Decentralization of State Management in Vietnam from 01/07/2025

In 2025, a significant turning point in administrative reform in Vietnam was marked by the Government’s simultaneous promulgation of 28 decrees on the delegation, decentralization, and delineation of authority between the central Government and the two-tier local government system. These decrees take effect from July 1, 2025, to March 1, 2027 (unless extended by competent authorities), thereby ensuring uniform implementation of administrative reforms nationwide. This strategic move aims to realize the two-tier local government model as stipulated by the National Assembly’s Resolution. Below is a summary of the key provisions by Viet An Law Firm on decentralization of state management in Vietnam from 01/07/2025.

28 Decrees on Decentralization of State Management

Summary of legal documents on decentralization of state management in Vietnam from 01/07/2025

The Government has promulgated 28 Decrees on the delegation, decentralization, and delineation of authority between the central Government and the two-tier local government system. These Decrees take effect simultaneously from July 1, 2025, and include the following:

1. Decree No. 120/2025/ND-CP on delineating the authority of two-tier local governments in the field of state management under the Ministry of Justice.
2. Decree No. 121/2025/ND-CP on delegation and decentralization in the field of state management under the Ministry of Justice.
3. Decree No. 122/2025/ND-CP on delegation and decentralization in the field of tax administration.
4. Decree No. 124/2025/ND-CP on delegation, decentralization, and delineation of authority of two-tier local governments in the fields of ethnic affairs, belief, and religion.
5. Decree No. 125/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Finance.
6. Decree No. 126/2025/ND-CP on delegation and decentralization in the field of national reserves.
7. Decree No. 127/2025/ND-CP on decentralization of state management authority in the management and use of public assets.
8. Decree No. 128/2025/ND-CP on delegation and decentralization in the field of internal affairs.
9. Decree No. 129/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Home Affairs.
10. Decree No. 130/2025/ND-CP on delegation and decentralization in the field of statistics.
11. Decree No. 131/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Agriculture and Environment.
12. Decree No. 132/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Science and Technology.
13. Decree No. 133/2025/ND-CP on delegation and decentralization in the field of state management under the Ministry of Science and Technology.
14. Decree No. 134/2025/ND-CP on delegation and decentralization in the field of foreign affairs.
15. Decree No. 136/2025/ND-CP on delegation and decentralization in the fields of agriculture and environment.
16. Decree No. 137/2025/ND-CP on delineation of authority of two-tier local governments in the fields of culture, sports, and tourism.
17. Decree No. 138/2025/ND-CP on delegation and decentralization in the fields of culture, sports, and tourism.
18. Decree No. 139/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Industry and Trade.
19. Decree No. 140/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Construction.
20. Decree No. 141/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Government Inspectorate.
21. Decree No. 142/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Education and Training.
22. Decree No. 143/2025/ND-CP on delegation and decentralization in the field of state management under the Ministry of Education and Training.
23. Decree No. 144/2025/ND-CP on delegation and decentralization in the field of state management under the Ministry of Construction.
24. Decree No. 145/2025/ND-CP on delineation of authority of two-tier local governments, delegation, and decentralization in the field of urban and rural planning.
25. Decree No. 146/2025/ND-CP on delegation and decentralization in the fields of industry and commerce.
26. Decree No. 147/2025/ND-CP on delineation of authority of two-tier local governments in the field of state management under the Ministry of Health.
27. Decree No. 148/2025/ND-CP on delegation and decentralization in the field of health.
28. Decree No. 151/2025/ND-CP on delineation of authority of two-tier local governments, delegation, and decentralization in the field of land management.

To access these Decrees, the public may visit the official website at vanban.chinhphu.vn.

Scope and Scale of Decentralization

In line with the Government’s policy to implement a two-tier local government model and eliminate district-level administrative management as outlined in Resolution No. 74/NQ-CP of 2025, the 28 newly issued Decrees have restructured authority and the organizational framework of state management across almost all sectors. These reforms cover ministries and government-affiliated agencies, and are categorized into four major sectoral groups as follows:

Socio-Economic Ministries:

• Ministry of Finance (Decree No. 125/2025/ND-CP and Decree No. 122/2025/ND-CP on tax)
• Ministry of Agriculture and Environment (Decree No. 131/2025/ND-CP and Decree No. 136/2025/ND-CP)
• Ministry of Industry and Trade (Decree No. 139/2025/ND-CP and Decree No. 146/2025/ND-CP)
• Ministry of Construction (Decree No. 140/2025/ND-CP and Decree No. 144/2025/ND-CP)

Cultural and Social Ministries:

• Ministry of Education and Training (Decree No. 142/2025/ND-CP and Decree No. 143/2025/ND-CP)
• Ministry of Health (Decree No. 147/2025/ND-CP and Decree No. 148/2025/ND-CP)
• Ministry of Culture, Sports and Tourism (Decree No. 137/2025/ND-CP and Decree No. 138/2025/ND-CP)

Administrative and Legal Ministries:

• Ministry of Justice (Decree No. 120/2025/ND-CP and Decree No. 121/2025/ND-CP)
• Ministry of Home Affairs (Decree No. 128/2025/ND-CP and Decree No. 129/2025/ND-CP)
• Government Inspectorate (Decree No. 141/2025/ND-CP)

Specialized Fields:

Science and Technology: Decrees No. 132/2025 and 133/2025 on delineation of authority and delegation of powers in the field of science and technology.Foreign

Affairs: Decree No. 134/2025 on delegation of powers in the field of foreign affairs.

