A government document dated 24/8 concerning administrative unit restructuring and the two-tiered local government model reveals that some officials are exploiting policies under Decrees 178 and 67. This exploitation, reported by ministries and local authorities during the process of settling benefits for officials, undermines the effectiveness and intended purpose of the streamlining policy.

The Steering Committee has directed agencies to strictly implement policies and accurately identify those eligible for early retirement, linking it to downsizing efforts. Unit leaders will be held accountable for any instances of work avoidance or policy exploitation. Violations will be dealt with seriously.

Civil servants working at the Da Nang Administrative Center, May 2025. Photo: Nguyen Dong

At a government meeting on 22/8, Minister of Home Affairs Pham Thi Thanh Tra stated that the early retirement policy will conclude on 31/8. The Ministry has urged localities to carefully review applications, preventing widespread approvals, and retain competent personnel to ensure workforce quality.

As of 19/8, 94,000 individuals nationwide have received termination decisions, with 82,000 having retired or resigned and over 50,000 having received severance payments. By the end of August, an estimated 6,000-7,000 more people are expected to retire under Decree 178, bringing the total number of early retirees to 100,000.

Following the restructuring, the country will have 34 provinces and cities with 3,321 communes, wards, and special zones. Staffing will be reduced by approximately 18,400 at the provincial level, 110,700 at the communal level, and 120,500 non-professional staff. The entire two-tiered government system is projected to have nearly 91,800 provincial officials and 199,000 communal staff.

The Ministry of Home Affairs estimates that from 2026-2030, the budget will save approximately 190,500 trillion VND due to reduced staffing and administrative costs. Conversely, the budget must allocate 128,480 trillion VND between 2025 and 2030 for severance and early retirement benefits, including allowances, social insurance, and related expenses.

Vu Tuan