Vietnam could reduce government by 15-20% — following the example of the US and Argentina

Vietnamʼs National Assembly on February 18 approved a government reform plan that is expected to reduce costs and improve administrative efficiency.

Reuters reports this.

The number of ministries will be reduced from 18 to 14, and they will start working on March 1. The bill was approved by over 97% of the parliamentarians present. Earlier, the assembly adopted an amendment to the law on the organization of the government, which could lead to its reduction by 15-20%. It is also planned to liquidate four agencies and five state TV channels.

The Ministry of Planning and Investment will be merged with the Ministry of Finance, and the Ministry of Natural Resources and Environment will be merged with the Ministry of Agriculture. The Ministry of Transport and the Ministry of Construction are also planned to be merged. Vietnam also appointed two new deputy prime ministers, bringing the total number of ministers to seven.

Investors, diplomats and government officials have generally welcomed the initiative, but expect administrative delays. Last month, Vietnamese state media reported that the restructuring would affect 100 000 civil servants.

Similar measures to reduce public spending are being implemented, in particular, by Argentine President Javier Milley and the US President Donald Trump.

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