Decree No. 307/2025/NĐ-CP on Classification of Administrative Units

DECREE
Classification of Administrative Units

Pursuant to the Law on Government Organization No. 63/2025/QH15;

Pursuant to the Law on Local Administration Organization No. 72/2025/QH15;

||| Based on the proposal of the Minister of Home Affairs;

The Government issues the Decree on the classification of administrative units.

 PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Decree stipulates the criteria for classifying administrative units, the method of calculating points for the classification of administrative units, and the authority, procedures, and formalities for classifying administrative units.

Article 2. Types of Administrative Units

1. Hanoi City and Ho Chi Minh City are special-class provincial-level administrative units; the remaining centrally governed cities are Class I provincial-level administrative units.

2. Provinces are classified into three types: Type I, Type II, and Type III.

3. Communes are classified into three types: Type I, Type II, and Type III.

4. Wards and special economic zones are classified into four types: Special Type, Type I, Type II, and Type III.

Article 3. Purpose of Classifying Administrative Units

Classifying administrative units aims to evaluate the scale and level of development of administrative units; the degree to which local government organizations meet the needs within the administrative unit's territory, serving as a basis for formulating policies for economic and social development, building organizational structures, determining staffing levels, and establishing systems and policies for local government officials appropriate to each type of administrative unit.

Article 4. Framework for Points in Classifying Administrative Units

1. The classification of administrative units is carried out through a point calculation method. The classification points of an administrative unit are the total points achieved from the classification criteria, up to a maximum of 100 points, plus bonus points (if applicable). Each criterion’s points are rounded to two decimal places.

2. The classification criteria include:

a) Population size criteria;

b) Natural area criteria;

c) Economic and social development conditions criteria;

d) Specific criteria.

3. In cases where a criterion achieves a level that qualifies for additional points, the additional points are calculated as a percentage of the difference between the achieved level and the threshold for additional points for that criterion.

4. A ward or special economic zone is classified as a special type when it achieves a total score of 90 points or more (excluding bonus points specified in Article 9 of this Decree), has a large population and natural area, and meets the priority criteria set forth in point a or point d, Clause 3, Article 9 of this Decree.

5. An administrative unit is classified as Type I when it achieves a total score of 75 points or more, except in the case specified in Clause 4 of this Article.

6. An administrative unit is classified as Type II when it achieves a total score of 60 points to less than 75 points.

7. An administrative unit achieving less than 60 points is classified as Type III.

Chapter II

CRITERIA FOR CLASSIFICATION AND POINT CALCULATION

CLASSIFICATION OF ADMINISTRATIVE UNITS

Article 5. Criteria for Classification and Point Calculation for Provincial-Level Administrative Units

1. Population Size:

a) A province with a population of 2,000,000 people or fewer receives 10 points; for every additional 60,000 people above 2,000,000, an additional 0.5 points are awarded, but not exceeding 25 points;

b) Mountainous provinces apply 75% of the provisions set forth in point a of this clause.

2. Natural Area:² An area of 8,000 km² or less receives 10 points; for every additional 200 km² above 8,000 km

 , an additional 0.5 points are awarded, but not exceeding 25 points.

3. Conditions for Economic and Social Development:

a) A ratio of revenue redistribution to the central budget of 10% or less receives 8 points; for every additional 1% above 10%, an additional 0.25 points are awarded, but not exceeding 10 points.

If there is no ratio of revenue redistribution to the central budget, if the share of local budget revenue from the decentralized budget compared to the total local budget expenditure is 50% or less, 3 points are awarded; for every additional 5% above 50%, an additional 0.5 points are awarded, but not exceeding 8 points.

