HCMC – Vietnam has spent nearly VND30 trillion paying compensation for public employees laid off during an administrative system restructuring, according to the Ministry of Finance.
As of June 30, VND29.8 trillion had been disbursed, including VND7.6 trillion from the central budget and VND22.2 trillion from local budgets, showed data from the State Budget Department at the Ministry of Finance.
The restructuring is part of a broader plan to streamline the Government apparatus. A representative from the ministry’s State Budget Department said local governments could use wage reform funds to make the payments. Provinces short on funds could request support from the central Government.
Under Resolution No. 196 by the National Assembly, the Government allocated an additional VND44 trillion from the central budget for the payouts. If needed, the Government may use reserves from wage reform funds.
The Politburo also approved using 40% of the 2024 central budget revenue surplus for wage reform.
The Finance Ministry said total available funds include VND44 trillion from the budget and VND76.6 trillion from increased revenues. Over VND61.4 trillion has been proposed for disbursement based on requests from ministries and localities.
Vietnam has reduced the number of provinces and centrally governed cities to 34 and the number of commune-level units to 3,321. This means the nation has eliminated 29 provincial-level and 6,714 commune-level administrative units.
Following the changes, the provincial-level public workforce would shrink by 18,449 positions to about 91,784. At the commune level, over 110,000 jobs would be cut, along with more than 120,000 part-time roles.
