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Viet Nam
Industrial Park Situation
Text by Saito Hiroshi
The 39th: Reorganization of central government ministries and agencies in Vietnam
At the National Conference of the Communist Party of Vietnam held on December 1, 2024, it was revealed that a large-scale reorganization plan for political and administrative organizations is being considered for the spring of 2025 in order to improve the efficiency of politics and administration, and Japanese companies have expressed both expectations and concerns. The direction of proceeding with the review of organizations such as the Communist Party and national institutions was set out in the Central Committee Resolution No. 18 (18/NQ-TW) in 2017, but from around autumn 2024, discussions on formulating a reorganization plan accelerated, centered on the Central Steering Committee on the same resolution. This is thought to reflect the intentions of General Secretary To Lam, who aims to streamline and streamline organizations. The review will cover a wide range of organizations, including party organizations, central government ministries, and organizations under the government and parliament. The government and its related organizations plan to decide on a new organizational structure at the extraordinary Diet session in February 2025, and to complete the reorganization in March. According to local media reports, the reorganization of central government ministries and agencies will reduce the current 18 ministries and 8 agencies to 13 ministries and 4 agencies, reducing 5 ministries and 4 agencies. In addition, 12 of the 13 bureaus under each ministry will be abolished, resulting in a reduction of 500 departments across all ministries and agencies (VN Express, December 17, 2024).
Specifically, the merger of the Ministry of Finance and the Ministry of Planning and Investment, the Ministry of Information and Communications and the Ministry of Science and Technology, the Ministry of Transport and the Ministry of Construction, the Ministry of Natural Resources and Environment and the Ministry of Agriculture and Rural Development is being considered, and the Ministry of Labor, War Invalids and Social Affairs will be dissolved and its operations transferred to the Ministry of Interior, the Ministry of Education and Training, and the Ministry of Health.
Clarifying the duties and roles of each organization and agency through the reorganization of ministries and agencies will lead to medium- to long-term cost reductions and operational efficiency, but there are concerns that new risks will arise, such as temporary administrative dysfunction and delays in various procedures and approvals.
Ho Chi Minh City People’s Committee Headquarters
Particular attention should be paid to the latest administrative procedures.
This reorganization of ministries and agencies is aimed at streamlining the organization and making administration more efficient, but the transition period from the Diet’s decision to the new system is extremely short, and it is likely that administrative procedures for companies will be temporarily affected.
The Japan Chamber of Commerce and Industry in Vietnam is concerned about the impact on business practices and sent a letter of opinion to the Vietnamese government in December 2024. Although the government emphasizes that business activities will not be affected, some companies have pointed out that confusion has already occurred in the authorities’ licensing procedures. For the time being, it seems necessary to be aware that various procedures such as investment applications and obtaining work permits for expatriates will take longer than usual, and that the department in charge will be changed.
[Source: JETRO Business Brief]
齊藤公(Saito Hiroshi)
Business Advisor
G.A. Consultants Vietnam Co., Ltd
After graduating from university, he joined a PHP research institute and served as the head of the New York office. He then worked on the “Nagoya Port Redevelopment Project” at a subsidiary of the Chubu Nippon Broadcasting (CBC) company. He later shifted his base to Asia, where he was involved in the launch of “FM96.3” in Singapore, and the creation of “Hello Vietnam” and “Invest Asia” magazines in Vietnam. He then joined BW Industrial Development JSC, Vietnam’s largest rental factory development company, where he was responsible for attracting Japanese manufacturing companies. Currently, he is active as a consultant for the entry of Japanese companies at “G.A. Consultants”, one of the longest-standing Japanese HR consulting firms in Vietnam.