b) The proportion of industry, construction, and services in the economic structure of 70% or less receives 1 point; for every additional 5% above 70%, an additional 0.5 points are awarded, but not exceeding 3 points;

c) An economic growth rate of 7% or less receives 1 point; for every additional 0.5% above 7%, an additional 0.25 points are awarded, but not exceeding 3 points;

d) A non-agricultural labor force ratio of 60% or less receives 1 point; for every additional 5% above 60%, an additional 0.5 points are awarded, but not exceeding 3 points;

e) Per capita income at or below the national average receives 2 points; for every additional 5% above the national average, an additional 0.25 points are awarded, but not exceeding 3 points;

g) A labor force participation rate in social insurance from the age group at or below the national average receives 2 points; for every additional 5% above the national average, an additional 0.5 points are awarded, but not exceeding 3 points;

h) A poverty rate according to multi-dimensional poverty standards at or above the national average receives 2 points; for every reduction of 0.5% below the national average, an additional 0.25 points are awarded, but not exceeding 3 points;

i) A clean water usage rate among the population meeting the provincial standard at or above the national average receives 2 points; for every additional 1% above the national average, an additional 0.5 points are awarded, but not exceeding 3 points;

k) Having a Citizen Satisfaction Index for provincial-level state agencies in the top 10 provinces and centrally governed cities in the country announced by the Ministry of Home Affairs for the year immediately preceding the reporting year receives 3 points; being in the next 10 provinces and centrally governed cities receives 2 points; all other provinces receive 1 point.

l) An online public service completion rate from the national average or lower receives 2 points; for every additional 2% above the national average, an additional 0.25 points are awarded, but not exceeding 3 points.

4. Specific Factors:

a) A population of 20% to 30% ethnic minorities receives 1 point; for every additional 5% above 30%, an additional 0.25 points are awarded, but not exceeding 2 points;

b) A commune-level administrative unit directly under the province with a national border land area of 10% to 20% receives 1 point; for every additional 10% above 20%, an additional 0.5 points are awarded, but not exceeding 2 points.

c) Having a national special relic or a heritage recognized by UNESCO shall be counted as 1 point.

d) Having from 80 administrative units at the commune level or less shall be counted as 2 points; for more than 80 administrative units at the commune level, each additional 5 units shall be counted as an additional 0.25 points, but not exceeding 5 points in total.

Article 6. Criteria for classification and method of calculating points for classification of administrative units at the commune level

1. Population Size:

a) Communes with a population of up to 16,000 people shall be counted as 10 points; for every additional 1,000 people over 16,000, an additional 0.5 points shall be counted, but not exceeding 25 points in total.

b) Mountainous communes shall apply a rate of 75% of the provisions set out in point a of this clause.

2. Natural area of up to 30 km² shall be counted as 10 points; for every additional 5 km² over 30 km², an additional 0.25 points shall be counted, but not exceeding 25 points in total.²from 10 kilometers down is counted as 10 points; over 30 kilometers²then each additional 5 kilometers² above 8,000 km

 , an additional 0.5 points are awarded, but not exceeding 25 points.

a) Being able to balance local budget revenue and expenditure shall be counted as 10 points.

In cases where local budget revenue and expenditure cannot be balanced, if the proportion of local budget revenue received according to the tiered system compared to the total balanced local budget expenditure is up to 40%, it shall be counted as 3 points; for every additional 5% over 40%, an additional 0.5 points shall be counted, but not exceeding 8 points in total.

b) The proportion of industry, construction, and services in the economic structure up to 50% shall be counted as 3 points; for every additional 5% over 50%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

c) The ratio of non-agricultural labor force up to 50% shall be counted as 3 points; for every additional 5% over 50%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

d) The poverty rate according to the multidimensional poverty standard of 4.5% or higher shall be counted as 3 points; for every reduction of 1% below 4.5%, an additional 1 point shall be counted, but not exceeding 5 points in total.

