(Photo: VGP)

This historic event lays a solid legal foundation for the organization and operation of local governments under the new two-tier model, which will be implemented for the first time in Vietnam to serve the Party and State’s strategic directions for national development and defense, and international integration, said Pham Tat Thang, Deputy Head of the Party Central Committee’s Commission for Communication, Education and Mass Mobilization.

“The ultimate goal is to build a government that is closer to the people and better serves them, while setting the stage for a long-term national development vision, for at least the next 100 years,” he noted.

In response to foreign journalists’ concerns about potential disruptions to the operation of foreign businesses in Vietnam as a result of the restructuring, Deputy Minister of Finance Ho Sy Hung said the restructuring revolution aims to reduce intermediary levels to facilitate an enabling, proactive and service-oriented system, designed to better serve both citizens and businesses.

“These changes will not affect the investment and business environment but instead will shorten the time for administrative procedures, reduce compliance costs, increase decentralization, and enhance transparency and accountability,” he affirmed.

Citing data from the Statistics Office, Deputy Minister Hung said foreign direct investment (FDI) into Vietnam in the first five months of this year increased 51% against last year, reaching nearly more than 18 billion USD, clear evidence of strong investor confidence.