The Ministry of Home Affairs has proposed that district-level governments in Vietnam cease all duties, powers, and operations starting from July 1, 2025. This is one of the key highlights in the draft amendment of the Law on the Organization of Local Government, which is currently open for public feedback.

According to the draft, from July 1, 2025, People's Councils, People's Committees, their affiliated bodies, chairpersons, and professional departments at the district level - including towns, cities under provinces, and cities under centrally governed municipalities - will terminate their operations and responsibilities.

In addition, the draft law stipulates that the current local government structure in wards of Ho Chi Minh City and Da Nang for the 2021–2026 term will remain in effect until the ward-level People’s Committees for the 2026–2031 term are elected.

Adjustments to the functions and authority of district-level People's Committees in Ho Chi Minh City and Da Nang before their dissolution will be determined by the National Assembly. This arrangement will remain in place until the city- and ward-level People's Committees for the 2026–2031 term are officially in place.

The Ministry of Home Affairs explained that this amendment aims to align the current law with the 2013 Constitution (as amended) and with the Communist Party’s policy of streamlining the political system by eliminating the district level, thus transitioning to a two-tier local government structure.

To ensure continuity during the transition from a three-tier to a two-tier local government model, the ministry has proposed detailed transitional provisions. These include timelines for the central government to reassign functions and responsibilities among local bodies, as well as deadlines for district-level units to hand over their operations.

Ending the urban government model

To address challenges arising from the transition to a two-tier structure, the draft law also proposes the termination of the current urban government model in cities like Hanoi, Ho Chi Minh City, Da Nang, and Hai Phong.

Accordingly, from July 1, all relevant legal provisions and resolutions relating to the urban government model will be repealed. This includes the abolition of Chapter 2 of the Capital Law and National Assembly Resolution 169 on urban governance in Hai Phong.

Furthermore, starting May 1, 2026, Resolution 131 of the National Assembly on urban governance in Ho Chi Minh City will expire. Articles 7 and 8 of Resolution 136 - concerning urban governance and pilot mechanisms for Da Nang’s development - will also be repealed.

The revised draft of the Law on the Organization of Local Government is expected to be submitted for discussion during the 9th session of the National Assembly, scheduled to begin in early May.

The Vinh