Core Viewpoint - Vietnam has initiated a significant administrative reform, reducing its provinces from 63 to 34 and eliminating nearly 628 county-level administrative units, which is seen as a major restructuring effort to streamline governance and reduce fiscal burdens [3][4][10]. Group 1: Administrative Reform Impact - The reform, termed "restructuring the landscape," aims to cut down nearly 100,000 government positions in the short term and potentially 250,000 in the long term, affecting 4% to 10% of the total civil service workforce [4][11]. - The Vietnamese government anticipates saving over 190 trillion VND (approximately 50 billion RMB) from 2026 to 2030 due to these cuts [11]. - The administrative structure will shift from a three-tier system (province-county-village) to a two-tier system (province-village), significantly reducing bureaucratic layers [6][10]. Group 2: Comparison with China's Administrative System - Vietnam's administrative system shares similarities with China's, particularly at the provincial level, but differs in the absence of city-level governance [15][16]. - Post-reform, Vietnam will have 34 provinces, mirroring China's 34 provincial-level administrative regions, which raises questions about the intent behind this structure [17]. - Major cities like Hanoi and Ho Chi Minh City are comparable to China's major cities, with Ho Chi Minh City projected to have a GDP of approximately 69.7 billion USD (around 500 billion RMB) in 2024, accounting for about 15% of Vietnam's total GDP [18]. Group 3: Reasons for Urgency in Reform - Vietnam's GDP growth rate reached 7.52% in the first half of the year, the highest in 15 years, highlighting the need for swift reforms amid global economic uncertainties [23]. - The country aims to become a middle-income nation by 2030 and a high-income nation by 2045, reflecting an ambitious economic vision [24][25]. - The urgency is driven by the diminishing global and demographic dividends, as well as the challenges posed by the fourth industrial revolution, which threatens traditional low-cost labor advantages [26][29].

Core Points - Vietnam's administrative reform aims to enhance efficiency and reduce costs to meet new economic demands, ultimately promoting national development [1][3] - The restructuring will reduce the number of provincial-level administrative units from 63 to 34, including 28 provinces and 6 centrally governed cities [3][4] - The merger of Ho Chi Minh City with surrounding provinces is expected to create a significant economic zone contributing 32% of Vietnam's GDP [3][4] Administrative Restructuring - The reform will eliminate provinces with an area of less than 1,000 square kilometers, such as the merger of Bac Ninh Province with Bac Giang Province [4] - The county-level administrative structure will be officially abolished by July 1, following the recent amendments to the Local Government Organization Law [5] - The number of township-level administrative units is projected to decrease by two-thirds as part of the restructuring [5] Government Institution Streamlining - The Vietnamese government has also streamlined its institutions, reducing the number of ministries from 22 to 17, including the dissolution of the State Capital Management Committee [6] - Approximately 70% of the national budget is currently allocated to civil servant salaries and routine expenditures, limiting funds for critical infrastructure development [6] - Recent approvals for major infrastructure projects, such as the North-South High-Speed Railway, indicate a focus on enhancing transportation efficiency [6]