Thanh Hoa Reduces Administrative Units, Saving $18 Million Annually
Thanh Hoa province has approved a plan to reduce the number of administrative units, cutting 2,418 villages

The Ministry of Home Affairs in Vietnam has initiated a study to evaluate the potential for further merging of certain local administrative units, specifically communes and wards. This assessment comes as part of a directive from the General Secretary and President, To Lam, aimed at optimizing the structure of local governance.
Minister To Lam has instructed the ministry to analyze various factors that influence the effectiveness of local governance. The evaluation will focus on criteria such as the scale of area, population density, infrastructure capabilities, and the capacity of local officials to manage these units effectively. The goal is to ensure that the administrative structure can support development needs in the current context.
The Local Government Department has been tasked with leading this study, which will also explore the establishment of urban administrative units that can coordinate development and connect essential infrastructure and public services. Additionally, the ministry is expected to propose solutions to avoid creating administrative boundaries that hinder economic and social development.
The Organization and Personnel Department will assess the appropriateness of decentralization and resource allocation, particularly concerning human resources, funding, and the mechanisms for revenue sharing and expenditure responsibilities at the commune level. This evaluation will also cover the operational efficiency and autonomy of public service units post-restructuring.
Furthermore, the Ministry of Home Affairs has emphasized the importance of aligning decentralization with available resources and the capacity to implement policies effectively. Tasks assigned to local governments must be matched with the necessary resources, data, tools, and specific responsibilities. Any responsibilities that exceed the capabilities of local communes should be supported by provincial authorities or executed through inter-commune cooperation.
In a recent statement, the ministry highlighted the need to consider the disparities between urban and rural communes, especially in mountainous and highland areas, to develop suitable solutions for improving local governance structures. This initiative follows a directive from the Central Committee, which called for a review of the necessity to adjust and merge several communes and wards based on strict criteria regarding area, population, infrastructure, and administrative capacity.
As part of this ongoing effort, the Ministry of Home Affairs will also address the challenges faced by local governments in adapting to the new administrative framework while ensuring that the differences in development conditions and capabilities are adequately accounted for.