The Ministry of Interior in Vietnam is actively addressing the issue of misallocated funds related to Decree 178, which was enacted to manage the restructuring of government personnel. During a press conference on September 11, Deputy Minister Vu Chien Thang stated that any instances of improper spending will be dealt with rigorously to prevent losses to the state budget.

Thang highlighted that the restructuring process is a significant reform effort, unprecedented in scale, which has resulted in some officials needing to exit their positions. Decree 178, issued at the end of 2024, reflects the government's responsibility towards those affected by the restructuring. However, the rapid implementation across various regions has led to some misunderstandings and errors in execution.

“I assure you that the purpose of Decree 178 is not to reduce personnel numbers but to streamline operations and enhance the quality of the workforce,” Thang asserted. He acknowledged that some discrepancies had occurred, as pointed out by the State Audit Office, which were primarily due to varying interpretations and execution practices in different areas.

Following the State Audit Office's report to the Prime Minister, the Ministry of Interior has instructed all ministries and localities to review cases of personnel who have left their positions under Decree 178, which has been amended by Decree 67/2025. Any clear issues must be proactively addressed, and cases exceeding authority will be compiled for the Prime Minister's consideration.

Thang emphasized the need for strict measures to be implemented after the review process, ensuring that the state budget remains intact while maintaining a capable workforce. Vu Hai Nam, Head of the Organization and Personnel Department, noted that the audit revealed that violations were minimal, accounting for less than 1% of cases reviewed.

He explained that the errors identified were primarily in the organization and implementation stages. The urgency of implementing Decree 178 led to inconsistencies in understanding and execution among various agencies. When identifying cases of improper spending, agencies are required to take initiative in rectifying and recovering funds for the state budget.

Regarding individuals who were incorrectly laid off, their potential return to work will depend on the staffing needs of each agency or locality. The State Audit Office's report, submitted to the Prime Minister in late July, was based on a sample audit from ten localities and four central agencies, rather than a comprehensive review across the country.

The ten localities included Hanoi, Ho Chi Minh City, Dong Nai, Lam Dong, Dak Lak, Gia Lai, Tay Ninh, Can Tho, Ca Mau, and Son La. The four central agencies involved were the Government Office and the Ministries of Education and Training, Culture, Sports and Tourism, and Construction. The audit found instances where the identification of beneficiaries and calculation of entitlements were incorrect, with specific issues noted in Son La regarding improper allocations and incomplete fund recovery.

Decree 178, issued by the government at the end of 2024 and later amended by Decree 67/2025, outlines the policies and entitlements for officials, civil servants, and workers affected by organizational restructuring. Depending on their roles, length of service, and years remaining until retirement, those who leave their positions may be eligible for early retirement or severance benefits. According to the State Treasury, by the end of 2025, the budget had disbursed 163.482 trillion VND for 117,073 individuals who left their positions under Decree 178.