HCMC – HCMC will allocate nearly VND17 trillion to compensate 7,159 public sector employees affected by a massive staff reduction. Each individual will receive an average of VND2.7 billion as part of the financial assistance package.
The layoffs are part of an effort to streamline the administration. Officials, civil servants, and public employees impacted by the restructuring will be eligible for compensation. Those who do not meet the criteria for reappointment or re-election will also receive support.
The plan will cut about one-fifth of the city’s public workforce. Affected positions include 521 roles within Party organizations, 2,015 civil service jobs (excluding commune-level staff), and 2,767 salaried public employees. Additionally, 988 commune-level administrative staff, 418 officials managing Party affairs in state-owned enterprises, and 450 individuals ineligible for reappointment due to age will be impacted.
The financial support package consists of early retirement allowances amounting to nearly VND1.6 billion per person under national regulations, along with an additional city-level subsidy of VND1.1 billion per person. The total estimated support per affected person stands at VND2.68 billion.
In addition to workforce reductions, HCMC is restructuring its administrative framework. The Department of Home Affairs has proposed reducing the number of municipal agencies, as well as streamlining Thu Duc City’s administration and district-level entities.
Currently, the city has 21 departments, eight administrative agencies, and 35 public service units. Under the new plan, the number of city-level departments will be cut to 16.
At the local level, Thu Duc City. which is under HCMC, will retain 14 divisions while districts will operate with 10 specialized divisions each.
