| IN BRIEF
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is set to embark on a bold reform by significantly reducing its public sector. With the goal of reducing the number of ministriesand government agencies, this move is intended to reduce the wage bill and streamline public spending. The move has drawn comparisons with other countries, including the United States, where political figures have also made cuts to the federal budget. In a context where the Vietnamese economy remains robust, posting enviable growth, this initiative raises questions about the motivations and implications of such a strategy. Vietnam, traditionally known for its communist system, is preparing to implement a significant reform
of its public sector. In response to economic imperatives and strategic choices similar to those in countries such as the United States, the government is considering reducing the number of government agencies and ministries. This decision could have broad implications for public administration and social dynamics in Vietnam. A bold reform in the civil service In a recent vote, Vietnam’s National Assembly approved the elimination of nearly a third of its government agencies, reducing their number from 30 to 22. The move aims to
optimize the functioning of the State
and rationalize public spending. Vietnamese Prime Minister To Lam echoes traditional criticisms of the civil service, calling it, in blunt terms, a “hideout for mediocre civil servants” and comparing it to “tumors” on the economic system. The motivations behind this reduction If the desire to reduce the number of civil servants may seem radical, it is also based on
financial reasons
obvious. The main objective is to reduce the wage bill, save resources in the state budget and stimulate economic growth. However, this intention raises questions about the current state of the Vietnamese economy which, paradoxically, is experiencing a impressive growth with growth exceeding 7% last year. A worrying dependence on exports Vietnam faces a tricky journey. Indeed, one of the major weak points of its economy is its
dependence on exports
, which represent more than 90% of its gross domestic product (GDP). In addition, a third of these exports are destined for the United States, highlighting a vulnerability with regard to the evolution of American trade policies, especially in a context where Washington is strengthening its tariff barriers. Civil servants on the front lineConcerning the first victims of this reform, the media have already suffered cuts, with five public television channels forced to close. The police will not be spared; the government plans to reduce the number of police officers while increasing the
video surveillance
to compensate for this decrease. In Hanoi, the installation of 40,000 new cameras is currently planned, adding to the 20,000 already in place. Public engagement To complement this monitoring, the government is also encouraging Vietnamese people to play an active role in reporting traffic violations, promising them up to 10% of the amount of fines as a reward. This raises the question of whether the state is betting on the
greed
of its population to compensate for the reduction in public spending. A history of cuts in the public sector It should be noted that this situation is not unprecedented. By the end of the 1980s, Vietnam had already reduced the number of its civil servants by more than a million, in response to the failure of the
soviet planning
. Since then, the government has consistently promoted a market economy while maintaining a socialist orientation, creating a hybrid model similar to that of China. This new push for reform marks a significant step in Vietnam’s transformation, as the country tries to balance its communist identity with the pressing needs of amodern economy
and competitive. FAQ on Public Sector Downsizing in Vietnam Q: How big is the reduction in the public sector in Vietnam?
The Vietnamese government plans to
remove almost a third
of its government agencies and ministries, going from 30 to 22. Q: What are the motivations behind this decision? The reasons may be varied, but the
Vietnamese Prime Minister
mainly evokes the need to reduce costs , of rationalize expensesand of boost the economy , although it is currently doing well. Q: Which sectors will be impacted by this reduction?Difficult to say with precision, but it is obvious that
professions such as those in the media
and law enforcement will be affected, for example with the closure of several public television channels. Q: How is the government compensating for downsizing? To reduce the number of police officers, the government plans to strengthen the
video surveillance
and plans to install 40,000 additional cameras in Hanoi. Q: Has Vietnam made similar reductions in the past? Yes, in the 80s the government already
dismissed more than a million civil servants
due to the failures of Soviet planning. Q: What is the current economic situation in Vietnam? The Vietnamese economy posted a
growth of 7%
last year, which is considered a very encouraging performance despite significant dependence on exports. Q: What share of Vietnamese exports go to the United States? More than one
third of exports
Vietnamese goods are headed to the United States, exposing the country to economic risks due to customs duty increases imposed by Washington.