Merging Government Ministries
Updated: 5 days ago
In a sweeping move that underscores its commitment to modernization, Vietnam’s government is consolidating key ministries in 2025, reducing bureaucracy and paving the way for innovation. This includes the merger of the Ministry of Planning and Investment with the Ministry of Finance, alongside other strategic integrations. These reforms aim to streamline governance, foster collaboration, and unlock new opportunities for businesses and citizens alike.
Led by General Secretary To Lam, this transformative initiative is part of a broader vision to make Vietnam a regional leader in economic and technological progress. This article explores how these reforms will shape key sectors, including fintech, agritech, and other start-ups, while showcasing the early achievements of To Lam’s administration.
1. A Government Ready for the Future
Vietnam’s consolidation of ministries marks a departure from the inefficiencies of the past. Among the notable mergers:
Ministry of Planning and Investment with the Ministry of Finance, creating a unified hub for economic planning, investment approvals, and financial oversight.
Ministry of Science and Technology with the Ministry of Information and Communications, ensuring a streamlined approach to digital transformation and technological innovation.
Ministry of Natural Resources and Environment with the Ministry of Agriculture and Rural Development, promoting sustainable resource management and agricultural advancement.
This reform is not only about cutting red tape but also about enhancing the government's ability to respond to the needs of businesses and citizens. By reducing overlapping responsibilities, Vietnam is creating a governance model that is more agile, transparent, and responsive to global challenges.
Under To Lam’s leadership, these changes have been implemented with remarkable speed and precision. Known for his decisive and pragmatic approach, To Lam has reinvigorated the government’s drive toward modernization, earning widespread praise from business leaders and policy experts alike.
2. The Promise of Streamlined Governance
The principle of streamlined governance is simple: fewer barriers, faster results. Vietnam’s reforms reflect global best practices, such as Elon Musk’s DOGE initiative in the U.S., which demonstrated how reducing administrative layers fosters accountability and innovation.
For example, consolidating investment approvals and financial regulations into a single ministry will drastically cut the time required for project licensing. An agritech start-up, for instance, that once had to secure separate permits from multiple ministries for land use and agricultural investment can now navigate a unified process. This efficiency not only accelerates business development but also attracts foreign investors eager for predictability and clarity.
3. Boosting Fintech and Start-Ups
One of the most significant beneficiaries of these reforms will be Vietnam’s fintech sector, particularly companies like 1Long, which specializes in digital investment and savings solutions. Under the new structure, licensing for financial services will be streamlined, with the State Securities Commission (SSC) falling directly under the Ministry of Finance. This reduces delays, simplifies compliance, and encourages the development of innovative financial products.
1Long is poised to take full advantage of these changes, offering digital platforms that empower individuals to grow their savings and make smarter investment choices. The centralized governance model also lowers entry barriers for new fintech players, fostering competition and innovation in a rapidly growing sector.
Beyond fintech, Vietnam’s agritech industry is set to thrive. Start-ups leveraging AI, IoT, and blockchain to optimize agricultural productivity will benefit from the merger of ministries overseeing natural resources and agriculture. Entrepreneurs working on sustainable farming solutions, for instance, can look forward to faster approvals and more cohesive government support.
Consider the story of a young entrepreneur in Hanoi developing an AI-powered platform for smallholder farmers to optimize crop yields. Previously, securing funding, land use permits, and environmental clearances would have taken months, involving multiple ministries. With the new streamlined approach, this entrepreneur can focus on scaling their solution, bringing transformative change to Vietnam’s agriculture sector.
4. Expanding Opportunities for Innovation
Vietnam’s reforms are also opening doors for start-ups in diverse sectors beyond fintech and agritech. Companies like Vinnovators, which provides consultation services to help foreign businesses navigate Vietnam’s regulatory landscape, are well-positioned to benefit. A simplified administrative system reduces the complexity of setting up operations, making Vietnam an even more attractive destination for international entrepreneurs.
Start-ups in education technology, healthtech, and green energy are also likely to gain momentum as regulatory processes become more cohesive. For example, edtech firms developing digital learning platforms for rural communities can now collaborate more effectively with the Ministry of Science and Technology, which will also oversee information and communication strategies under its new mandate.
To Lam’s administration has recognized that innovation thrives when businesses are unburdened by bureaucracy. By creating an ecosystem that rewards agility and creativity, the government is empowering a new generation of entrepreneurs to contribute to Vietnam’s growth story.
5. A Nation Poised for Transformation
The 2025 ministerial reforms are more than just a structural adjustment—they symbolize Vietnam’s ambition to lead in a competitive global economy. These changes, spearheaded by General Secretary To Lam, reflect a government deeply committed to building a future-ready nation.
Under this new governance model, Vietnam is not just streamlining operations; it is fostering collaboration, enhancing transparency, and enabling its citizens to achieve their fullest potential. Stories like the young agritech entrepreneur are just the beginning of what this bold initiative promises to deliver.
With a unified focus on efficiency and innovation, Vietnam is positioning itself as a beacon of opportunity in Southeast Asia. The next chapter in the country’s development will be defined by the vision of leaders like To Lam and the ingenuity of its people.
Stay tuned for Part 2, where we’ll explore sweeping new regulations to banking, credit, and the mass adoption of the CCCD ID.
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