Communist Vietnam Follows Libertarian Milei’s Path in a Surprising Turn

The Vietnamese Communist Party has decided to embark on a bold path towards restructuring its state apparatus, following the global trend recently led by other countries. The new plan is inspired by the radical reforms implemented in Argentina by President Javier Milei, which seek to drastically reduce the size of the state and ease the bureaucratic burden.

Under the banner of «administrative reform», the Vietnamese government has announced its intention to reduce approximately 20% of government ministries and agencies, as well as the number of public employees. This historic measure seeks to radically transform a system that many consider obsolete and increasingly complicated.

The strategy involves the elimination of five ministries and the merger of critical areas, such as Finance and Planning and Investment. This merger aims to create a more efficient administration, capable of responding to the economic needs of a developing country.

🇻🇳🇦🇷 | El Partido Comunista de Vietnam quiere copiar el “Plan Motosierra” de Javier Milei en Argentina: Las autoridades comunistas buscan reducir ministerios, agencias estatales y echar empleados públicos.https://t.co/2ZCJZb1ywZ

— La Derecha Diario (@laderechadiario) January 11, 2025

Four state agencies are also expected to be abolished, including the State Capital Management Committee. State media outlets have also been announced to close, including five public television channels, ten newspapers and nineteen magazines, in an attempt to cut costs.

Vietnam’s effort is part of a broader trend that includes simultaneous initiatives in other countries. In Argentina, Javier Milei has already launched the largest public spending cut in history, with the intention of eliminating the fiscal deficit affecting the country.

In the United States, President-elect Donald Trump has promised significant adjustments through the new Department of Government Efficiency, with the collaboration of innovators such as Elon Musk, highlighting the continuity of a global fight against unnecessary bureaucracy.

“This is the boldest administrative reform in Vietnam since the Doi Moi reforms,” said Nguyen Khac Giang, a senior researcher at the ISEAS-Yusof Ishak Institute in Singapore. His analysis indicates that the country is seeking to streamline a bureaucracy that has become a brake on sustained economic growth.

A senior Communist Party official stressed the urgency of these reforms in a recent speech: “Sometimes you have to take bitter medicine, endure pain and remove tumors to have a healthy and strong body.” These statements underscore the seriousness with which the proposed changes are being approached.

The details of this restructuring began to take shape in November, culminating in December with a formal draft requiring the submission of restructuring reports by all bureaucrats. These proposals will be evaluated at extraordinary sessions of the Central Committee and the National Assembly, scheduled for February.

Although the extent of the labor impact is still uncertain, tension is palpable among public employees. A deputy prime minister has estimated that nearly 100,000 jobs could be at risk, creating uncertainty and concern among those working in the public sector.

Recent remarks by a former member of parliament warned that the situation could be even more dire. In his view, hundreds of thousands of employees and party activists would face an uncertain future under these reforms.

The economic situation in Vietnam also plays a crucial role in this process. The General Secretary of the Communist Party stressed in October that nearly 70% of the state budget is spent on salaries and administrative expenses, leaving little room for essential investments in infrastructure and development.

If government officials only use the budget to cover salaries, there will be no resources available for projects that can boost long-term growth. This situation highlights the need for radical change to enable Vietnam to move towards a more robust and competitive economy.

In conclusion, the decision of the Vietnamese Communist Party to draw inspiration from Milei’s Chainsaw Plan may be a milestone in the quest for more efficient administration. The restructuring of the state apparatus not only seeks to reduce costs, but also to lay the foundations for a more prosperous future for the country in the global economic context.

About The Author

Mamela Fiallo Flor

Mamela Fiallo Flor es profesora de lengua e historia, columnista y conferencista. Plasma su amor por la libertad y pasión por la verdad en cada nota.

Mamela Fiallo Flor is a language and history teacher, columnist, and speaker. She conveys her love for freedom and passion for truth in every piece she writes.

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