The central budget supports 100 billion VND for each reduced provincial administrative unit and 500 million VND for each reduced commune administrative unit.
National Assembly Chairman Tran Thanh Man signed and issued Resolution No. 76/2025 of the National Assembly Standing Committee on administrative unit arrangement in 2025.
Merged provinces receive 100 billion VND in support
Regarding the budget for implementing administrative unit arrangement, the National Assembly Standing Committee stipulates the decentralization of the State budget to implement the development of administrative unit arrangement projects; organize propaganda and mobilization; organize public opinion collection; resolve regimes and policies for cadres, civil servants, public employees, and workers affected by administrative unit arrangement and other necessary tasks due to administrative unit arrangement.
The budget for implementing administrative unit reorganization is guaranteed by the local budget. Provinces and centrally-run cities are allowed to use regular funds from the state budget allocated during the budget stabilization period to pay for tasks when implementing administrative unit reorganization.
"The central budget provides one-time support to provinces and centrally-run cities to receive additional budget balance at the rate of 100 billion VND for each reduced provincial-level administrative unit and 500 million VND for each reduced commune-level administrative unit from the central budget reserve in 2025," the resolution stated.
Based on the ability to balance the local budget and the support source of the central budget, the provincial People's Committee shall decide on specific expenditure tasks to organize the implementation of administrative unit arrangement and decide on the specific support level for each commune-level administrative unit to implement the arrangement, and report to the People's Council of the same level at the nearest session.
According to the direction approved by the Central Government, 11 provinces and cities will remain the same, including: Hanoi, Hue, Lai Chau, Dien Bien, Son La, Lang Son, Quang Ninh, Thanh Hoa, Nghe An, Ha Tinh, Cao Bang. 52 localities will be merged into 23 provinces and cities. The whole country will have 28 provinces and 6 centrally-run cities.
Local government will be organized at two levels: provincial level (province, centrally-run city) and communal level (commune, ward, special zone). The district level will cease to operate after the National Assembly passes amendments and supplements to the 2013 Constitution and the 2025 Law on Organization of Local Government.
It is expected that the country will reduce about 60 - 70% of the current number of commune-level administrative units.
Provincial and communal standards formed after the arrangement
According to the request of the National Assembly Standing Committee, the development of a plan to rearrange provincial and communal administrative units must take into account factors such as natural conditions, traffic infrastructure, distribution and organization of economic spaces to ensure maximum promotion of the potential and advantages of economic development of each locality, and mutual support to promote the overall socio-economic development of the administrative unit after the rearrangement.
In addition, it is necessary to carefully consider factors such as the level and management capacity of local Party committees and authorities, the level of digital transformation, and the application of information technology by local authorities and people.
At the same time, ensure requirements on national defense and security, build solid defense zones in key areas, island areas, archipelagos and border areas; preserve and promote historical, cultural and ethnic traditions of each locality; ensure solidarity of the community.
"In case of implementing the arrangement of commune-level administrative units that changes the boundaries of district-level administrative units, it is not necessary to follow the procedures for adjusting the boundaries of the district-level administrative unit to which the commune-level administrative unit belongs," the resolution stated.
Resolution No. 76/2025 stipulates that provincial-level administrative units formed after the arrangement must meet the standards on natural area and population size of the corresponding administrative unit as prescribed in the Resolution of the National Assembly Standing Committee on standards of administrative units and classification of administrative units.
In case a province is reorganized to become a centrally-run city, the province formed after the reorganization must basically meet the standards on natural area and population size of a centrally-run city.
At the commune level, the provincial People's Committee is responsible for developing and selecting a plan to arrange commune-level administrative units suitable to the characteristics of rural, urban, island, mountainous, highland, border, plain, and ethnic minority areas and meeting the four orientations.
One is a mountainous commune or highland area formed after the rearrangement with a natural area of 200% or more and a population size of 100% or more of the standards of the corresponding commune prescribed in the Resolution of the National Assembly Standing Committee on standards of administrative units and classification of administrative units.
Second, a commune formed after the rearrangement not covered by Point a and Point d of this Clause has a population size of 200% or more and a natural area of 100% or more of the standards of the corresponding commune prescribed in the Resolution of the National Assembly Standing Committee on standards of administrative units and classification of administrative units.
Third, wards formed after the rearrangement have a natural area of 5.5 km² or more; for wards in centrally-run cities, the population is 45,000 or more; wards in provinces formed after the rearrangement in mountainous, highland, and border areas have a population of 15,000 or more; the remaining wards have a population of 21,000 or more.
Fourth, the arrangement of commune-level administrative units under district-level administrative units in islands must ensure national defense and security requirements and follow the orientation approved by competent authorities.
The Resolution clearly states that the arrangement of provincial-level administrative units is the merging of provinces with provinces to form new provinces or the merging of provinces with centrally run cities to form new centrally run cities according to the arrangement orientation approved by competent authorities to reduce the number and increase the scale of administrative units, expand development space, and maximize the potential and advantages of localities.
The arrangement of commune-level administrative units is the establishment, dissolution, merger, division of administrative units, and adjustment of the boundaries of commune-level administrative units to ensure appropriate quantity and scale. The whole country will reduce the number of commune-level administrative units by about 60-70% compared to present, meeting the requirements of organizing local government at the commune level close to the people, operating effectively, efficiently, and effectively.
In case of arranging wards with administrative units of the same level, the administrative unit formed after the arrangement is the ward; in case of arranging communes and towns, the administrative unit formed after the arrangement is the commune.