Post-Merger Planning Challenges: Adjustments in the Wake of Administrative Restructuring

Before the National Assembly passes the resolution on the 2025 provincial administrative reorganization, the Government submitted a report clarifying and responding to issues related to planning and institutional arrangements following the proposed mergers. One of the key points emphasized is that existing legal regulations on planning—including formulation, appraisal, approval, publication, and adjustment—will remain in effect until new replacement legislation is formally issued.

In reality, after the merger of administrative units, many elements of existing national, regional, and provincial planning will no longer be appropriate. Although several localities have completed their provincial plans, changes in administrative boundaries will render portions of those plans outdated or misaligned. To address this, the Government has proposed a draft law amending several articles of the Planning Law, expected to be passed during the National Assembly’s 9th session.

The draft law authorizes the Government to review and revise legal documents related to planning to ensure consistency and feasibility within the restructured governance model. While waiting for the revised laws to take effect, current regulations will continue to apply to prevent any legal vacuum. Meanwhile, the Government is empowered to issue interim legal documents and report them to the National Assembly at the next session.

Another critical issue is the arrangement and reallocation of civil servants and public employees across newly merged administrative units. The Government has pledged to promptly guide localities in developing detailed implementation plans, clearly defining roles and responsibilities, and assigning personnel capable of fulfilling new mandates under the two-tier local governance model. Furthermore, appropriate policies will be applied to support surplus staff affected by the restructuring.

Additional suggestions include calling for effective solutions to manage public assets and repurpose facilities for healthcare, education, community services, affordable housing, and startup centers. There are also recommendations to provide housing and transport support for civil servants in the newly assigned administrative areas to ensure a stable working environment.

According to Government reports and guidance outlined in Resolution No. 76/2025/UBTVQH15 and official directives from the National Steering Committee, local governments are tasked with allocating budgets to upgrade and adapt retained administrative buildings. Asset management must strictly follow Ministry of Finance guidelines and adhere to the “six clarities” principle: clear responsibilities, tasks, timelines, authority, outputs, and accountability.

The Prime Minister has also issued directives allowing localities to temporarily maintain multiple government offices during the transition if infrastructure and IT systems are not yet fully integrated. The Ministry of Finance has issued detailed instructions on receiving, using, and handling public assets and is now building a database system to monitor disposal and reallocation progress—aiming for transparency, accountability, and prevention of waste or corruption.

Regarding proposals to identify the new political–administrative centers for merged provinces, the Government clarified that decisions on these matters fall under the authority of the National Assembly or competent bodies, as specified in the Constitution and the 2025 Law on Local Government Organization. Therefore, such details are not included in the current draft resolution.

Some lawmakers also proposed that administrative restructuring align with pre-approved regional socio-economic plans to minimize disruption. In response, the Government explained that the restructuring is part of a broader strategic agenda to redesign the national development framework—prioritizing regional synergy between mountainous, lowland, and coastal areas rather than strictly following the old six-region economic map.

The 2025 restructuring proposal has been carefully developed, reviewed by the Politburo and Central Committee, and enjoys overwhelming public support (96.19%) along with unanimous approval from elected local representatives. As such, the Government has recommended the National Assembly retain the originally submitted plan.

Source: Vietnam Investment Review