Vietnam Plans Major Cuts to Public Sector Jobs and Government Spending

Vietnam is set to cut one in five public sector jobs and reduce government spending by billions of dollars. This move, which will soon be presented to parliament, mirrors US President Donald Trump’s approach to reducing government costs. The plan is causing concern in a country where state jobs have traditionally been seen as secure, lifetime positions.

Vietnam’s top leader, To Lam, has called for reforms, stating that state agencies should not be “safe havens for weak officials.” The government plans to reduce the number of ministries and agencies from 30 to 22 and make cuts across various sectors, including the media, civil service, police, and military.

Almost two million people worked in the public sector in 2022, and the government aims to eliminate 20% of those jobs over the next five years. Around 100,000 workers will be made redundant or offered early retirement, although the government has not clarified how the larger target will be achieved. Some workers, like Thanh, a TV producer, have already lost their jobs.