đ) The percentage of the population using clean water meeting the standards on the commune's territory up to 70% shall be counted as 3 points; for every additional 5% over 70%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

e) The ratio of administrative procedure files processed through online public service delivery systems above the average level of the province or city shall be counted as 3 points; for every additional 0.5% above the average level of the province or city, an additional 0.25 points shall be counted, but not exceeding 5 points in total.

g) The ratio of outgoing documents signed digitally by agencies and their leaders and sent via the internet above 70% of the total outgoing documents of the People's Committee at the commune level shall be counted as 3 points; for every additional 5% above 70%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

4. Specific Factors:

a) Having a population of 20% to 30% ethnic minorities shall be counted as 2 points; for every additional 5% over 30%, an additional 0.25 points shall be counted, but not exceeding 3 points in total.

b) Having a land border with another country shall be counted as 3 points.

c) Having a national special relic or a heritage recognized by UNESCO shall be counted as 2 points.

d) Safe zone communes shall be counted as 2 points.

Article 7. Criteria for classification and method of calculating points for classification of administrative units at the ward level

1. Population size

a) Wards under centrally-administered cities with a population of up to 21,000 people shall be counted as 10 points; for every additional 1,000 people over 21,000, an additional 0.5 points shall be counted, but not exceeding 25 points in total.

b) Wards under provinces with a population of up to 14,000 people shall be counted as 10 points; for every additional 1,000 people over 14,000, an additional 0.5 points shall be counted, but not exceeding 25 points in total.

2. Natural area of up to 5.5 km² shall be counted as 10 points; for every additional 1 km² over 5.5 km², an additional 0.25 points shall be counted, but not exceeding 25 points in total.²from 5.5 kilometers down is counted as 10 points; over²then each additional 1 kilometer² above 8,000 km

 , an additional 0.5 points are awarded, but not exceeding 25 points.

a) Being able to balance local budget revenue and expenditure shall be counted as 10 points.

In cases where local budget revenue and expenditure cannot be balanced, if the proportion of local budget revenue received according to the tiered system compared to the total balanced local budget expenditure is up to 50%, it shall be counted as 3 points; for every additional 5% over 50%, an additional 0.5 points shall be counted, but not exceeding 8 points in total.

b) The proportion of industry, construction, and services in the economic structure up to 70% shall be counted as 3 points; for every additional 2% over 70%, an additional 0.25 points shall be counted, but not exceeding 5 points in total.

c) The ratio of non-agricultural labor force up to 60% shall be counted as 3 points; for every additional 5% over 60%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

d) The percentage of the urban population supplied with clean water through centralized water supply systems up to 70% shall be counted as 3 points; for every additional 5% over 70%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

đ) The poverty rate according to the multidimensional poverty standard of 4% or higher shall be counted as 3 points; for every reduction of 0.5% below 4%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

e) The ratio of administrative procedure files processed through online public service delivery systems above the average level of the province or city shall be counted as 3 points; for every additional 0.5% above the average level of the province or city, an additional 0.25 points shall be counted, but not exceeding 5 points in total.

g) The ratio of outgoing documents signed digitally by agencies and their leaders and sent via the internet above 80% of the total outgoing documents of the People's Committee at the commune level shall be counted as 3 points; for every additional 5% above 80%, an additional 0.5 points shall be counted, but not exceeding 5 points in total.

4. Special factors

a) The converted floating population accounting for 10% to 20% of the resident population shall be counted as 2 points; for every additional 5% over 20%, an additional 0.25 points shall be counted, but not exceeding 3 points in total.

b) Wards located in mountainous areas shall be counted as 3 points.

c) Having a national special relic or a heritage recognized by UNESCO shall be counted as 2 points.

d) Safe zone wards shall be counted as 2 points.

Article 8. Criteria for classification and method of calculating points for administrative units in special economic zones

1. The criteria for population size, natural area, and socio-economic development conditions of special economic zones shall be implemented according to those of communes as stipulated in Clauses 1, 2, and 3 of Article 6 of this Decree, except in cases provided for in Clause 3 of this Article. In cases where special economic zones are recognized as urban areas under the provisions of the law, the criteria for natural area, population size, and socio-economic development conditions of special economic zones shall be implemented according to those of wards as stipulated in Clauses 1, 2, and 3 of Article 7 of this Decree.

