On February 19, 2025, the National Assembly passed the Law on Organization of Local Government 2025, which takes effect from March 1, 2025. From a general view, the Law on Organization of Local Government 2025 clearly reflects the principle and spirit of streamlining the administrative apparatus in organizing local government while enhancing the flexibility, proactiveness, and accountability of government authorities at all levels in public administration, in line with the new circumstances of the country.
1. Flexibility in Decision-Making Regarding the Organization of Local Government at All Levels
The Law on Organization of Local Government 2025 continues to stipulate the principle of organizing local government at three levels: provincial, district, and communal, as at present. However, the Law provides that in cases where the National Assembly decides not to organize a local government at a specific administrative unit, the local government at that unit will consist only of the People's Committee and will not include the People's Council.
2. Encouraging and Creating Flexible Mechanisms for Decentralization and Delegation
Previously, the Law on Organization of Local Government 2015 addressed the decentralization between higher-level agencies and lower-level agencies or between local government agencies and specialized agencies at the same level. However, the Law restricted decentralization to cases explicitly provided by law and stipulated that the delegated level could not further delegate or authorize other agencies or organizations.
However, the Law on Organization of Local Government 2025 expands the scope of cases where local governments can be decentralized or delegated to other agencies and organizations by allowing the National Assembly to approve additional cases not stipulated in the Law. At the same time, it allows decentralized or delegated agencies to further delegate or authorize other agencies and organizations in accordance with the provisions of the Law and/or Resolutions of the National Assembly.
In addition, the Law on Organization of Local Government 2025 also provides for cases in which local government agencies may delegate authority to affiliated public service units instead of only delegating authority to lower-level government agencies or specialized departments, as previously regulated. Organizing state management activities through public service units operating under the self-governance mechanism will improve efficiency, reduce costs, and contribute to minimizing administrative procedures and bureaucratic barriers.
3. Allowing Provincial Governments to Decide on Urgent Matters in the Absence of Legal Provisions
The Law on Organization of Local Government 2025 provides for a shift in approach, stipulating only the principles regarding duties and powers (instead of specifying detailed duties and powers in each specific sector as previously regulated) to create greater flexibility in the operations of local government agencies.
Furthermore, the Law emphasizes the responsibility and flexibility of the People's Council and People's Committee at the provincial level by granting them certain special powers, allowing them to apply specific mechanisms not yet regulated by the Law to address local difficulties. Specifically:
- The Provincial People's Council is authorized to, based on the Party's policies, decide to implement pilot programs for special policies that have not yet been provided for in the law in order to promote economic and social development in the locality after reporting to and obtaining approval from the Prime Minister.
- The Provincial People's Committee is authorized to delegate to the Chairman of the People's Committee the authority to review and decide on urgent matters that need immediate resolution within the People's Committee’s jurisdiction or matters that have been agreed upon in terms of policy and principles by the People's Committee, except in cases where the Law prohibits delegation.
- The Chairman of the Provincial People's Committee is authorized to implement other urgent measures beyond the provisions of the law in cases of absolute necessity to protect national interests, prevent and combat natural disasters and epidemics, and ensure the safety of people's lives and property within the locality. These decisions must then be reported to the competent authorities of the Party and the Prime Minister as soon as possible.
These provisions are new regulations that enhance the responsibility of local government agencies, reduce dependence on central government agencies, and increase the autonomy of local governments.
The Law on Organization of Local Government 2025 takes effect from March 1, 2025.
Within two years from the effective date of the Law on Organization of Local Government 2025, all legal normative documents containing provisions on the duties and powers of local governments at all levels must be amended and supplemented to ensure compliance with the principles stipulated in the Law.
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