The BGA Vietnam Team wrote a client update on the restructuring of Vietnam’s Communist Party Central Committee (CCCPV).

Context

  • The CCCPV held its 11th plenum from April 10-12 in Hanoi. The committee discussed critical issues, including local restructuring, socioeconomic development for 2025-2030, personnel plans for 2026-2031, constitutional amendments and disciplinary actions. The meeting occurred as Vietnam negotiated with the United States on tariffs and just before it hosted a visit from Chinese President Xi Jinping. The party is also preparing to organize its next five-year congress in early 2026.
  • Local restructuring will likely cause some delays in decision-making for businesses, especially during the transition period. Changes to local administrative stakeholders are expected following the merger of provinces. Additionally, the restructuring could affect costs and land rents in certain areas, especially in the provinces that will be merged into cities.

Significance

  • Following the conclusion of the plenum, the CCCPV issued Resolution No. 60/NQ-TW, which outlined the outcomes of the meeting. The highlights of the resolution are as follows:
    • The party approved a reduction in the number of provinces and cities from 64 to 34 (28 provinces and six cities).
    • Vietnam’s leaders set a GDP growth target of 8 percent for 2025 and the next five years.
    • The Politburo will finalize the personnel plan and nominate new members to the CCCPV.
    • Officials dismissed Nguyen Van Hieu, former vice chairman of the Central Committee on Propaganda, Education and Mass Mobilization, from the CCCPV. It also stripped all titles from Truong Hoa Binh, former Politburo member and deputy prime minister.
  • Revisions of the constitution and legislation for the purpose of restructuring are required to take effect beginning July 1. The new system should be operational in October.

Implications

  • Given the reduction in the number of ministries and provinces due to political restructuring, the number of CCCPV and National Assembly members is expected to decrease accordingly. Retiring members are unlikely to be replaced, providing an opportunity for existing qualified members to continue for another term. Candidates will undergo multiple rounds of screening and voting before final selections.
  • Amid the potential impact of new U.S. tariffs on the economy, Vietnam’s leadership remains committed to its previously established GDP growth target of 8 percent for 2025 and achieving double-digit growth in the years beyond. Speaking at the plenum, General Secretary To Lam reaffirmed Vietnam’s long-term vision of becoming a developed nation with a modern industrial base and attaining upper middle-income status by 2030, with aspirations of becoming a high-income developed country by 2045.

We will continue to keep you updated on developments in the Vietnam as they occur.

Best regards,

BGA Vietnam Team

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