Vietnam’s legislature has approved a landmark administrative reorganization, consolidating its 63 provincial-level administrations into just 34 in a move set to fundamentally reshape the country’s governing structure and economic development trajectory.
The new arrangement, slated to take effect on July 1, marks the sharpest cut in provincial numbers since national reunification five decades ago.
Under the new policy, 11 provinces—including the capital, Hanoi—will remain unchanged, while the remaining 52 will be merged into 23 newly formed administrative jurisdictions.
This dramatic consolidation will see Ho Chi Minh City’s boundaries expand to absorb neighboring industrial and port powerhouses, including Binh Duong and Ba Ria-Vung Tau, effectively transforming the southern metropolis into a megacity with a population set to reach 14 million. The size of the city will triple.
The overhaul, approved by the National Assembly on June 12, is part of Vietnam’s long-term strategy to streamline governance, improve administrative efficiency, and lay the groundwork for accelerated economic growth.
Communist Party General Secretary To Lam, the nation’s top political leader, emphasized during the April 12 Party Central Committee conference that the restructuring is guided by scientific principles and aimed at supporting both immediate growth and a centennial development vision.
The reform, he said, is designed to increase local governments capability, while reducing the gap between the governing body and the people, and aligning with modern governance standards of rapid and continuous growth.
Vietnam aims to achieve high-income status by 2045, with government planners targeting double-digit economic growth between 2026 and 2030 as a catalyst for this transformation.
The reorganization also reweights the country’s economic focus towards its maritime advantages. After the merger, 62% of new provinces and cities will have coastal access, up from just 44%. Minister of Home Affairs Pham Thi Thanh Tra explained the move leverages territorial configurations, shifting toward the sea to foster major growth centers, and enhance regional connectivity.
