Vietnam’s Bold Move Brings Big Opportunities
07/07/2025 | 18 views
Starting July 1, the number of provinces and centrally-governed cities in Vietnam will be reduced from 63 to 34, comprising 6 centrally-run cities and 28 provinces. Following resolutions passed by the National Assembly, this restructuring is expected to save over VND 190 trillion (approximately USD 7.3 billion) in state spending between 2026 and 2033.
The new administrative model also includes transitioning to a two- or three-tier district-level system, along with a streamlined commune/ward structure. Some newly merged provinces will see their geographic size double or even triple, requiring comprehensive administrative adjustments.
In the discussion with VTV4, Michael Piro, Co-CEO of Indochina Capital calls this a “huge advantage” driven by visionary leadership. The streamlined structure promises greater transparency, cost savings, and improved execution of national programs.
Therefore the questions is how will licensing and investment procedures evolve for both of local and foreign businesses? “Big opportunities lie ahead—but only with smooth transitions and clear guidance”, he said.
Watch full interview here: https://www.youtube.com/watch?v=wqHDxD6X4Rk
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