Vietnam’s laid-off communist officials face uncertain future

HANOI – Sipping green tea in his garden of roses, former communist party official Nguyen Van Cuong said he is “jobless but happy” after Vietnam cut 80,000 state roles recently.

But Ms Nguyen Thi Thu, fretting at home after leaving public employment once considered a job for life, told AFP she feels “empty” over a future that is no longer certain.

Vietnam is in the midst of a dramatic remaking of its state apparatus, with 100,000 positions slated to be scrapped as Hanoi seeks to streamline bureaucracy and boost the economy.

On June 30,

80,000 roles were slashed

as most of the provinces and cities were merged.

Feelings are mixed among newly unemployed apparatchiks – communist party officials whose jobs were once guaranteed.

“It’s really a waste for the state to lose one like myself,” said 56-year-old Mr Cuong, who served in Bac Giang province outside Hanoi. It was merged into a neighbouring province’s administration.

The government said those caught in the overhaul would either be made redundant or offered early retirement.

Mr Cuong told AFP he could have remained in his post – or even been promoted – but chose to accept a US$75,000 (S$95,600) payoff for his remaining six years after a 30-year state career.

“It’s time to rid myself of so much complexity in state politics,” he said.

The mass reorganisation overseen by Vietnam’s top leader To Lam echoes steps taken by US President Donald Trump and Argentine leader Javier Milei to take an axe to government spending towards “efficiency”.

‘Don’t know what’s next’

Ms Thu, a former district-level secretary, admits she may not have been able to manage the burdens of the job as management prioritised performance.

The 50-year-old felt she had no option but to resign when her office was relocated to Mekong delta province An Giang, more than 70km from her home.

“I resigned, not because I wanted to quit my job,” she said. “It’s better to resign rather than wait for a dismissal order.”

Vietnam – a global manufacturing hub – recorded economic growth of 7.1 per cent in 2024 and is aiming for 8 per cent in 2025 as it vies for middle-income country status by 2030.

But it is facing headwinds from the US, a key trade partner.

Mr Trump threatened a 46 per cent tariff before

settling on a 20 per cent rate in a deal announced on July 2

– a levy five times the rate before he took office the second time.

Vietnam’s deputy finance minister said the new administrative structure would bring “strong scale to connect strong business and economic infrastructure” and create “greater socio-economic development”.

Mr Lam, the Communist Party general secretary, said on June 30 “the decision to reshape the nation is a historical landmark with strategic meaning” aiming “to continue our path towards a socialist country... for people’s happiness”.

But for Ms Thu, the way forward is now unclear.

“I don’t know what to do next,” she said.

Mr Cuong, scrolling carefree on his phone and chatting with friends online, said he has few regrets over his voluntary redundancy.

He feels like Vietnam may be the one missing out on what he has to offer.

“I could still contribute more to the state sector,” he said. AFP