Vietnam public sector reform decree

In early July 2026 Vietnam announced a decree aimed at curbing wasteful staffing and recruitment in the public sector. By the end of the month the government released Decree No. 299/2026, providing a comprehensive legal framework for public service units. The decree sets out detailed procedures for creating, reorganising, dissolving, transferring, classifying, ranking and granting financial autonomy to these units. New units must meet sector planning and legal criteria and receive regular budget funding, except those delivering essential basic services. Reorganisation funded by the state budget cannot increase the number of salary recipients, and any merger of financially autonomous units requires an authority‑approved decision on the resulting autonomy level. Transfers must preserve the unit’s original state‑owned status. The overall aim is to standardise governance, improve efficiency and ensure fiscal responsibility across Vietnam’s public service sector.