Vietnam endorses sweeping reforms to spur economic growth, job market

By Nguyen Dieu Tu Uyen and Nguyen Xuan Quynh

 

Vietnam’s parliament formally approved a plan for the biggest government overhaul in decades, a move that will slash thousands of jobs and radically streamline a bloated bureaucracy in an effort to pursue ambitious growth targets. 

The vote was passed Tuesday at an extraordinary meeting of the National Assembly in Hanoi.

 

An estimated 100,000 civil servants will be affected as the government targets a roughly 20% reduction in the size of ministries, government agencies and workforce in the biggest restructuring since Vietnam adopted pro-market reforms in the 1980s. 

 

Under the plan, five ministries are being abolished, while others will be merged. Outlets for information are being dramatically curbed with many state-run TV channels being shut down, and multiple newspapers and magazines scrapped.

 

 

Two new deputy prime ministers have been approved by the parliament as part of the changes. The planning and investment minister, Nguyen Chi Dung, whose ministry is being merged with finance, as well as head of the Party Central Committee’s Commission for Mass Mobilization, Mai Van Chinh, whose old unit has been combined with the propaganda department.

 

Communist Party chief To Lam’s push to cut red-tape comes ahead of next year’s leadership reshuffle at the twice-in-a-decade National Party Congress. Lam is putting his stamp on the system amid jockeying to win a full term as party general secretary. 

 

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“Sometimes we have to take bitter medicine, endure pain and cut out tumors in order to have a healthy and strong body,” Lam said in a speech in December. 

 

The reforms are seen as key to unlocking the 8% economic growth that Prime Minister Pham Minh Chinh is pushing for this year, with a view to strive for double-digit growth in the coming years.

 

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A range of payouts is being offered to thousands of government workers being laid off. Many are worried about finding new jobs amid the influx of workers from the public to the private sector.