Vietnam spends US$1 billion to support redundant civil servants
The restructuring aims to cut management costs, improve operational efficiency, and boost socioeconomic development.
THE HANOI TIMES — Vietnam has spent VND27 trillion (US$1 billion) to support more than 25,600 government officials made redundant as part of efforts to streamline the political and administrative apparatus, according to data as of June 30.
The Ministry of Home Affairs reported that more than 43,200 officials and civil servants had retired or voluntarily resigned by said date.
This financial support went to officials, public employees, and workers under open-ended contracts affected by organizational restructuring, especially commune-level officials and contractual staff.
Ho Chi Minh City has over 11,000 surplus public employees awaiting job reassignment. Photo: PLO
The government plans to reduce the number of provincial-level public servants by over 18,440 and commune-level staff by over 110,780, compared to the 2022 quotas.
The Ministry of Home Affairs is working with localities on personnel arrangements, benefits, and administrative procedures to avoid delays and internal tensions.
Localities are encouraged to immediately process resignation requests under existing regulations to maintain stability and ensure the rights of affected personnel.
Starting June 12, Vietnam consolidated its provinces and cities from 63 to 34, abolishing the district-level administration. As of July 1, all localities operate under a two-tier local government model.
The restructuring aims to reduce management costs, improve operational efficiency, and promote socioeconomic development.
