub-departments and equivalent entities reduced (down 91.7%); and 203 public service units reduced (down 38%). Staffing at ministries and central agencies has decreased by about 22.000 persons, equivalent to roughly 20%.

The staffing of the state administrative sector has been reduced by 145.000 persons, and regular expenditures have decreased by 39 trillion VND per year.

A shift has been made from administrative management to serving the people and facilitating development.

The operation of the two-tier local government system has gradually become more orderly. The two-tier government structure now remains in 34 provinces and centrally-run cities (a reduction of 29 at the provincial level), with 3.321 communes, wards, and special administrative units (a reduction of 6.714 at the commune level, equivalent to nearly 66.9%).

A total of 142.746 persons have received decisions on resignation, of whom 105.056 (73,6%) have received payments under applicable policies and benefit schemes.

The Government’s report also noted that amid the complex and unpredictable global situation, with many developments beyond forecast — particularly the severe aftermath of the COVID-19 pandemic [1] — and with domestic conditions generally presenting more difficulties and challenges than opportunities and advantages, Viet Nam has nevertheless, through strong determination, great effort, and decisive action, achieved and exceeded 22 out of 26 major socio-economic targets, nearly met 2 out of 26 targets [2], including exceeding all targets related to society and social security. In 2024 and 2025, all 15 out of 15 socio-economic targets were achieved or surpassed. Eight key results stand out as follows:

First, Viet Nam successfully controlled and effectively overcame the COVID-19 pandemic with the spirit of “placing the people’s health and lives above all else,” earning international recognition and high appreciation.

First and foremost, there was a shift in the pandemic response mindset toward closely combining vaccination efforts with administrative measures. Viet Nam strengthened diplomatic activities and decisively implemented the nationwide free COVID-19 vaccination campaign, enabling the country to “move from behind to ahead” and rank fifth globally in vaccination coverage. The mortality rate in Viet Nam was about 0,37%, significantly lower than the global average of 1%.

Second, Viet Nam promptly shifted its approach to safely, flexibly, and effectively adapt to and control the COVID-19 pandemic, thereby reopening early to foster economic development. A total of 119 trillion VND was provided in support to more than 68,4 million workers and over 1,4 million employers. Tax, fee, and charge exemptions, reductions, and deferrals for citizens and enterprises amounted to 580 trillion VND. Additionally, 23,3 thousand tons of rice were allocated, and the Socio-Economic Recovery and Development Program was promptly formulated and implemented with a total disbursement of over 265 trillion VND.

Second, Viet Nam’s economy has demonstrated strong resilience to external shocks, maintaining one of the highest growth rates in the world.

GDP in 2025 is projected to grow by over 8%; the average growth rate for the 2021–2025 period is estimated at 6,3%, higher than the previous term (6,2%). In 2021, due to the impact of the COVID-19 pandemic, growth reached only 2,55%; however, during the four-year period from 2022 to 2025, the average annual growth rate is expected to reach 7,2%, exceeding the target of 6,5–7%.

The size of the economy is projected to increase from USD 346 billion in 2020 to 510 billion USD in 2025, rising five places to rank 32nd in the world. GDP per capita in 2025 is estimated at around 5.000 USD — 1,4 times higher than in 2020—placing Viet Nam among upper-middle-income countries. The economic structure and growth quality have shown positive transformation.

The macroeconomy has remained fundamentally stable; inflation has been kept below 4%, and the major balances of the economy have been maintained.

State budget revenue is estimated at VND 9,6 quadrillion, 1,36 times higher than the previous term and far exceeding the target of 8,3 quadrillion VND, while tax, fee, and charge exemptions, reductions, and deferrals amounted to about 1,1 quadrillion VND. Additional revenue and expenditure savings reached 1,57 quadrillion VND. The foreign exchange market has remained largely stable, and the average lending interest rate has decreased by 2,5% compared with 2022.

Public debt has declined from 44,3% of GDP in 2020 to around 35–36% in 2025 (well below the ceiling of 60% of GDP). The average state budget deficit has fallen from 3,53% of GDP in the 2016–2020 period to 3,1–3,2% of GDP in the current term.

FTSE has upgraded Viet Nam’s stock market from a frontier market to a secondary emerging market. To date, approximately one million enterprises are in operation, an increase of over 20% compared with 2020. Prestigious international organizations have highly valued Viet Nam’s governance results, credit rating improvements, and growth prospects — the IMF ranks Viet Nam among the world’s top 10 fastest-growing economies, while Standard Chartered projects Viet Nam to be among the five fastest-growing economies in Asia.

Traditional growth drivers have all proven effective. Total social investment capital accounts for about 33,2% of GDP, meeting the target range of 32–34%. Public investment capital is estimated at around 3,4 quadrillion VND, up nearly 55% (an absolute increase of VND 1,2 quadrillion) compared with the previous term. Investment has become more focused, with the number of projects funded by the central government budget reduced from 11.000 in the previous term to 4.600 in the current one.

