Data compiled from central and local agencies shows that as of 30/6, 43,207 people have retired or resigned. Of these, 25,611 have received severance pay, totaling 26,947 billion VND (reaching 63%, excluding military and police personnel).

The Ministry of Home Affairs assesses that the decrees and guidelines issued regarding severance pay for those leaving due to streamlining are "sufficient and prominent".

Previously, the Prime Minister repeatedly requested agencies to complete severance payments for officials and employees laid off due to restructuring before 30/6.

After the merger, the country has 28 provinces and 6 centrally-run cities, along with 3,321 communes, wards, and special zones. This merger is estimated to reduce over 18,400 positions at the provincial level, 110,700 at the commune level, and 120,500 part-time positions at the commune level. The entire two-tiered local government system is expected to have 91,784 officials and public employees at the provincial level and 199,000 at the commune level.

Public employees of Hai Chau ward, Da Nang city center, work at the Public Administration Service Center as the city conducts a two-tiered government trial in several communes and wards, 24/6/2025. Photo: Nguyen Dong

The Ministry of Home Affairs estimates that the total budget savings from 2026-2030 will be 27,600 billion VND due to the reduction of provincial officials, 128,700 billion VND from the reduction of commune officials, and 34,000 billion VND from the reduction of part-time commune staff. Therefore, the total savings in salaries and administrative expenses will be 190,500 billion VND from 2026-2030.

The estimated budget needed is 22,139 billion VND for 18,449 provincial officials taking severance or early retirement, equivalent to 1.2 billion VND per person; and 99,700 billion VND for those at the commune level. The cost of social insurance contributions for those taking early retirement without a reduction in their pensions is 6,600 billion VND.

The total estimated budget from 2025-2030 for severance and early retirement due to the merger of administrative units is 128,480 billion VND.