Sectoral Management

• National Reserves (Decree No. 126/2025)
• Statistics (Decree No. 130/2025)
• Public Assets (Decree No. 127/2025)

Key new provisions on decentralization of state management in Vietnam from 01/07/2025

Key new provisions on decentralization in 28 new Decrees

Land Management

Decree No. 151/2025/ND-CP marks a breakthrough by delegating the authority to formulate land use planning to the commune-level authorities. For the first time, communes are granted autonomy in the following:

• Analyzing and assessing natural, economic, and social conditions;
• Defining viewpoints and objectives for land use by land categories;
• Preparing commune-level land use planning maps.

Under the new regulations on land registration procedures, citizens are now allowed to submit application dossiers anywhere within the provincial territory, rather than being restricted by administrative boundaries.

Belief and Religious Affairs – Strengthening Local-Level Management

Decree No. 124/2025/ND-CP clearly defines responsibilities for receiving notifications regarding festival organization:

• Commune level receives notifications for festivals held within a single commune.
• Provincial level receives notifications for festivals covering multiple communes within the province.

Agriculture and Environment

Pursuant to Decree No. 136/2025/ND-CP, several procedures have been decentralized to the provincial level, including:

• Licensing the import of fertilizers and plant varieties;
• Issuing professional practice cards for quarantine pest treatment personnel;
• Accrediting organizations conducting trials of plant varieties and fertilizers;
• Granting certificates of eligibility for fertilizer production.

Thus, this significant decentralization reduces the burden on central ministries, saves time and compliance costs for businesses, and enhances the proactivity of local authorities in sectoral management.

Culture, sports, tourism

Fireworks management: The Chairman of the Provincial People’s Committee has the authority to decide on the organization of explosive fireworks, change the firing range and duration, instead of requesting the ministerial and Prime Minister levels for this procedure.

Culture, Sports, and Tourism

Fireworks Management: The Chairman of the Provincial People’s Committee has the authority to decide on organizing fireworks displays, adjusting shooting range and duration, without requiring a proposal to the Ministry or the Prime Minister for this procedure.

Press Management: Decree No. 138/2025/NĐ-CP delineates the authority for press management between the two levels of local government.

Education and Training: Commune-level authorities have the authority to formulate and approve educational development plans within their jurisdiction, in alignment with the provincial strategy and the local development plan, in accordance with Clause 1, Article 41 of Decree No. 142/2025/NĐ-CP.

In addition, many new authorities have been delegated from the district-level government (previously) to the commune level. For example, in the following areas:

Finance: Decree No. 125/2025/ND-CP has stipulated a series of transferable powers such as Bidding (Articles 9-11), Compulsory purchase, requisition of assets, land finance (Article 13); Decision on establishment and approval of the plan for handling property with established ownership of the whole people (Article 20) …

Industry and Trade Sector: Decree No. 139/2025/NĐ-CP has delegated several authorities to commune-level People’s Committees, such as: approval of disaster response plans for downstream areas of hydropower dams under the commune’s jurisdiction; issuance, reissuance, amendment, and supplementation of licenses for retail sale of tobacco products; licenses for traditional alcohol production and retail alcohol sales; and certificates of eligibility for bottled LPG retail stores.

Construction Sector: The commune-level People’s Committee is currently authorized to issue construction permits for Grade III and Grade IV projects, as well as for individual houses within its jurisdiction, and for projects delegated by the provincial People’s Committee; to grant temporary usage permits for roadways; and to issue construction permits for roads within the commune’s area.

Water Resources: The commune-level People’s Committee has the authority to grant permits and services related to water resources, as well as to collect fees for water resource exploitation rights.

Social Protection: The commune-level People’s Committee is authorized to decide on the issuance, reissuance, adjustment, temporary suspension, revocation, and withdrawal of operation licenses for social assistance facilities within its jurisdiction.

Principles and Implementation Mechanisms

Principles of decentralization and delegation

Pursuant to the Law on Government Organization 2025, decentralization and delegation must comply with the following principles:

Decentralization: The National Assembly stipulates the tasks and powers of agencies in laws and resolutions, ensuring conformity with the principle of delineation of authority.

Delegation: An authorized agency may continuously assign certain tasks and powers to another agency under the conditions that:

• Effective implementation of the tasks is ensured;
• The delegated agency takes full responsibility for the outcomes;
• The delegation must be prescribed in a legal document.

Conditions and requirements

• Appropriate to local conditions: Decentralization must be suitable to the conditions, characteristics, resources, and capacities of the locality.
• Enhancing autonomy: Ensure the initiative and autonomy of local governments in decision-making and implementation.
• Supervisory responsibility: Central government agencies are responsible for guiding and coordinating with local governments.

Impacts and Significance of 28 Legal Documents on Decentralization of State Management

For citizens and businesses

• The decentralization of many administrative procedures to local levels helps citizens and businesses save travel time and reduce compliance costs.
• It increases convenience by allowing citizens to complete many procedures locally without having to go to the provincial or ministerial levels.
• Clear delineation of authority helps avoid overlap and confusion during the process of handling dossiers.

For management agencies

• Delegation allows agencies to focus on core and strategic tasks.
• Superior agencies do not have to handle tasks that can be assigned to subordinate levels.
• Authorized localities will proactively invest in improving capacity and expertise.

For the political system

• Materialize the two-tier model, providing a solid legal basis for implementing the two-level local government model.
• Empower localities with greater autonomy managing and serving the people.
• Promote administrative reform and modernization of the state apparatus.

The compilation of legal documents on decentralization of state management represents a significant milestone in Vietnam’s administrative reform. The successful implementation of these decrees not only enhances the efficiency of state management but also facilitates citizens and businesses, thereby promoting socio-economic development.

With the new regulations changing the majority of current administrative procedures, citizens urgently need legal support from specialized units. Viet An Law is ready to assist you in adapting to Vietnam’s new era, helping citizens operate their businesses more conveniently during this transition period. Please contact us for timely support!