2. The criterion for special characteristics of special economic zones shall be calculated at 10 points.

3. A special economic zone with a resident population of less than 1,000 people is an administrative unit of commune level type III.

Article 9. Priority Points in Classification of Administrative Units

1. An administrative unit whose population size reaches 300% or more of the standard set forth in the Resolution of the Standing Committee of the National Assembly on the standards of administrative units shall be awarded 5 points; for every additional 50% above 300%, an additional 0.5 point shall be awarded, but not exceeding a maximum of 10 points.

2. Regarding natural area:

a) Provinces and communes with a natural area reaching 300% or more of the standard set forth in the Resolution of the Standing Committee of the National Assembly on the standards of administrative units shall be awarded 10 points.

b) Wards with a natural area of 42 km² or more shall be awarded 10 points.²up is added 10 points.

3. Regarding location and role:

a) Provincial and commune-level administrative units with a strategic location of particular importance in terms of socio-economic development, national defense, security, protection of national sovereignty over seas and islands, and international tourist centers shall be awarded 10 points;

b) Commune-level administrative units identified as centers for economy, culture, education, training, healthcare, transportation hubs, playing a role in promoting socio-economic development of clusters of communes and wards shall be awarded 3 points;

c) Commune-level administrative units identified as provincial-level specialized centers for economy, finance, culture, education, training, healthcare, tourism, science and technology, transportation hubs, playing a role in promoting provincial socio-economic development shall be awarded 5 points;

d) Commune-level administrative units identified as provincial-level comprehensive centers for economy, finance, culture, education, training, healthcare, tourism, science and technology, transportation hubs, playing a role in promoting provincial socio-economic development shall be awarded 10 points.

4. An administrative unit having multiple priority factors as prescribed in Clauses 1, 2, and 3 of this Article shall only apply the highest priority criterion.

Chapter III

AUTHORITY AND PROCEDURES FOR CLASSIFICATION OF ADMINISTRATIVE UNITS

Article 10. Authority to Decide on Classification of Administrative Units

1. The Minister of Home Affairs decides on recognizing the classification of provincial-level administrative units and wards, and special economic zones of special type.

2. The Chairman of the People's Committee of the province decides on the classification of commune-level administrative units, except in cases provided for in Clause 1 of this Article.

Article 11. Preparation of Proposal Files for Classification of Administrative Units

1. The proposal file for classification of administrative units includes:

a) Memorandum;

b) The proposal for classification of administrative units including necessity and legal basis; an overview of the historical formation and development process of the administrative unit; an explanation and evaluation of the current status of the administrative unit according to the classification criteria; plans to improve the classification criteria in subsequent stages; conclusions and recommendations.

c) A statistical table of data serving as the basis for determining the classification points of administrative units;

d) Documents from competent authorities deciding or confirming the data of the classification criteria, confirming special characteristics.

2. The data for evaluating the classification criteria of administrative units is based on the data up to December 31 of the preceding year relative to the year when the file is submitted to the reviewing authority.

Population data is determined based on the resident population and temporary residents and provided and confirmed by the competent police authority.

Natural area data is determined based on the data published by the Government in 2025 or determined in resolutions on the reorganization, establishment, merger, division, and adjustment of administrative boundaries that have been issued.

Other data is provided by the entity preparing the proposal and is responsible for its accuracy, ensuring consistency with statistical databases and related national and specialized databases.

The methods for collecting and calculating data for each classification criterion of administrative units are specified in the Appendix attached to this Decree.

Article 12. Procedures and formalities for classifying provincial administrative units and wards, special economic zones

1. The Provincial People's Committee directs the Department of Home Affairs to prepare the dossier of the Plan for classifying provincial administrative units. In cases of classifying wards and special economic zones, the Provincial People's Committee directs the Ward People's Committees and Special Economic Zones to prepare the dossier of the Plan to be submitted to the Department of Home Affairs for review and completion, then report to the Provincial People's Committee for consideration.

2. The Provincial People's Committee sends the dossier of the Plan for classifying provincial administrative units and wards, special economic zones to the Ministry of Home Affairs.

