Vietnam’s New Era of Governance: Key Reforms Effective 1 July 2025

Overview

Vietnam’s Vision: “Radiant Vietnam” and Upcoming Reforms

To mark the 95^th anniversary of the Communist Party of Vietnam (“CPV“) on 3 February 2025, General Secretary To Lam published “Rạng rỡ Việt Nam” (Radiant Vietnam).^[1] The article celebrates Vietnam’s ongoing progress and CPV-led unity, directly aligning with the CPV’s vision for a prosperous, democratic, equitable, and civilised nation by 2045, to be achieved through modernised governance and robust economic growth.

Core Pillars of Vietnam’s Reform Agenda

General Secretary To Lam’s address emphasises several key areas of reform: 

1. Party leadership and public trust: Reaffirming the CPV’s central role and unwavering commitment to serving the people.

2. Comprehensive institutional reform: Streamlining laws and administration, fostering transparency, and protecting private property rights to cultivate a favorable business environment.

3. Private sector empowerment: Elevating the private economy as a crucial driver of national development.

4. Technological advancement: Highlighting science, technology, innovation, and digital transformation as fundamental to industrialisation and modernisation.

5. Proactive global integration: Deepening international partnerships and actively participating in the global economy for sustainable growth.

6. Clean and strong political system: Continuously building a pure, capable, and trustworthy Party and political system.

Continuing the Đổi Mới Spirit: Governance Reforms Effective 1 July 2025

The principles outlined in “Rạng rỡ Việt Nam” are at the core of Vietnam’s 2025 reforms, which seek to streamline governance and legal frameworks for enhanced economic growth and global integration. Recent significant changes, such as the issuance of Resolution 68 on private sector development and Resolution 66 on legal and judicial reform, exemplify this commitment. These efforts extend the Đổi Mới (Renovation) spirit from 1986, modernising governance while preserving CPV control – a balance subtly highlighted in the article. For more details on Resolutions 68 and 66, please refer to our May 2025 Legal Update titled “Vietnam Advances Private Sector Development Policy” and June 2025 Legal Update titled “Vietnam’s New Era and Ongoing Legal and Judicial Reform“, respectively.

Continuing Vietnam’s transformation, this Update now focuses on a new chapter of Vietnam in governance taking effect from 1 July 2025. The reforms defining this new chapter of governance are set out in CPV’s Resolution 60-NQ/TW (“Resolution 60“) issued on 12 April 2025 at the 11^th Conference of the 13^th Central Committee. Resolution 60 details a comprehensive plan to reorganise Vietnam’s administrative structure, including merging provinces and restructuring local governance. The goal is to streamline the political system, enhance efficiency, and boost economic development, directly supporting General Secretary To Lam’s overarching “Radiant Vietnam” vision.

Mergers of Vietnam Cities and Provinces 

Vietnam’s Administrative Reorganisation: A Landmark Reform

On 12 June 2025, Vietnam’s National Assembly passed Resolution No. 202/2025/QH15 (“Resolution 202“), which took effect immediately after being signed by Chairman Tran Thanh Man. This landmark policy mandates a historic June 2025, Vietnam’s reorganisation of Vietnam’s provincial administrative units, aligning with the CPV’s vision of a streamlined, efficient governance system. This reform aims to enhance economic and social development.

Key Changes and Implementation

Resolution 202 reduces the number of provincial-level units from 63 to 34, comprising 28 provinces and 6 cities. These new administrative units will be officially operational from 1 July 2025. Under Resolution 202, 19 provinces and four cities have been formed through mergers, while 11 units (provinces: Cao Bằng, Điện Biên, Hà Tĩnh, Lai Châu, Lạng Sơn, Nghệ An, Quảng Ninh, Thanh Hóa, and Sơn La; cities: Hà Nội, and Huế) remain unchanged. A significant change is the elimination of district-level governance, establishing a two-tier system (provincial and commune levels).

Further details illustrating Vietnam’s reorganisation of provincial administrative units under Resolution 202 are available on the Government’s Policy and Law Making Gateway (link here). Ministries, agencies, localities, organisations and individuals can also access the Geospatial Data Infrastructure Center’s website (link here) for more information. 

Transition and Supporting Mechanisms

During the transition, existing provincial authorities will continue functioning until the new units are fully operational. Agencies are tasked with urgent preparations, including updating administrative boundaries, legal documents, and seals, with public disclosure on the National Legal Portal.

