Vietnam has identified institutional reform as a strategic breakthrough. In translating the Party’s major directives into action, the Government has launched reforms at an unprecedented pace. A sweeping “administrative reform revolution” is now being intensified to realize the ambition of achieving double-digit economic growth.
Substantive reform is strengthened
On April 29, the Government adopted 8 resolutions to decentralize and simplify administrative procedures and business conditions for sectors under the management of 14 ministries and ministerial-level agencies.
Accordingly, the Government has amended and supplemented 163 legal documents, including 155 decrees, the largest number over previous reforms. As a result, 184 administrative procedures were abolished, 134 were decentralized, and 349 were simplified.
The Government has abolished 890 business conditions and reduced the percentage of administrative procedures handled directly by central-level agencies to 27%, aiming to cut compliance time and costs by half for citizens and businesses. These figures reflect a new approach to comprehensively and systematically reform rather than making partial adjustments as in the past.
Three days after issuing sweeping reform resolutions, on May 2 the Government Office relayed instructions from Prime Minister Le Minh Hung, ordering ministries to urgently review and propose streamlined procedures in fire prevention and control, industrial park and cluster development, environmental impact assessment, and construction permits.
Progress reports must be submitted by May 10 and sent to the Ministry of Justice for independent evaluation.
These four areas are considered the most problematic for businesses, according to the 2024 Provincial Competitiveness Index report.
Deputy Minister of Justice Nguyen Thanh Tinh said: “This is a very comprehensive reform drive. In less than one month since the new Government took office, we have achieved the Prime Minister’s target of cutting and simplifying administrative procedures and conditional business lines.”
Direct impacts
Strong administrative reform has delivered tangible benefits to citizens, businesses, and the overall economy. Cutting procedures and conditions helps businesses cut costs and save time, enabling faster decision-making and enhancing competitiveness.
Some citizens shared their thoughts on the progress so far:
“Simplified and transparent business procedures help reduce risks of the “ask-give” mechanism, informal costs, and dependence on subjective approvals.”
“Streamlined procedures help businesses cut costs, accelerate product development, and expand distribution channels. The message is clear that the Government is genuinely accompanying businesses with swift and decisive action to enhance their development.”
For citizens, simpler procedures and less direct contact with authorities reduce the risk of harassment and improve public service quality.
For the economy, the biggest impact is unlocking resources and boosting the efficiency of capital, ideas and production capacity which are key drivers for high growth.
These measures also help restore business confidence and public trust in the administrative system.
Amid global economic uncertainties, Vietnam’s double-digit growth target remains challenging. But effective institutional reform, pursued as a strategic breakthrough in line with Party direction, can unlock growth. It is an essential path to achieving the country’s development ambitions in the new era.
