VIETNAM – RENOVATION & INTEGRATION, A STRATEGIC INVESTMENT HUB OF ASIA

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Comprehensive Administrative Reform Following the Merger into 34 Provinces and Cities

Vietnam is entering a new era of administrative reform and territorial restructuring—the most significant transformation in decades. Under the latest direction, the administrative system has been streamlined from 63 provinces and centrally governed cities down to 34 provincial-level administrative units, while simultaneously eliminating the district-level government system, leaving only a two-tier administrative structure consisting of:

• Provincial/Municipal Level
• Commune/Ward Level

This is considered a strategic transformation aimed at building a more modern, flexible, transparent, and globally competitive Vietnam for investment attraction.

1 – OVERVIEW OF VIETNAM

Vietnam is located at the center of Southeast Asia and holds a strategic position connecting:

• China
• ASEAN
• Northeast Asia
• International maritime routes

Key Advantages:

• Population of over 100 million people
• Young and dynamic workforce
• Stable political environment
• Strong economic growth rate
• Extensive network of FTAs:
  • CPTPP
  • EVFTA
  • RCEP
  • UKVFTA…

Vietnam is currently a strategic manufacturing destination for many global corporations in sectors such as:

• Electronics
• High technology
• Logistics
• Supporting industries
• Clean energy
• AI & data
• Medical equipment
• Automotive and components

2 – NEW ADMINISTRATIVE REFORM – A MAJOR TURNING POINT FOR INVESTORS

From 63 Provinces and Cities Down to 34 Provinces and Cities

The merger helps create localities with:

• Larger economic scale
• More synchronized infrastructure
• Larger industrial land reserves
• More concentrated labor resources
• Stronger regional planning capabilities

This is not merely a change in administrative boundaries, but rather:

“A complete restructuring of the entire governance and regional economic development ecosystem.”

3 – ELIMINATION OF DISTRICT-LEVEL GOVERNMENT – ACCELERATING INVESTMENT PROCEDURES

Previously, many procedures had to go through:

• Commune/Ward
• District
• Province/City

This multi-layered process often caused:

• Overlapping responsibilities
• Delayed approvals
• Coordination difficulties
• Increased time costs

After the reform:

All procedures will be streamlined to only:

• Commune/Ward
• Province/City

This will help:

Shorten the processing time for:

• Investment approvals
• Construction permits
• Environmental assessments
• Business registration
• Land-related documentation
• Customs and logistics procedures

Significantly reduce:

• Administrative intermediaries
• Bureaucratic costs
• Risks of legal overlap

Increase:

• Transparency
• Administrative efficiency
• Processing speed
• Government responsiveness

4 – DIRECT BENEFITS FOR INVESTORS

4.1. Easier Site Selection and Location Assessment

Following the mergers, the new provinces will have larger scale and stronger regional connectivity, making it easier to:

• Develop synchronized industrial planning
• Analyze supply chains
• Connect seaports, airports, and expressways
• Optimize logistics and labor recruitment

Examples:

• Northern industrial regions are more closely connected with China and Hai Phong seaports
• Southern Vietnam is forming a mega industrial-logistics region linked among Ho Chi Minh City, Dong Nai, Binh Duong, and Ba Ria–Vung Tau
• Central Vietnam is developing a corridor for seaports, energy, and clean industry

4.2. Faster Investment Decision-Making

Investors will be able to:

• Work directly with provincial/city authorities
• Reduce approval layers
• Access local leadership more easily
• Receive faster support in land clearance and licensing

This is especially important for:

• Manufacturing plants
• Logistics centers
• Data centers
• Cold storage facilities
• Renewable energy projects
• High-tech industrial parks

4.3. Larger-Scale Planning – Greater Long-Term Development Potential

The newly merged provinces will have:

• Larger land reserves
• Bigger populations
• Stronger regional GDP
• More complete industrial ecosystems

As a result:

• Mega industrial parks can be developed more efficiently
• Global supply chains can be attracted
• Specialized industrial clusters can be established
• Vietnam’s competitiveness against Thailand, Indonesia, Malaysia, and India will be strengthened

5 – VIETNAM’S THREE STRATEGIC ECONOMIC REGIONS

Northern Vietnam

Strengths:

• Electronics
• High technology
• Supporting industries
• China connectivity

Key centers:

• Hanoi
• Hai Phong
• Bac Ninh
• Thai Nguyen

Central Vietnam

Strengths:

• Deep-water seaports
• Energy
• Clean industry
• Tourism & logistics

Key centers:

• Da Nang
• Hue
• Quang Ngai
• Khanh Hoa

Southern Vietnam

Strengths:

• Export manufacturing
• Logistics
• Finance
• Technology
• Consumer markets

Key centers:

• Ho Chi Minh City
• Dong Nai
• Tay Ninh

6 – MESSAGE TO INTERNATIONAL INVESTORS

Vietnam is not only opening its doors to investment, but is also:

• Restructuring its governance system
• Upgrading national infrastructure
• Accelerating digital transformation
• Enhancing global competitiveness

The streamlining into 34 provinces/cities and the elimination of district-level government sends a strong message that:

Vietnam is transitioning from an “administrative management model” to a “development- and investor-oriented governance model.

CONCLUSION

Vietnam’s new administrative reform will deliver:

• A leaner government structure
• Faster administrative procedures
• More effective planning
• More competitive investment costs
• Stronger regional connectivity

This is a strategic moment to:

• Survey the market
• Search for factory locations
• Expand supply chains
• Make long-term investments in Vietnam

Vietnam is entering a new era of development:

“Faster – More Transparent – Larger in Scale – More Investor-Friendly for the Global Market.”