Vietnam Leader Cuts 147K Jobs, Slashes Red Tape in Months

Vietnam just proved that governments can move fast when leaders commit to cutting red tape and empowering people to build.

In just 17 months, General Secretary To Lam has radically streamlined Vietnam's government. He cut the number of ministries and agencies from 30 to 22 and nearly halved provincial administrations from 63 to 34.

The 68-year-old leader didn't stop at bureaucracy. He pushed ambitious infrastructure projects including new transportation networks and energy facilities, including approving construction of a major opera house in Hanoi that celebrates classical music and culture.

His reforms have directly empowered Vietnam's private sector by removing obstacles that slowed business growth. Decision-making that once crawled through layers of bureaucracy now moves at unprecedented speed.

Lam showed his decisive style during recent trade negotiations. When the United States announced steep tariffs in April, he moved quickly to negotiate. Within months, Vietnam secured a deal that cut the proposed tariff rate from 46% to 20% for most goods.

"He's decisive, impatient with drift," said Nguyen Khac Giang, a visiting fellow at Singapore's ISEAS-Yusof Ishak Institute. The approach has "sped up decision-making" across government.

The Ripple Effect

The streamlining effort has touched every corner of Vietnamese government. Roughly 147,000 government positions have been eliminated or converted to early retirements, representing a massive shift toward efficiency.

For businesses and citizens, the changes mean faster approvals, clearer processes, and more resources flowing to productive work instead of paperwork. Vietnam expert Carl Thayer notes that Lam has "streamlined everything," creating the most dominant and efficient leadership structure the country has seen in decades.

The infrastructure investments are opening new opportunities for Vietnamese workers and businesses. Better transportation networks connect markets, while energy projects power growing industries.

Even international leaders have taken notice of the transformation. Following successful negotiations, one U.S. official called working with Lam "an absolute pleasure," praising the speed and clarity of discussions.

Vietnam's bold experiment in government efficiency shows what's possible when leaders prioritize action over bureaucracy and empower people to succeed.