Vietnam's National Assembly on Tuesday approved a bold bureaucratic reform plan that will slash up to a fifth of government bodies, as the country tries to cut costs and improve administrative efficiency.
The number of government ministries will be reduced to 14 from the current of 18, to be up and running from March 1, the assembly said in a statement.
More than 97% of the lawmakers present approved the plan.
The assembly earlier on Tuesday passed an amendment to a law on organising government, paving the way for approval of the planned cull of 15% to 20% of the state apparatus, which will also include four agencies and five state television channels, among other cuts.
The move would "not only save money for the state budget but more importantly, boost the efficiency of the system", General Secretary of Vietnam's ruling Communist Party, To Lam, told parliament last week.
Investors, diplomats and officials have broadly welcomed the plan but expect some administrative delays in the short term in Vietnam, a regional industrial hub that relies heavily on foreign investment.
The government has said the overhaul would not impact project approvals.
The planning and investment ministry, which approves foreign investment projects, will join the finance ministry, while the transport ministry and the construction ministry will be merged.
The natural resources and environment ministry and the agriculture ministry will also be merged.
Lawmakers on Tuesday ratified the appointment of two new deputy premiers, including the incumbent investment minister. That will increase the number of deputy prime ministers from five to seven.
The plan coincides with similar post-pandemic government cost-cutting measures being implemented or pledged across the world, including by Argentina's libertarian President Javier Milei and U.S. President Donald Trump.
Vietnam's state media last month reported the restructuring would affect 100,000 state officials. It did not elaborate.
"Poor-performing employees must be removed from the system," it quoted Deputy Prime Minister Nguyen Hoa Binh, as saying.
"State agencies must not be safe shelters for incompetent officials."
European leaders are planning high-level visits to Vietnam in the coming months as part of a concerted effort to deepen ties with the Southeast Asian nation amid rising trade tensions with the United States.
The Vietnamese government has approved funding of 12.8 trillion VND ($500 million) to build a small-scale semiconductor chip manufacturing plant, with the goal of developing a domestic chip industry and ensuring supply chain resilience.
Vietnam’s National Assembly will vote on raising the country’s economic growth target and approving key infrastructure projects, including a rail link to China and nuclear power development.
Vietnam’s capital, Hanoi, has been ranked the world’s most polluted city by the Air Quality Index. Thick smog is sparking growing concerns among both residents and visitors.
Vietnam welcomes Aeroflot’s first-ever direct flights from Moscow to Nha Trang starting in March.
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World leaders welcomed the 30-day ceasefire proposal that Ukraine has agreed to, calling it a step toward ending the conflict with Russia.
In Tuesday’s closely watched parliamentary election, Greenland’s pro-business opposition Demokraatit party took a commanding lead after over 90% of the ballots were counted.
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BioNTech forecasts a revenue decline for 2025, expecting between 1.7 billion and 2.2 billion euros, down from 2.75 billion euros last year. This drop is due to Pfizer write-downs and stable vaccination rates. BioNTech also plans significant job cuts and new hires.
U.S. President Donald Trump signed an order cutting funding to Voice of America’s parent agency, forcing staff out.
Crowds in Aleppo and Damascus celebrated 14 years since the Syrian uprising that ousted Bashar al-Assad.
U.S. airstrikes on Yemen’s capital killed nine civilians as President Trump vowed to pressure Houthi rebels to halt maritime attacks.
Thousands protested in Tel Aviv, urging the government to negotiate a hostage deal and a ceasefire with Hamas.
Hundreds gathered outside the proposed site of China’s new London embassy, citing security concerns and opposition to the regime.
U.S. President Donald Trump signed an order cutting funding to Voice of America’s parent agency, forcing staff out.
Crowds in Aleppo and Damascus celebrated 14 years since the Syrian uprising that ousted Bashar al-Assad.
U.S. airstrikes on Yemen’s capital killed nine civilians as President Trump vowed to pressure Houthi rebels to halt maritime attacks.
Thousands protested in Tel Aviv, urging the government to negotiate a hostage deal and a ceasefire with Hamas.
Hundreds gathered outside the proposed site of China’s new London embassy, citing security concerns and opposition to the regime.
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