Vietnam Launches Historic Transition to 34 Provinces and Major Cities
On June 12, the National Assembly formally adopted a historic resolution to restructure Vietnam’s provincial system, reducing the number of provincial-level units from 63 to 34. Taking effect on July 1, 2025, this marks a significant shift in the structure of the administrative state that will redraw jurisdictional boundaries and consolidate authority.
Described by Minister of Home Affairs Pham Thi Thanh Tra as the “largest-ever political and administrative revolution” in Vietnam’s modern history, the reform marks a fundamental shift in the structure and philosophy of state management. It aims to eliminate bureaucratic overlap, enhance public service delivery, and advance sustainable development through more agile governance. The consolidation will streamline civil service positions, cutting about 250,000 jobs, including 130,000 officials and public employees and 120,000 commune-level part-time workers. The reform is expected to save over USD 7.3 billion for the 2026–2030 period. All provinces must finalize boundary demarcation and leadership restructuring by June 30, 2025, with the government ensuring accurate mapping of new natural and administrative borders.
At the heart of the reform is a sweeping consolidation of Vietnam’s existing 52 provinces and cities into 23 new merged units, alongside 11 provinces and cities that remain unchanged (including Hanoi and Hue). This creates a new administrative map featuring six centrally managed cities and 28 provinces.
Overview of centrally managed cities
City | After July 1, 2025 |
| Comparison with Before the Merger | |||
Population | Area (km²) |
| Population Increase | Land Area Increase | ||
1 | Ho Chi Minh | 14,002,598 | 6,772.59 | 1.47× | 3.29× | |
2 | Ha Noi | 8,685,607 | 3,358.90 | – | – | |
3 | Hai Phong | 4,664,124 | 3,194.72 | 2.20× | 2.10× | |
4 | Can Tho | 4,199,824 | 6,360.83 | 3.30× | 4.42× | |
5 | Da Nang | 3,065,628 | 11,859.59 | 2.40× | 9.23× | |
6 | Hue | 1,177,624 | 5,048.20 | – | – | |
Source: USABC’s summary and analysis
Following the restructuring, Vietnam will have 21 coastal provinces and cities, paving the way for more integrated maritime development and regional planning. Ho Chi Minh City will become Vietnam’s most populous urban center, with over 14 million residents after merging with Binh Duong and Ba Ria–Vung Tau, making it the second most populous city in ASEAN after Manila and the largest by land area among major Southeast Asian cities. The newly enlarged Da Nang, which incorporates Quang Nam province, will be the largest centrally managed city by area. Lam Dong Province, formed by merging Lam Dong, Binh Thuan, and Dak Nong, will become the largest province in the country, covering over 24,233 km².
To support the new administrative model, a constitutional amendment process is underway. The 2013 Constitution defines a three-tier system of provinces, districts, and communes. Eliminating the district level would contradict the current charter, prompting the need for formal revision. A draft amendment under review in the 9th session of the 15th National Assembly (May 5–June 28) proposes changes to eight articles, including five on local governance, to create a two-tier system and remove the district level. The government anticipates that approximately 19,000 legal documents may require revision.
As Vietnam prepares for its next phase of economic transformation, this bold reorganization signals a strong political commitment to efficiency, modernization, and long-term development. In the near term, however, businesses will need to recalibrate their relationships with newly formed or expanded local authorities. With licensing powers increasingly delegated to provincial departments, this decentralization may accelerate procedures for investors but could also lead to variability across jurisdictions, making effective local engagement essential to project success.
