Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities

In June 2024, Vietnam marked the biggest administrative reform in its modern history: consolidating 29 provinces and reducing the total number of provincial-level units from 63 to just 34. But this is not the end. As 2025 approaches, Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities continues to shape the country’s governance, budget allocation, and service delivery model.

What changes are coming in 2025? How will this reform affect citizens and businesses?

Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities

What’s new in Vietnam’s provincial mergers in 2025?

The first wave of mergers in 2024 saw the removal of all intermediate district-level structures, shifting to a streamlined two-tier system: Province – Commune.

For 2025, policymakers are assessing the next stage of Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities, based on three criteria:

• Population density and administrative efficiency

• Geographic and infrastructural integration

• Government spending reduction potential

If continued, the next phase may bring further consolidation to rural or low-density provinces – all while maintaining service continuity and social stability.

Workforce restructuring – a people-centered approach

More than 250,000 positions were reduced in 2024, including:

• 130,000 government officials and civil servants

• 120,000 part-time commune-level personnel

Unlike rigid cutbacks, Vietnam’s provincial mergers follow a humane transition model:

• Voluntary retirement with financial incentives

• Role reassignment where skill sets match demand

• Reskilling and job transition to the private sector

The 2025 phase is expected to follow similar principles, focusing on support rather than disruption.

Will citizens and businesses be affected?

One of the top concerns in Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities is whether administrative documents will be impacted.

The answer: No.

• Tax codes, business registration numbers, and company seals remain valid

• ID cards, household registration, health and social insurance are unaffected

• Existing applications and cases continue processing without resets

All address changes will be automatically updated in the national system – no re-submission required.

VND 190 trillion saved – Where will the money go?

Between 2026 and 2030, Vietnam expects to save over VND 190 trillion from:

• Reduced salary and operational costs

• Elimination of district-level bureaucratic layers

• Lower administrative overhead

This will be reinvested in:

• Public infrastructure upgrades in newly merged provinces

• Administrative digitalization and e-government systems

• Improving citizen and business service experience

• Socio-economic stabilization in merged areas

Vietnam’s provincial mergers aren’t just about cutting – they are about reinvesting for long-term efficiency.

Vietnam’s Provincial Mergers: Consolidation from 63 to 34 Provinces and Cities represent a fundamental restructuring of governance. It’s not just about geography – it’s about people, budgets, and public services.

Citizens and businesses can rest assured: procedures remain stable, services are improving, and the state is moving toward leaner, smarter governance.

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