The China Mail - Worry, confusion as Vietnam slashes public jobs

USD -
AED 3.672504
AFN 66.242312
ALL 83.179218
AMD 382.091093
ANG 1.790055
AOA 917.000367
ARS 1407.273322
AUD 1.534449
AWG 1.80375
AZN 1.70397
BAM 1.682336
BBD 2.013075
BDT 122.136682
BGN 1.682336
BHD 0.375296
BIF 2949.980646
BMD 1
BND 1.301363
BOB 6.90637
BRL 5.297104
BSD 0.999441
BTN 88.628446
BWP 14.229065
BYN 3.409316
BYR 19600
BZD 2.01015
CAD 1.40305
CDF 2174.000362
CHF 0.795331
CLF 0.023592
CLP 930.299772
CNY 7.09955
CNH 7.10029
COP 3744.269064
CRC 500.9677
CUC 1
CUP 26.5
CVE 94.847533
CZK 20.805104
DJF 177.979442
DKK 6.425804
DOP 64.375726
DZD 129.671842
EGP 46.987226
ERN 15
ETB 154.855963
EUR 0.86005
FJD 2.27535
FKP 0.759703
GBP 0.760427
GEL 2.703861
GGP 0.759703
GHS 10.944045
GIP 0.759703
GMD 72.503851
GNF 8675.755881
GTQ 7.660746
GYD 209.074878
HKD 7.777304
HNL 26.293923
HRK 6.482904
HTG 130.936304
HUF 330.790388
IDR 16712
ILS 3.227704
IMP 0.759703
INR 88.689504
IQD 1309.363038
IRR 42100.000352
ISK 126.820386
JEP 0.759703
JMD 160.526429
JOD 0.70904
JPY 154.03504
KES 129.284762
KGS 87.450384
KHR 4009.289923
KMF 424.00035
KPW 899.992823
KRW 1448.530383
KWD 0.30669
KYD 0.83291
KZT 523.900047
LAK 21688.529526
LBP 89503.763279
LKR 306.567459
LRD 181.40295
LSL 17.141542
LTL 2.95274
LVL 0.60489
LYD 5.452669
MAD 9.241323
MDL 16.871532
MGA 4468.625005
MKD 52.922455
MMK 2099.201903
MNT 3573.89283
MOP 8.00215
MRU 39.576792
MUR 45.650378
MVR 15.403739
MWK 1733.086749
MXN 18.318804
MYR 4.132504
MZN 63.950377
NAD 17.141542
NGN 1440.780377
NIO 36.781214
NOK 10.088804
NPR 141.805514
NZD 1.77195
OMR 0.382771
PAB 0.999441
PEN 3.370436
PGK 4.226055
PHP 59.015038
PKR 282.529182
PLN 3.638123
PYG 7042.277751
QAR 3.643198
RON 4.374304
RSD 100.795665
RUB 80.873941
RWF 1452.75472
SAR 3.733087
SBD 8.244163
SCR 14.010372
SDG 601.503676
SEK 9.449304
SGD 1.297504
SHP 0.750259
SLE 23.403667
SLL 20969.498139
SOS 570.212034
SRD 38.589504
STD 20697.981008
STN 21.074362
SVC 8.74543
SYP 11056.850738
SZL 17.134747
THB 32.405038
TJS 9.225238
TMT 3.51
TND 2.938884
TOP 2.40776
TRY 42.170504
TTD 6.777343
TWD 30.569504
TZS 2448.754892
UAH 42.002581
UGX 3568.01858
UYU 39.766032
UZS 12033.030837
VES 236.162804
VND 26350
VUV 121.850043
WST 2.813716
XAF 564.239818
XAG 0.01978
XAU 0.000245
XCD 2.70255
XCG 1.801299
XDR 0.701733
XOF 564.239818
XPF 102.584835
YER 238.525037
ZAR 17.08336
ZMK 9001.203584
ZMW 22.46355
ZWL 321.999592
  • RIO

