This morning (6.17), in Hanoi, the Central Propaganda and Mass Mobilization Committee coordinated with the Central Organizing Committee, the Ministry of Foreign Affairs, the Ministry of Home Affairs, and the National Assembly's Judicial Committee to organize an international press conference to officially announce the Decision to operate the new apparatus of Vietnam according to the 2-level local government organization model from July 1, 2025.
Speaking to the press at the press conference, Mr. Ho Sy Hung - Deputy Minister of Finance - said that streamlining the payroll and reorganizing the public sector is currently very necessary and has shown clear results in Vietnam. However, streamlining is not the ultimate goal, but towards a larger goal.
"That is to build a 2-level local government model in sync with the restructuring of the apparatus and reforming the management mechanism, to reduce intermediate levels, move to a model of a creativity government, proactively serving the people and supporting the development of the private enterprise sector" - Mr. Hung said.
According to Mr. Hung, the arrangement of the apparatus with the new management mechanism is the result of a very careful preparation process. Vietnam has issued 28 decrees on decentralization and delegation of authority immediately after the National Assembly passed resolutions on the arrangement of administrative units. This is a testament to the proactiveness and methodical approach to reform.
Mr. Hung emphasized that although there are changes in administrative boundaries or organizational structure, it is important that these changes do not increase difficulties for the investment and business environment.
On the contrary, the arrangement has created a larger space for socio-economic development, with administrative units of strong enough scale to connect infrastructure, economy, and business more conveniently, while optimizing resources on a wider scale.
In parallel with the reorganization of the apparatus, the management mechanism is also being adjusted in the direction of shortening the process and reducing the cost of compliance with administrative procedures. The Government aims to reduce at least 30% of procedures, strongly decentralize to the grassroots level - where people and businesses are directly exposed to and handled. This not only clarifies responsibility and increases transparency, but also improves the operational efficiency of the apparatus and service quality.
In particular, the reform process is also associated with digital transformation. Many administrative procedures will be handled through electronic platforms and a "one-stop" mechanism, helping to save time and costs, while creating fundamental changes in more modern state management methods.
"It is necessary to emphasize that streamlining or streamlining the apparatus is not to make it difficult for investors, but on the contrary, it creates more motivation and expectations from businesses, especially foreign investors" - Mr. Hung said.
Statistics for the first 5 months of 2025 show that the total newly registered and adjusted capital of foreign investors reached more than 18.38 billion USD, an increase of about 51.2% over the same period in 2024 - right at the time when Vietnam is preparing and implementing the restructuring of the apparatus and innovation of management mechanisms. This, according to Mr. Hung, is a clear demonstration of investors' confidence and expectations for Vietnam's reform future.
