In a landmark reform for 2025, the Government of Vietnam has commenced a significant restructuring of its ministries. This major overhaul, approved by Resolution No 176 of the National Assembly dated 18 February 2025, aims to create a leaner, more efficient, and effective state apparatus to better support the nation's development.

The restructuring involves a series of complex mergers and transfers of functions between ministries. Based on the guiding decrees, the key changes include:

Formation of a financial and economic powerhouse: The Ministry of Planning and Investment will be merged into the Ministry of Finance, consolidating key economic and financial policy functions. (guided by Decree 29 of the Government dated 24 February 2025)
Consolidation of infrastructure management: The Ministry of Transport will merge with the Ministry of Construction. Notably, certain functions of the Ministry of Transport will be transferred to the Ministry of Public Security. (guided by Decree 33 of the Government dated 25 February 2025)
Reorganization of social and home affairs: The Ministry of Home Affairs will absorb the majority of the Ministry of Labour, Invalids and Social Affairs (MOLISA). (guided by Decree 25 of the Government dated 21 February 2025). The remaining functions of MOLISA will be integrated into the Ministry of Health, and the Ministry of Education and Training. (guided by Decree 42 of the Government dated 27 February 2025, and Decree 37 of the Government dated 26 February 2025)
Creation of a new environmental and agricultural body: The Ministry of Agriculture and Rural Development and the Ministry of Natural Resources and Environment will be combined to form the new Ministry of Agriculture and Environment. (guided by Decree 35 of the Government dated 25 February 2025)
Restructuring of information and technology sectors: The responsibilities of the Ministry of Information and Communications will be divided and transferred, with parts being merged into the Ministry of Science and Technology and the Ministry of Culture, Sports, and Tourism. (guided by Decree 43 of the Government dated 28 February 2025, and Decree 55 of the Government dated 2 March 2025)
Expansion of public security management: The Ministry of Public Security will broaden its scope of authority by taking over a number of state management functions from other ministries, including the Ministry of Information and Communications, Ministry of Transport, Ministry of Labour - Invalids and Social Affairs, Ministry of Justice. (guided by Decree 2 of the Government in 2025)

While the structuring’s objectives are commendable, the execution of the restructuring seems to be done on a fast track basis and could result in avoidable complexities and delays.

For example, the transition requires significant administrative adjustments across numerous sectors. These changes primarily involve the transfer of licensing authority and procedural management from one ministry to another. In total, more than 1,300 online and offline (submitted) administrative procedures have been directly affected by these reforms. As of the end of May 2025, over 670 procedures have been updated on the website dichvucong.gov.vn or its subdomain, among which, about 500 procedures are available for online submission, and about 170 procedures must be submitted offline. Thus, approximately 630 remaining procedures have not yet been updated, so it is unclear whether they can be submitted online or offline.

This post is written by Ha Kieu Anh and edited by Nguyen Quang Vu.

Vietnam Business Law