Vietnam's Administrative Overhaul: What Foreigners Need to Know

Vietnam is undergoing a significant administrative restructuring, reducing its 63 provinces and centrally governed cities to 34. This move aims to streamline governance and improve efficiency across the nation.

Key Changes

Reduction of Administrative Units
The country will consolidate its current 63 provincial-level units into 28 provinces and 6 centrally governed cities, according to the Vietnamese government's approved master plan.

Elimination of District-Level Governance
The traditional four-tier administrative structure (central–provincial–district–commune) will be trimmed to a three-tier system: central government, provincial/municipal level, and commune/ward level.

Merging of Local Units
Approximately 5,000 commune- and ward-level units will be merged, leading to a 60–70% reduction in grassroots-level administrative entities. The change is expected to cut bureaucracy and enhance public service delivery.

Vietnam’s Planned Provincial Mergers (2025)

Status	Provinces Involved	New Name	Administrative Center
Remain Unchanged	Hanoi, Hue, Lai Chau, Dien Bien, Son La, Lang Son, Quang Ninh, Thanh Hoa, Nghe An, Ha Tinh, Cao Bang	–	–
Merged	Tuyen Quang + Ha Giang	Tuyen Quang	Current Tuyen Quang
	Lao Cai + Yen Bai	Lao Cai	Current Yen Bai
	Bac Kan + Thai Nguyen	Thai Nguyen	Current Thai Nguyen
	Vinh Phuc + Phu Tho + Hoa Binh	Phu Tho	Current Phu Tho
	Bac Ninh + Bac Giang	Bac Ninh	Current Bac Giang
	Hung Yen + Thai Binh	Hung Yen	Current Hung Yen
	Hai Duong + Hai Phong	Hai Phong	Current Hai Phong
	Ha Nam + Ninh Binh + Nam Dinh	Ninh Binh	Current Ninh Binh
	Quang Binh + Quang Tri	Quang Tri	Current Quang Binh
	Quang Nam + Da Nang	Da Nang	Current Da Nang
	Kon Tum + Quang Ngai	Quang Ngai	Current Quang Ngai
	Gia Lai + Binh Dinh	Gia Lai	Current Binh Dinh
	Ninh Thuan + Khanh Hoa	Khanh Hoa	Current Khanh Hoa
	Lam Dong + Dak Nong + Binh Thuan	Lam Dong	Current Lam Dong
	Dak Lak + Phu Yen	Dak Lak	Current Dak Lak
	Ba Ria-Vung Tau + Binh Duong + HCMC	Ho Chi Minh City	Current Ho Chi Minh City
	Dong Nai + Binh Phuoc	Dong Nai	Current Dong Nai
	Tay Ninh + Long An	Tay Ninh	Long An
	Can Tho + Soc Trang + Hau Giang	Can Tho	Current Can Tho
	Ben Tre + Vinh Long + Tra Vinh	Vinh Long	Current Vinh Long
	Tien Giang + Dong Thap	Dong Thap	Current Tien Giang
	Bac Lieu + Ca Mau	Ca Mau	Current Ca Mau
	An Giang + Kien Giang	An Giang	Current Kien Giang

Note:
Detailed plans for these mergers will be proposed to the National Assembly in May and June 2025 for approval.

Implications for Foreign Professionals

Business Operations
Businesses may need to adjust to new administrative boundaries, which could impact licensing, taxation, and regulatory processes. Foreign-invested enterprises operating across multiple provinces should keep close contact with legal consultants for compliance updates.

Relocation and Housing
The merger could influence real estate zoning and local housing policies. Expats should pay attention to updated residence permits or housing registration procedures.

Legal and Bureaucratic Processes
Expect updates in documentation and processing timelines as local authorities restructure. Procedures such as work permits, residence cards, and company registrations might be temporarily impacted in certain areas.

Timeline

The full implementation of this plan is targeted by September 1, 2025. Changes at the commune level are expected to be completed earlier, by June 30, 2025.

Conclusion

This administrative revamp is a bold step toward modernizing Vietnam’s governance system. For foreigners working and living in Vietnam, staying updated and prepared is key. Keep an eye on updates from the Department of Justice, immigration offices, and local authorities in your area to ensure a smooth transition.

If you’re managing a business or working in HR, consider seeking legal consultation by mid-2025 to align with the new structure in time.