Vietnam's Communist Party launches major government overhaul to cut bureaucracy

Vietnam's Communist Party is launching a major government overhaul, aiming to reduce the size of ministries and agencies by about 20%. This marks the most significant reform since the 1980s, with plans to abolish five ministries and eliminate several government agencies and media outlets. The initiative, led by Communist Party chief To Lam, is part of a strategy to streamline bureaucracy and address a widening budget deficit. The government aims to cut costs and improve efficiency ahead of the National Party Congress in early 2026. While businesses welcome the reforms, concerns remain about potential job losses and delays in policy decisions. The government has indicated that significant redundancy payments will be necessary to support affected civil servants.