July 1, 2025, marked a historic milestone for Vietnam as the entire state apparatus officially began operating under a new structure, likened to the third time the country has “restructured its domain” since the nation’s founding 80 years ago.

This sweeping institutional reform goes beyond administrative realignment, representing a revolution in governance thinking, aimed at building a more efficient, transparent, and dynamic Vietnam on the global stage.

The first restructuring: Independence and unification after the August Revolution of 1945

The first major restructuring occurred following the triumph of the August Revolution in 1945. At that time, Vietnam was fragmented by French colonial rule into three regions with different political systems: the South as a colony, the Central region under a puppet monarchy, and the North directly controlled by French commissioners. Vietnam rose from these divisions.

The 1946 Constitution abolished the tripartite division, uniting the S-shaped landmass under a single government led and owned by the people. This laid the groundwork for the prolonged resistance against French colonialists and American imperialists, culminating in the historic victory of 1975 that ended centuries of separation and completed national reunification.

The second restructuring: Reform, integration, and remaining challenges

After 1975, particularly following the defeat of the northern border invasion, Vietnam entered its second major restructuring phase. The 1980 Constitution, and later the 1992 and 2013 amendments, accompanied the nation's sweeping Doi Moi (Renovation) reforms that began in 1986. These efforts transformed Vietnam from a war-torn nation into one of the region’s most dynamic economies. Vietnam’s GDP surged more than 100-fold in 50 years - from just over USD 4 billion in 1975 to more than USD 400 billion in 2024 - representing a rare growth rate globally.

Despite these achievements, Vietnam never rested on its laurels. Post-2016, GDP growth averaged just 5.3% annually, below the 6.3% average over the 40 years of reform, revealing institutional bottlenecks that required urgent attention. A bloated administrative system, especially the existence of district-level governance as an intermediary layer, hindered policy implementation and accessibility at the grassroots level. Additionally, the reorganization of provincial administrative units over three decades lacked coherent standards and goals, leading to inefficiencies in management and development.

The third restructuring: A historic institutional revolution in 2025

Refusing complacency, Vietnam embarked on a bold and comprehensive reform in 2025 - its third great restructuring. This revolution reorganizes the structure of the Party, State, and Vietnam Fatherland Front based on the renewal of national territorial units.

Key breakthroughs in this restructuring include:

Abolishing district-level governance: One of the most daring reforms eliminates this intermediary level, streamlining the system and ensuring that national policies reach communes directly. This significantly enhances the government’s operational effectiveness and public service delivery.

Reducing provincial and communal administrative units: The number of provinces will be reduced from 63 to 34, and commune-level units from over 80,000 to just over 20,000. This consolidation is designed to create larger jurisdictions with adequate size, population, and economic diversity for sustainable development.

Overhauling the central government: Numerous ministries and departments have been streamlined. Notably, the long-discussed merger of the Ministry of Planning and Investment with the Ministry of Finance has finally materialized. A total of 13 general departments, 219 departments, 519 bureaus, and over 3,000 sub-bureaus have been dissolved, creating an unprecedentedly lean central government.

Streamlining the Party and mass organizations: Alongside administrative reforms, the Party's organizational structure has been refined. District-level Party bodies have been removed. At the central level, Party agencies no longer overlap with government ministries. All Party caucuses within ministries have been dissolved. Political-social organizations are now directly under the Vietnam Fatherland Front instead of operating in parallel, ensuring synchronization and system-wide efficiency.

This reform reflects a spirit of determination - not the traditional incrementalism of “crossing the river by feeling the stones” or “Hanoi can’t be rushed,” but a new motto: “The central government leads by example, localities respond, and we march in formation.” The Political Bureau’s resolve has become the will of the entire Party and people, generating a powerful national momentum.

A convergence of timing, opportunity, and unity: The dawn of a new era

Vietnam’s third major restructuring aligns not only with internal readiness but also with growing international support. The country is increasingly seen as a strategic destination by global leaders, international delegations, business elites, and top academics. A flurry of high-level visits, cooperative agreements, and cultural, scientific, and political exchanges have strengthened bilateral ties. Vietnam’s diplomatic stature is expanding among permanent UN members, the EU, ASEAN, BRICS, and the UAE. Even seemingly small stories - like Cuba’s successful rice cultivation using Vietnamese techniques or Burkina Faso’s flag resembling that of the former Southern Liberation Front - highlight the country’s global reach and influence.

With the alignment of favorable timing, strategic opportunity, and national unity, this third national restructuring is expected to drive Vietnam toward its development goals, especially for the centennial celebrations of the Communist Party of Vietnam in 2030 and the Socialist Republic of Vietnam in 2045.

A bold new era has begun - built on a streamlined, efficient institutional foundation and a determined national spirit.

Dinh Duc Sinh