The main supporting mechanisms for Resolution 202 include:

1. Resolution No. 190/2025/QH15 (effective 19 February 2025), which addresses state apparatus reorganisation; and

2. Resolution No. 76/2025/UBTVQH15 (effective 15 April 2025), covering commune-level rearrangements.

Leadership Appointments

The Chairpersons for the People’s Committees of the 23 newly-merged provinces and cities have been appointed, and respective decisions detailing these appointments were signed by Prime Minister Pham Minh Chinh on 24 June 2025. The appointments take effect on 1 July 2025.

Two-tier Local Government Model (Provincial and Commune Levels) 

Following Resolution 202, on 16 June 2025, Vietnam’s National Assembly unanimously passed Resolution No. 203/2025/QH15 (“Resolution 203“), which amends the 2013 Constitution. Effective 1 July 2025, this landmark policy officially abolishes the district level of local administration. Consequently, from this date, Vietnam’s governmental structure will consist of a two-tier system: central government, provincial government (level 1), and commune government (level 2).

Key Constitutional Amendments

Resolution 203 amends five articles of the Constitution (i.e. Articles 9, 10, 84, 110, and 111) to streamline the political system, focusing on:

1. redefining administrative units into two levels: province/city (directly under central authority) and commune, thereby eliminating the district level (Article 110);

2. reaffirming the Vietnam Fatherland Front’s role as the central organisation for national unity, with enhanced legal authority to propose laws and ordinances; and

3. clarifying the Vietnam Trade Union’s role as a political-social organisation under the Fatherland Front, representing workers both nationally and internationally.

On the same date, the National Assembly also passed the amendments to the Law on Local Government Organization to synchronise with this new two-tier system.

This reform is considered a significant step toward establishing a more efficient and modern governance structure, which is crucial in supporting Vietnam’s overarching goal of becoming a prosperous nation. 

Vietnam’s 2025–2027 Legislative Fix: National Assembly Grants its Authority to Government 

The reorganisation of Vietnam’s administrative units is expected to cause significant legal overlaps and bottlenecks, affecting over 7,000 legal documents due to ministry mergers and an additional 19,000 documents arising from local government changes. To ensure administrative continuity, on 24 June 2025, the National Assembly passed Resolution No. 206/2025/QH15 (“Resolution 206“). Taking effect immediately upon its passing and valid until 28 February 2027, Resolution 206 empowers the Government to issue legal documents to adjust specific provisions in existing laws and resolutions. This seeks to address the legal difficulties and overlaps during the relevant period.

Key Features of Resolution 206

1. Authorisation for Legal Adjustments
   • The Government can issue normative resolutions to modify provisions it originally proposed, provided these changes are reported to the National Assembly at its earliest session.
   • For adjustments to laws proposed by other agencies, or those significantly impacting the economy, society, defense, security, or foreign affairs, the Government must consult the proposing agency and obtain approval from the CPV’s competent authority.
   • All such resolutions must clearly state their expiration date (i.e. no later than 1 March 2027) and accurately list down the documents and provisions being amended.

2. Process and Transparency
   • Draft Government resolutions must undergo review by an independent appraisal council under the Ministry of Justice before being issued.
   • To ensure transparency, all adjustments must be publicly disclosed on the National Legal Portal.
   • The entire process adheres to the Law on Promulgation of Legal Documents (No. 64/2025/QH15) and other relevant laws, ensuring compliance with CPV leadership and legal unity.

3. Implementation and Oversight
   • The Government, ministries, and local authorities are responsible for implementing Resolution 206.
   • The National Assembly and its Standing Committee will oversee compliance with Resolution 206.
   • The resolutions that the Government may issue to address legal difficulties and overlaps are temporary in nature and are meant to ensure flexibility while maintaining legislative oversight during the relevant period.

Conclusion

Vietnam’s ongoing governance reforms, guided by the CPV’s vision for a “Radiant Vietnam,” mark a decisive push towards a more streamlined and efficient state apparatus. The abolition of the district level and consolidation of administrative units, along with accompanying legal adjustments, underscores a commitment to modernise governance. While Vietnam navigates significant legal and logistical challenges, these reforms aim to enhance economic growth, foster global integration, and ultimately build a more prosperous and responsive nation, continuing the transformative spirit of Đổi Mới.

If you have any queries on the above, please feel free to contact any of our team members.

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^[1] https://baochinhphu.vn/rang-ro-viet-nam-102250202101034492.htm