    -0.4100

    70.63

    -0.58%

  • CMSC

    -0.0100

    23.82

    -0.04%

  • NGG

    -0.7100

    77.38

    -0.92%

  • BTI

    -0.3500

    54.13

    -0.65%

  • SCS

    0.0800

    15.7

    +0.51%

  • GSK

    -0.5429

    47.18

    -1.15%

  • BCC

    -0.1400

    69.04

    -0.2%

  • JRI

    0.0135

    13.65

    +0.1%

  • CMSD

    0.1472

    23.99

    +0.61%

  • BCE

    -0.2800

    22.83

    -1.23%

  • BP

    0.5392

    36.53

    +1.48%

  • RYCEF

    -0.3600

    14.55

    -2.47%

  • VOD

    -0.0900

    12.32

    -0.73%

  • RELX

    -0.0900

    41.33

    -0.22%

  • AZN

    0.4900

    89.1

    +0.55%

  • RBGPF

    0.0000

    75.65

    0%

Worry, confusion as Vietnam slashes public jobs
Worry, confusion as Vietnam slashes public jobs / Photo: © AFP/File

Worry, confusion as Vietnam slashes public jobs

Senior Vietnamese official Nguyen Linh believes he has much more to give in the job he has worked his whole life but will soon retire as part of a radical government cost-cutting drive approved last week.

Text size:

Across Vietnam, confused public sector workers have been left reeling as ministries are scrapped and merged in a drastic attempt to slash billions of dollars from spending.

The ruling Communist Party aims to cut one in five public sector jobs, many of which were seen as secure positions for life.

Some employees are waiting to hear if their position will go, while others have been given less than 24 hours to decide to fight for their post or take early retirement.

The reforms, which mirror US President Donald Trump's push to take a hatchet to government spending, are creating unease in a communist country where working for the state is seen as a cradle-to-grave social safety net.

The shake-up has been described as "a revolution" by senior officials, and will see the number of government ministries and agencies slashed from 30 to 22.

The ministries of transport, planning and investment, communications and labour have been abolished, and state media, the civil service, police and military all face cuts.

Linh, a pseudonym to protect his identity, works for one of the newly merged ministries and said he had chosen early retirement "to escape the complicated political environment".

"I think I am fit to continue my work and I still have experience that I can share with other staff," the 54-year-old told AFP. "But I have made the right decision."

"Although I support this streamlining drive, things have progressed so fast and unpredictably," he said.

Linh will receive around $100,000 when he leaves, but others who have lost their jobs are anxiously awaiting news of compensation.

Several journalists working for state media told AFP they were laid off with little notice, with one saying he had turned to driving a taxi after his 12-year career as a TV producer was suddenly terminated last month.

- 'Human costs' -

Almost two million people worked in Vietnam's public sector as of 2022, according to the government, although the International Labour Organization puts the figure much higher.

One in five of these jobs will get the chop over the next five years.

The government has said that 100,000 people will be made redundant or offered early retirement, but it has yet to explain how it will reach the much larger target.

"There are real human costs to these pushes for efficiency," said Zachary Abuza, a Southeast Asian politics expert at the National War College in Washington, DC, explaining it was not clear if the private sector could absorb them all.

"Think about the state media folks. It's not like there's a robust private media for them to move into," he added, referencing the fact that all media in Vietnam, a one-party state, is government controlled.

Even for those who stay, like Le Thu Thuy, an administrator in another newly merged government ministry, there is huge uncertainty.

Before the reorganisation of the ministry becomes clear, "we will have so many bosses and staff", the 52-year-old said.

"What are they all going to do here?"

- 'Sizeable war chest' -

Building on stellar economic growth of 7.1 percent in 2024, Vietnam -- a global manufacturing hub heavily reliant on exports -- is aiming for eight percent this year.

But a bloated bureaucracy is seen as a brake on growth, as is a high-profile anti-corruption campaign that has slowed everyday transactions.

Authorities say savings from the cuts in spending could total $4.5 billion (113 trillion dong) over the next five years, despite costs of more than $5 billion for retirement and severance packages.

Abuza said the government could dip into a "sizeable war chest" built up through exports and foreign exchange reserves.

"They can do this without causing too much financial harm," he told AFP, "and I think they're assuming that they will be rewarded with further investment down the line".

The anti-graft campaign has swept up dozens of business leaders and senior government figures, threatening the country's reputation for stability.

There are fears the bureaucratic reforms could also cause short-term disruption, although the foreign affairs ministry denied the investment and business environment would be affected.

Among those not directly impacted, the reaction was mixed. Some welcomed the move to create a better business environment, but others described the reforms as chaotic and urged caution.

"Ideally, there should be a small-scale pilot," an 85-year-old army veteran, who declined to be named, told AFP, adding it should be gradually expanded "only when it shows positive results".

"I joined the army in 1958 to unite this country," the veteran said.

"No-one expected the liberation would lead to the chaos of this situation today."

V.Fan--ThChM