Brian Jeffrey
This morning, the National Assembly passed a resolution with 436 out of 438 delegates in favor, which updates the 2025 state budget to facilitate policy implementation for civil servants and public employees affected by government reorganization.
The National Assembly has authorized the allocation of 15.71 trillion VND from unspent central budget funds for wage reform in 2024, to bolster the 2025 budget and assist ministries, central agencies, and local governments in meeting their obligations.
Moreover, an additional 28.29 trillion VND in revenue—sourced from savings on central wage reforms—will be incorporated into this year’s budget for these same initiatives.
This adjustment raises the total supplementary allocation for 2025 to 44 trillion VND (around USD 1.73 billion), designated to support policies and benefits for officials, civil servants, public employees, and workers during the ongoing downsizing and restructuring of governmental bodies.
If costs exceed the 44 trillion VND cap, the government may draw from remaining savings from the 2024 wage reforms, provided they report to the National Assembly at the next session.
The Assembly has also approved the transfer of 6.623 trillion VND from unallocated regular expenditures of 2024 to 2025 to support free tuition policies and other government restructuring efforts (excluding salary obligations).
According to the Ministry of Education and Training, a total of approximately 10 trillion VND will be necessary to fully implement free tuition from preschool through high school, with 4.5 trillion VND required in the current year alone.
Furthermore, the National Assembly agreed to allocate 3% of the overall 2025 state budget (approximately 25 trillion VND) toward science, technology, innovation, and national digital transformation, in accordance with Resolution 57 from the Politburo.
The government is responsible for the effective implementation of this resolution, ensuring adherence to spending guidelines to prevent wastage or mismanagement. A comprehensive report must be presented to the National Assembly at its next meeting.
The State Audit Office of Vietnam will oversee the auditing of the resolution’s implementation, confirming compliance with legal standards.
Post-restructuring, the estimated number of civil servants and public employees at the provincial level is anticipated to be around 91,784, reflecting a reduction of 18,449 positions; at the commune level, the workforce will decrease to slightly over 199,000, resulting in the elimination of about 110,000 jobs; and more than 120,000 part-time workers at the commune level will be completely phased out.
