Post by : Meena Ariff

Prime Minister Phạm Minh Chính has issued an urgent directive calling for stronger measures to reduce complicated administrative procedures and unnecessary business requirements across Vietnam. This step is also aimed at ensuring the smooth rollout of the new two-tier local governance model, which is designed to improve efficiency, transparency, and accountability in local administration.

The urgent directive builds on the Government’s Resolution No 66/NQ-CP, issued on March 26, 2025, which established a detailed programme to simplify business operations and reduce bureaucratic red tape for the years 2025 and 2026. This resolution forms part of the government’s wider effort to create a more business-friendly environment and enhance the efficiency of public administration.

Progress on Administrative Streamlining

As of now, 10 ministries and agencies have submitted their plans to streamline administrative procedures. Under the oversight of four key ministries, the Prime Minister has already approved proposals that:

• Simplify 1,315 administrative procedures

• Reduce 872 business conditions

• These measures are expected to remove unnecessary hurdles for businesses and improve the overall efficiency of government services.

However, progress across ministries has been uneven. While some ministries have successfully submitted their proposals, three ministries are still awaiting approval, and another three are finalizing their submissions. Despite these delays, the government aims to eliminate 488 procedures and simplify an additional 2,675 procedures this year alone. These changes are significant, representing nearly 75% of all procedures related to production and business activities.

In addition, the government plans to remove 2,028 out of 7,806 business conditions, which is about 26% of all conditions, helping businesses operate more smoothly and reducing unnecessary administrative burdens.

Local Authorities Supporting the Reforms

Local authorities have also been taking steps to improve their administrative systems to support these reforms. They are actively upgrading infrastructure and workflows to align with the two-tier local governance model, which is designed to strengthen local management while keeping services accessible to citizens.

Between July 1 and August 23, 2025, 34 provinces and cities processed 6.5 million administrative cases, including 4.8 million cases at the commune level. This is a 25% increase compared to the same period last year, reflecting the growing efficiency and effectiveness of local administrative services.

These improvements indicate that the government’s efforts to reduce red tape are having a tangible impact at the grassroots level, allowing citizens and businesses to complete administrative procedures faster and with fewer complications.

Challenges and Remaining Issues

Despite the progress, challenges remain. The ministries of health and home affairs have yet to submit their streamlining plans, as required by Resolution No 66. Additionally, the ministries of industry and trade and health are at risk of missing the target to reduce at least 30% of business conditions this year.

To address these challenges, the Prime Minister has instructed ministers, heads of ministry-level agencies, and chairpersons of people’s committees in cities and provinces to take immediate action. Full compliance with the urgent directive is required to ensure that reforms remain on track.

Urgent Deadlines and Responsibilities

The urgent dispatch issued by the Prime Minister on August 4, 2025, lays out clear deadlines and responsibilities for key ministries and local authorities:

• Health and Home Affairs ministries: Submit streamlining proposals no later than August 31, 2025.

• Science and Technology, Foreign Affairs ministries, and Governor of the State Bank of Vietnam: Finalize and submit documentation by August 31, 2025.

• Industry and Trade ministry: Continue reviewing and cutting business conditions using ministry-issued legal documents or by seeking the Prime Minister’s approval to meet the 30% reduction target this year.

• Chairpersons of people’s committees: Review and refine policies and procedures under their jurisdiction, ensuring all assigned deadlines are met.

• Additionally, all relevant units are required to submit monthly progress reports to the Government and the Prime Minister by the 25th of each month, ensuring consistent monitoring and timely corrective action where necessary.

Goals and Importance of the Reforms

The government’s reform programme aims to:

• Make it easier for businesses to start and operate, reducing unnecessary bureaucracy.

• Cut delays in administrative processes, improving efficiency and transparency.

• Ensure consistent and effective local governance through the two-tier model.

• Encourage economic growth and investment by creating a business-friendly environment.

• Improve public services by streamlining procedures and making government operations more citizen-centric.

Prime Minister Phạm Minh Chính emphasized that these reforms are critical not only for supporting businesses but also for attracting investment, enhancing public service quality, and promoting a fair, transparent, and modern governance system.

By simplifying administrative procedures and removing outdated business conditions, the government aims to build a system that benefits both citizens and enterprises. These reforms are expected to reduce obstacles for businesses, accelerate economic activity, and enhance Vietnam’s competitiveness in the global market.

The Prime Minister’s urgent directive signals a determined commitment by the Vietnamese government to continue administrative and business reforms in a structured and disciplined manner. With clearly defined deadlines, monthly progress reviews, and the active involvement of local authorities, the government hopes to create an environment where businesses can thrive, citizens can access services more easily, and governance is more effective at all levels.