Total foreign direct investment (FDI) reached 185 billion USD, up nearly 9% from the previous term, placing Viet Nam among the world’s top 15 developing countries in attracting FDI. Trade volume expanded sharply from 545,4 billion USD in 2020 to a record high of about 900 billion USD in 2025, ranking Viet Nam among the world’s top 20 trading nations. The trade surplus rose to 88,3 billion USD, more than double that of the previous term.Tourism has recovered strongly, with about 22–23 million international arrivals in 2025 — the highest figure ever recorded. The Government has taken strong measures to combat smuggling, trade fraud, and intellectual property infringements.

Third, the three strategic breakthroughs have been implemented decisively and effectively, opening up new space and fostering development.

Law-making and law enforcement have been renewed in both mindset and approach, with many “bottlenecks” promptly removed. The Government submitted to the Politburo for issuance a number of breakthrough resolutions on guidelines, institutions, and policies; submitted to the National Assembly for adoption more than 180 laws, ordinances, and resolutions; and promulgated 820 decrees — the highest number ever issued in a single term.

Administrative procedures have been drastically reformed, with nearly 4,3 thousand business regulations, administrative procedures, and citizen documents cut or simplified.

Infrastructure has undergone a breakthrough development, with numerous large-scale, modern projects featuring strong connectivity, spillover effects, and long-term significance. By the end of 2025, 3.245 km of expressways are expected to be completed (exceeding the target of 3.000 km), along with 1.711 km of coastal roads (exceeding the target of 1.700 km). Phase 1 of Long Thanh International Airport — Viet Nam’s first 4F-standard airport — is expected to be substantially completed, while new ring roads, urban railway lines, seaports, and airports have been put into operation.

The 500 kV transmission lines Quang Binh – Hung Yen and Lao Cai – Vinh Yen were completed to high quality standards within a record-short period. Cultural and social infrastructure has been strongly developed, with public–private partnerships established to build the Viet Nam Exhibition Center (VEC), which ranks among the world’s top ten.The labor structure has shifted positively: the share of agricultural workers has fallen from 28,3% in 2020 to 25% in 2025, while the proportion of trained workers has increased from 64,5% to 70% over the same period.

A program to train 100.000 semiconductor and artificial intelligence engineers by 2030 has been implemented. Labor productivity growth across the entire economy in 2025 is estimated at 6,85%, surpassing the target of 6,5% per year.

Fourth, science and technology, innovation, and digital transformation have been vigorously implemented, yielding important initial results.

The National Innovation Center and the National Data Center have come into operation and are proving effective. Viet Nam ranked 44th out of 139 countries and territories in the Global Innovation Index 2025.

Digital infrastructure has expanded rapidly and extensively, with 100% of communes and wards covered by fiber-optic broadband, and mobile internet speeds ranking among the world’s top 20.

E-commerce has grown rapidly, averaging 20% per year. Significant progress has been made in developing digital government, the digital economy, and digital society. Project 06 has brought about a fundamental transformation in public service delivery for citizens and enterprises, saving around 3.000 billion VND annually in social costs.

Viet Nam’s E-Government Development Index in 2024 ranked 71st out of 193, up 15 places compared with 2020. A program to cultivate one million hectares of high-quality, low-emission rice in the Mekong Delta has been implemented.

Fifth, many long-standing and delayed projects have been decisively addressed, yielding positive results and helping unlock resources for development.

The Government has submitted to the Politburo for guidance on handling five weak banks (four commercial banks and the Development Bank, which have now stabilized and are operating effectively), along with 12 loss-making projects and enterprises, and several long-delayed major energy projects such as Song Hau 1, Long Phu 1, Thai Binh 2, BOT Van Phong 1 power plants, the Nghi Son Refinery, O Mon gas power project, and Block B gas field. Đã trình Bộ Chính trị cho ý kiến xử lý 05 ngân hàng yếu kém (04 ngân hàng thương mại và Ngân hàng Phát triển đã hoạt động ổn định, hiệu quả), 12 dự án, doanh nghiệp thua lỗ và các dự án năng lượng quan trọng tồn đọng kéo dài được giải quyết (như các dự án Nhà máy điện Sông Hậu 1, Long Phú 1, Thái Bình 2, BOT Vân Phong 1, Nhà máy lọc dầu Nghi Sơn, điện khí Ô Môn, mỏ khí Lô B…).

Bottlenecks have been removed, enabling nearly 1.200 projects with a total value of 675 trillion VND to resume production and business operations. The Government is directing the review, classification, and submission to competent authorities for continued handling of nearly 3.000 projects of various types, with total investment worth trillions of dong and land areas covering hundreds of thousands of hectares.

Sixth, the cultural and social sectors have made progress in terms of awareness, action, and outcomes, with people’s living standards significantly improved.

The cultural and entertainment industries are on a growth trajectory, with 10 of Viet Nam’s cultural heritages recognized and inscribed by UNESCO.

