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

Vietnam's Deputy Prime Minister Pham Thi Thanh Tra has revealed that there are currently 705 local administrative units that do not meet the required standards, and the government aims to finalize their restructuring by 2026. This announcement was made during a conference on the one-year operation of the new three-tier government model.
During the conference held on July 1, 2026, Deputy Prime Minister Tra highlighted significant achievements in governance over the past year. The restructuring has opened up new development opportunities and fostered a strategic vision for the country's growth in the new era. She noted that several localities, including Hanoi, Ho Chi Minh City, Hai Phong, Dong Nai, Bac Ninh, Quang Ninh, Ninh Binh, and Tay Ninh, have made impressive progress in administrative restructuring.
To ensure the efficiency and effectiveness of the state administrative system, the government is focusing on three key tasks. Firstly, it aims to continue developing and perfecting the legal framework while enhancing the capacity for implementation. Deputy Prime Minister Tra emphasized that the past year has seen significant breakthroughs in administrative procedure reforms, with the government completing approximately 1,300 legal documents and simplifying nearly 40% of administrative procedures and business conditions.
Secondly, the government is committed to innovating national governance methods by promoting decentralization and digital transformation. After one year of implementing decentralization, local governments at the provincial level have taken on 1,382 tasks delegated from the central government, while local units are managing 938 tasks. This substantial workload necessitates a refined mechanism for decentralization linked to resource allocation and power control.
Lastly, the government aims to enhance the quality and effectiveness of local governance. Deputy Prime Minister Tra urged each locality to assess and review the development space after administrative restructuring to ensure alignment with development needs, including the establishment of special administrative units that can drive regional growth.
As part of this initiative, the government will provide specific guidance to complete the restructuring by 2026, ensuring that the process is efficient and effective while respecting cultural and historical contexts.