Up Next for Vietnam: Merged Provinces, Judicial Reform

February 21, 2025

Up Next for Vietnam: Merged Provinces, Judicial Reform

As Vietnam continues its government restructuring, including the merging of several key ministries, the country is signaling that mergers of provinces could be next. Conclusion 126-KL/TW of the Politburo and Secretariat, issued on February 14, 2025, sets out several tasks for continuing to streamline the political system in 2025, notably including, among others, the following:

Elimination of intermediate administrative levels, and mergers of provincial units: The Government Party Committee is tasked with researching and planning for the elimination of intermediate administrative levels (district levels); reorganizing the commune level with structures, functions, duties, powers, and responsibilities aligned with the new organizational model; and proposing the merging of some provincial administrative units. A report to the Politburo is required by Q3 2025.
Reorganization of police structure: The Central Public Security Party Committee is tasked with leading and coordinating the implementation of a three-tier police organization, eliminating the district-level police.
Judicial system reforms: The Central Party Committees of the Supreme People’s Court and the Supreme People’s Procuracy are tasked with researching and advising on the organizational model for courts and procuracies, and proposing amendments and supplements to relevant party mechanisms and state laws, with the aim of eliminating the district level. A report to the Politburo is required by Q2 2025.

Implications of Merging Provinces

The merging of provinces could bring positive impacts as well as new challenges. The expected benefits include:

Administrative efficiency and cost saving: Reducing the number of administrative units could lead to more efficient governance and decision-making processes, as well as lower administrative costs due to fewer government offices and personnel.
Economic development: Larger administrative areas can benefit from better allocation of resources and infrastructure development. Larger provinces may also attract more investment due to increased economic potential and market size.
Improved service delivery: Public services could improve due to better resource management.

However, while the results of the streamlining are expected to be positive, the process itself could introduce additional challenges as agencies and organizations attempt to transform “on the fly,” with minimal disruption to ongoing activities. Changes in laws and regulations as well as organizational restructuring at all levels and among public and private sectors will need to be handled quickly—a process that is typically deliberate and time-consuming. In addition, thorough inspections and monitoring will be needed from both government and the private sector to ensure compliance with the new regulations and address any arising issues.

As a result, companies can expect some confusion and delays, at least in the early stages of restructuring, with regard to licensing and other government-related matters.

Impact of Judicial System Reforms

The judicial system reforms outlined in Conclusion 126-KL/TW will have several impacts on legal proceedings:

Streamlined court structure: With the elimination of district courts, legal proceedings will be handled by higher-level courts, potentially leading to more consistent and standardized rulings. Streamlining the court structure may reduce administrative overhead and improve the efficiency of legal proceedings.
Improved quality of operations: Continued innovation and improvements in court and procuracy operations will enhance the quality of legal proceedings. Changes aimed at meeting judicial reform requirements will help ensure that legal proceedings are fair, transparent, and efficient.
Updated legal framework: Proposed amendments and supplements to relevant laws and regulations relating to judicial reform will provide a clearer and more predictable legal framework for proceedings. This may involve changes in procedures and protocols.

These points highlight the ongoing efforts to streamline the political system, ensuring efficiency and adherence to party directives.

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Long Gia Nguyen

Vietnam

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February 20, 2025

Lexology Panoramic: Foreign Investment Review 2025 – Vietnam

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Lexology Panoramic: Foreign Investment Review 2025 – Laos

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