The central budget will provide a one-time financial support package to centrally governed provinces and cities undergoing administrative restructuring, offering an estimated 4 million USD (100 billion VND) for each reduced provincial-level unit and approximately 20,000 USD (500 million VND) for each reduced commune-level unit.

The National Assembly Standing Committee has just issued a resolution on administrative unit restructuring in 2025. This resolution outlines specific regimes and policies for officials, civil servants, and public employees affected by the organizational changes, along with funding arrangements for the process.

According to the resolution, the funding for implementing administrative restructuring will primarily be covered by local budgets. However, the central government will offer a one-time support payment of 100 billion VND (about 4 million USD) for each reduced provincial unit and 500 million VND (approximately 20,000 USD) for each reduced commune-level unit.

Officials, civil servants, and public employees not subject to staff downsizing but impacted by the restructuring will retain their current salary and position-based allowances (if any).

In addition, those affected by the merger at the provincial or commune level will continue to receive the same salaries and allowances for six months after receiving reassignment documentation. After this period, salaries and allowances will follow the general regulations stipulated by law.

The resolution emphasizes that provincial-level People’s Committees are responsible for implementing the restructuring and personnel placement to ensure streamlined staffing, structural adjustment, and the enhancement of public service staff quality.

The total number of officials, civil servants, and public employees in the newly merged provinces must not exceed the total number previously employed across the individual provinces before the merger.

Similarly, the total staff of the newly merged communes must not exceed the total staff employed in the original communes or districts before the merger.

The resolution also notes that during the transitional period, the number of vice chairpersons of People’s Councils and People’s Committees, as well as deputy heads of agencies and units, may temporarily exceed legal limits. Within five years from the resolution’s effective date, leadership structures and staffing must be realigned in accordance with existing legal regulations.

Provincial People’s Committees and relevant agencies and organizations are required to promptly implement the appropriate policies for affected employees, ensuring accuracy in targeting and protecting workers’ rights and interests during the restructuring process.

The Vinh