As Elon Musk and Argentina’s Javier Milei push to slash government spending in their respective countries, Vietnam’s Communist Party is undertaking a massive reform of its own—one that promises to reshape the state apparatus and eliminate layers of bureaucracy. The overhaul, the largest since Vietnam’s pro-market reforms of the 1980s, aims to cut approximately 20% of ministries, government agencies, and civil service jobs.
The reforms include eliminating five ministries, merging others such as Finance and Planning and Investment, and abolishing four government agencies, including the State Capital Management Committee. Additionally, five state television channels, 10 newspapers, and 19 magazines will be shut down. Communist Party chief To Lam, who took office in August, is spearheading the initiative ahead of the National Party Congress in 2026, framing it as urgent medicine to cure a bloated bureaucracy and reduce costs.
“This is a very urgent issue which must be done,” Lam said in a December speech. “Sometimes we have to take bitter medicine, endure pain, and cut out tumors in order to have a healthy and strong body.”
The reforms follow a years-long anti-corruption crackdown that has weakened provincial power bases and led to high-profile arrests and resignations. Analysts believe this campaign has cleared the way for reforms aimed at achieving Vietnam’s goal of high-income status by 2045.
