Vietnam to cut at least one-fifth of public workforce in major overhaul

Under her recently-issued document, Minister of Home Affairs Pham Thi Thanh Tra, a member of the Government’s steering committee on reviewing the implementation of the 12th Party Central Committee's Resolution No.18-NQ/TW, which seeks to streamline the political system for greater efficiency, stated that the Government issued Decree No.178/2024/ND-CP on December 31, outlining policies and regimes for officials, civil servants, public employees, and military personnel involved in the restructuring of the state apparatus.

To ensure the successful implementation of these reforms, the Government's steering committee called for comprehensive political education and awareness campaigns. These efforts will help public servants, especially those directly affected, understand the broader benefits of the restructuring. It also stresses the need to prioritise collective interests over personal considerations and to recognise and reward individuals and organisations that make significant contributions to the reorganisation process.

The decree also urged the urgent development and issuance of specific criteria tailored to the characteristics and circumstances of each ministry, agency, sector, and locality. Additionally, responsibility for workforce assessments and layoff decisions will lie with Party organisations, administrative bodies, and the heads of organizations that directly manage civil servants.

Effective January 1, Decree No.178 introduces eight key policy areas, including early retirement incentives, leadership transition policies, grassroots work adjustments, talent retention programs, training initiatives for remaining staff, and provisions for military and security personnel.