# Vietnam administrative and public sector restructuring

> Live situation record from CLSTR: https://clstr.news/situations/vietnam-administrative-and-public-sector-restructuring
> Updated: 2026-10-04T05:36:25.000Z. Sources: 5. Developments: 2.

Vietnam has initiated a large-scale administrative restructuring aimed at streamlining local governance and public sector staffing.

In late September 2026, the Ministry of Home Affairs reported the completion of a major reorganization of local residential units. Across 34 provinces and cities, the number of villages and residential groups was reduced by 46.33%, falling from 89,589 to 48,078 units. This process involved significant personnel adjustments, including the elimination of 103,146 village-level positions and the transition of several thousand workers into civil servant or public employee roles.

Building on these local changes, the government has outlined a broader plan for the 2027–2031 period. Following a Politburo conclusion, the state aims to reduce the total number of civil servants and public employees by 5% to 10%. The Ministry of Home Affairs is tasked with finalizing a framework to determine staffing quotas from the central level down to local communes. 

Specific regional strategies are emerging, such as in Ho Chi Minh City, where staffing allocations may exceed central targets by up to 20% if tied to service efficiency. Additionally, the government is reviewing the reorganization of public service sectors, including healthcare and education. The Ministry of Education and Training noted that school restructuring has already resulted in a 50.6% reduction in the number of schools.

## Timeline

### 2026-10-04: Vietnam to reduce administrative staffing by 5–10% through 2031

Vietnam plans to reduce administrative staffing by 5–10% during the 2027–2031 period as part of a broader effort to streamline the public sector and reorganize service units.

3 sources. https://clstr.news/cluster/vietnam-to-reduce-administrative-staffing-by-510-through-2031

### 2026-09-25: Vietnam completes major administrative restructuring of villages and residential groups

Vietnam has reduced its number of villages and residential groups by over 46%, cutting 41,511 units through administrative restructuring. Social insurance revenue reached 452 trillion VND in eight months.

3 sources. https://clstr.news/cluster/vietnam-completes-major-administrative-restructuring-of-villages-and-residential-groups

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Cite as: Vietnam administrative and public sector restructuring. CLSTR, https://clstr.news/situations/vietnam-administrative-and-public-sector-restructuring