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Home Affairs Confronts Tough Issues in New Decree 178

Ministry of Home Affairs addresses tough questions in Decree 178

Nguyen Quang Dung, who leads the Public Servants and Employees Department at the Ministry of Home Affairs, tackled pivotal inquiries about Decree 178/2024 (as revised by Decree 67/2025) regarding policies and benefits for public officials, civil servants, workers, and armed forces in light of the political system’s structural reorganization.

Dung explained that staff at the commune level are currently tasked with enforcement, and once district-level operations phase out, 129 responsibilities will shift to the communes. Some public officials may face challenges in fulfilling the new job standards.

Consequently, public officials from provincial and district levels will be reassigned to communes as essential leaders. Skilled and seasoned commune public servants will be allocated to specialist roles. Those unable to adapt to the new criteria will initially remain but will eventually be trimmed down.

“Individuals seeking early retirement will find favorable conditions under the provisions of Decree 178. I anticipate many will opt for retirement, as the decree’s terms are advantageous,” Dung remarked.

Addressing worries that the state budget would incur substantial expenses for supporting early retirements, Dung stated that the Ministry of Finance has assessed these amounts and managed the budget accordingly.

“When we compare the expenses of maintaining the current staff with the costs of streamlining civil servant roles along with compensations and allowances, it becomes evident that the latter is more beneficial,” he clarified.

“The state will save from not having to cover trade union fees, health insurance, administrative costs associated with public servants, and other public duty expenses. Projections indicate that five years down the line, the budget will reap more benefits than if we continued with existing salaries,” he added.

“Moreover, efficiency in work will enhance, leading to a leaner, more effective, and productive workforce. In the long run, the budget will experience significant savings,” Dung mentioned.

Since the release of Decree 178, many have voiced their discontent, feeling neglected despite having sacrificed in the war, while currently retired public servants receive substantial benefits and pensions.

“I clarified that different eras necessitate distinct approaches. However, resolving it through Decree 178 will still yield advantages for the State,” Dung noted.

Amidst anxieties regarding the potential financial strain on the state budget due to early retirements prompted by Decree 178 and Decree 67, there’s concern that even competent individuals might request early retirement for the appealing allowances offered.

Dung pointed out that both Decree 178 and Decree 67 include stringent guidelines. Not every retirement request will receive approval. Agencies responsible for managing public servants must evaluate and identify those who do not meet the new standards prior to allowing retirement.

Before the implementation of Decree 178, Dung added, the Politburo mandated the establishment of policies to safeguard the interests of those directly impacted by the restructuring while ensuring the retention of competent individuals and the removal of those unable to fulfill job requirements.

Concerning worries that those who remain could face increased workloads without corresponding salary adjustments, while new salary structures are still under consideration, Dung reassured: “For individuals chosen to remain in this restructuring process, it’s a privilege.”

“I’ve observed that many young individuals are eager to work and contribute to organizational reform, focusing beyond mere salaries. Some could earn millions in the private sector. If their only goal was high pay, they would have departed long ago. Instead, they choose to continue serving in the public sector,” Dung stated.

Currently, Dung conveyed, Vietnam has around 212,000 commune-level public officials and civil servants.

According to Government Decree 33, commune-level civil servants are required to hold a university degree or higher, with exceptions in certain challenging regions. In practice, 92.42 percent of these servants comply with this criterion.

Following the reorganization, it is anticipated that provinces will shed over 18,400 roles, communes will eliminate over 110,000 positions, and nationwide, more than 120,500 non-professional workers at the commune level will stop their activities. From 2026 to 2030, this is projected to save the state budget over VND190,000 billion, averaging roughly VND38,000 billion yearly, excluding additional expenses, as indicated by the Central Organization Commission.

Some readers of VietNamNet expressed the hope that the MHA would adopt more flexible regulations regarding the retention and retirement of public officials and workers according to personal preferences. Many wishing to retire may face denial, while others desiring to continue may be compelled to leave.

There is a call for benefits to be linked to competency; however, not retiring is regarded as a benefit, while proficiency comes without related advantages, they pointed out. Those less skilled can retire with a lump sum and “live comfortably,” while capable individuals face hurdles to retirement.


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