The Human Development Index (HDI) has risen by 18 places, ranking 93rd out of 193 countries and territories.

The network of medical facilities has expanded significantly; the quality of healthcare services has improved; and health insurance coverage has increased from 90,2% in 2020 to 95,2% in 2025.

Education quality has improved, with many higher education institutions climbing in reputable international rankings. All 194 Vietnamese students participating in international Olympic competitions have won awards.

Tuition exemption and support will be provided from preschool to upper secondary levels starting from the 2025–2026 academic year. Lunch support is offered to preschool children at boarding nurseries in ethnic minority and disadvantaged areas, as well as to primary and lower secondary students in border communes. Several localities with sufficient resources have also introduced their own support programs. Funding has been allocated to build 248 modern boarding and semi-boarding inter-level schools in mainland border communes, with 100 of them to be completed before the 2026–2027 school year.

Policies for people with meritorious service, social security, and poverty reduction have been comprehensively implemented, achieving notable results under the spirit of “leaving no one behind.”

During the 2021–2025 period, 1,1 quadrillion VND has been allocated for social security (accounting for 17% of total state budget expenditure), along with nearly 700.000 tons of rice distributed to disadvantaged people. Regular social assistance has been expanded to cover more than 3,5 million people with meritorious service and vulnerable groups. The multidimensional poverty rate has fallen from 4,4% in 2021 to 1,3% in 2025.

Average monthly income of workers has increased from 5,5 million VND in 2020 to 8,3 million VND in 2025.

The goal of basically eliminating temporary and dilapidated housing has been completed 5 years and 4 months ahead of schedule, with more than 334.000 houses built. A total of 633.000 social housing units are under construction, with a target of completing 100.000 units in 2025.

The Viet Nam Bank for Social Policies has provided loans to more than 10,6 million poor households, near-poor households, and policy beneficiaries, with a total value of VND 517 thousand billion, including 22,1 thousand billion VND for social housing loans.

Disaster prevention and control, climate change response, natural resource management, and environmental protection have been prioritized; 47 thousand billion VND has been spent on disaster prevention and post-flood recovery. Viet Nam’s Sustainable Development Index ranks 51st out of 165 countries, up 37 places compared with 2016.

Major national celebrations — the 70th anniversary of the Dien Bien Phu Victory, the 50th anniversary of the Liberation of the South and National Reunification, the 80th National Day (2 September), and the exhibition “80 Years of Independence – Freedom – Happiness” — were organized successfully, strongly inspiring patriotism, unity, and national pride.

Under the decision of the Politburo and General Secretary To Lam, nearly 11 thousand billion VND was allocated to present gifts to all citizens on the occasion of the National Day (2 September). According to the United Nations, Viet Nam’s Happiness Index in 2025 ranked 46th, up 37 places from 2020 (83rd).

Seventh, the streamlining and restructuring of the Government’s organizational apparatus and the two-tier local government system have been implemented decisively and effectively, in parallel with promoting decentralization and delegation of authority.

The staffing of the state administrative sector has been reduced by 145.000 persons, and regular expenditures have fallen by 39 thousand billion VND per year. The operation of the two-tier local government has gradually become more orderly, with a shift from administrative management toward serving the people and facilitating development.

Inspection, supervision, and efforts to prevent and combat corruption, wastefulness, and negative practices have been intensified. Nearly 425 thousand billion VND and 2.200 hectares of land have been recommended for recovery. Strict actions have been taken to handle and reclaim money and assets from corruption and economic cases, totaling nearly 13,6 thousand billion VND and 520.000 USD, with assets valued at nearly 438 thousand billion VND seized.

Eighth, national defense and security capabilities have been consolidated and strengthened; national independence, sovereignty, and territorial integrity have been firmly safeguarded; and social order and safety have been ensured.

Resources have been prioritized, expenditures economized, and revenues increased to enhance defense and security capacity, ensuring self-reliance. Several important types of weapons have been domestically produced. Significant progress has been achieved in combating crime, while peacekeeping and international rescue and relief missions have been successfully fulfilled.

Foreign affairs and international integration have been bright spots. Economic diplomacy has yielded substantial results, and Viet Nam’s international reputation and standing have been further elevated. Viet Nam has been re-elected to the United Nations Human Rights Council for the 2026–2028 term and has established comprehensive, strategic, and comprehensive strategic partnerships with 38 countries, including all five permanent members of the UN Security Council and 17 G20 members.

Overall, despite numerous difficulties and challenges, the results achieved in 2025 and throughout the 2021–2025 period are highly commendable and a source of pride. Each year has been better than the previous one, and this term has outperformed the last across nearly all areas. Notably, the country has maintained both “domestic harmony and external stability,” earning high appreciation from the people and the international community. These accomplishments have continued to foster a trend of renewal, laying the foundation for rapid and sustainable development, generating inclusive and comprehensive growth momentum, creating a strong spirit for entering a new era, and further strengthening the people’s firm trust in the Party and the State.