Redundant Ho Chi Minh City officials may receive $105,016 in severance amid government streamlining

Ho Chi Minh City estimates that around 6,291 civil servants, employees, and workers will be affected by the ongoing restructuring of the local government apparatus, and each affected individual may be eligible for VND2.68 billion (US$105,016) in severance.

The Ho Chi Minh City People’s Committee has submitted a proposal to the municipal People’s Council outlining additional support policies for civil servants, public employees, and workers affected by the streamlining of administrative units. 

The restructuring is expected to reduce the number of Party-related officials by 521 people, non-commune civil servants by 2,015, and public employees paid by the state budget by 2,767.

Additionally, 988 civil servants will be let go due to the restructuring of administrative units at the commune level.

Thus, a total of 6,291 civil servants, public employees, and workers will lose their jobs during the restructuring process.

The Ho Chi Minh City People’s Committee has projected financial support for these individuals at about VND1.57 billion ($61,519) in early retirement benefits under the government’s decree.

Additional support outlined by the Ho Chi Minh City People’s Council resolution is estimated at VND1.1 billion ($43,102) per person.

As a result, each affected individual is expected to receive a total severance of approximately VND2.68 billion.

The total funding required to support all 6,291 individuals is some VND16.79 trillion ($657.9 million), with the city’s budget covering VND6.88 trillion ($269.6 million).

Furthermore, 418 individuals responsible for Party work at state-owned corporations will be let go and provided with a combined VND186 billion ($7.3 million) in financial support.

Funding set aside for 450 individuals who do not meet the age requirements for re-election or reappointment is estimated at VND37 billion ($1.4 million).

In total, the estimated budget to support all 7,159 affected individuals is around VND17 trillion ($665.8 million), with the majority of the funds coming from the city budget.

Party, state, and Vietnam Fatherland Front agencies, socio-political organizations, and associations assigned by the Party and state will have funds sourced from the state budget, according to the municipal administration.

Self-financing units, state-owned corporations, and enterprises where the state holds 100 percent of the charter capital will bear the costs, using their operational revenues and other legal sources.

If the financial capabilities of these units are insufficient, the city will provide partial assistance.

By Thanh Ha & Thao Le – Tuoi Tre News – February 20, 2025