3. Within thirty days from the date of receipt of the dossier of the Plan for classifying administrative units sent by the Provincial People's Committee, the Ministry of Home Affairs shall take the lead and coordinate with relevant central agencies to organize the examination of the classification dossier; decide on organizing surveys to serve the examination of the classification dossier.

4. The Minister of Home Affairs shall examine and decide on the classification of provincial administrative units and wards, special economic zones within fifteen days from the date of receiving the examination results.

Article 13. Procedures and formalities for classifying commune-level administrative units of Class I, II, and III

1. The Commune People's Committee directs specialized agencies to prepare the dossier for classifying the administrative unit at their level.

2. Within thirty days from the date of receipt of the dossier for classifying commune-level administrative units sent by the Commune People's Committee, the Department of Home Affairs shall organize the examination of the classification dossier; decide on organizing surveys to serve the examination of the classification dossier.

3. The Department of Home Affairs shall submit to the Chairman of the Provincial People's Committee for consideration and decision on the classification of commune-level administrative units within fifteen days from the date of receiving the examination results.

4. The Chairman of the Provincial People's Committee shall consider and decide on the classification of commune-level administrative units within fifteen days from the date of receipt of the dossier submitted by the Department of Home Affairs.

Article 14. Preparing and examining reports on reviewing criteria for reclassifying administrative units

1. Every five years from the date of recognizing the classification of administrative units, the Provincial People's Committee shall prepare a report on reviewing criteria for reclassifying provincial administrative units, and the Commune People's Committee shall prepare a report on reviewing criteria for reclassifying commune-level administrative units to be submitted to the competent authority for recognizing the classification of administrative units as stipulated in Article 10 of this Decree.

2. The contents of the report on reviewing criteria for reclassifying administrative units include:

a) An overview of the current development status of the administrative unit; changes in classification criteria and standards at the time of reporting compared to the recognized classification results or compared to the review results of the previous period; recommendations and proposals regarding maintaining or changing the classification of the administrative unit;

b) Appendices accompanying the report on reviewing include legal documents; tables comparing classification criteria at the time of preparing the report with the time of recognizing the classification or with the review results of the previous period.

3. Responsibilities for examining reports are as follows:

a) The Ministry of Home Affairs shall take the lead in organizing surveys and examining the results of reviewing criteria for reclassifying provincial administrative units and wards, special economic zones.

b) The Department of Home Affairs shall take the lead in organizing surveys and examining the results of reviewing criteria for reclassifying commune-level administrative units, except for wards and special economic zones.

4. The authority to recognize reclassification of administrative units shall be carried out as stipulated for the initial classification of administrative units in Article 10 of this Decree.

5. The Provincial People's Committee shall report the results of classifying commune-level administrative units within its jurisdiction and prepare plans for classifying provincial and commune-level administrative units under its management for the following year, to be submitted to the Ministry of Home Affairs before October 30 each year for consolidation, monitoring, and inspection of implementation.

Chapter IV

IMPLEMENTING PROVISIONS

Article 15. Transitional Provisions

1. Administrative units formed based on the rearrangement of administrative units in 2025 must be classified according to the provisions of this Decree before June 30, 2026; during the period when classification has not been implemented, the classification of the administrative unit after rearrangement shall be implemented according to the provisions of Clause 3 of this Article.

2. Administrative units that have been classified before the effective date of this Decree and did not undergo rearrangement in 2025 must be reclassified according to the provisions of this Decree before April 30, 2026; during the period when classification has not been implemented, they shall maintain their original classification before the effective date of this Decree.

3. In cases where administrative units are established, merged, divided, or have their boundaries adjusted from the effective date of this Decree, within one year from the date the National Assembly's resolution or the Standing Committee of the National Assembly's resolution on establishment, merger, division, or adjustment of administrative boundaries becomes effective, the administrative units must be classified. During the period when classification has not been implemented, the administrative unit after division shall be classified as Class III; the administrative unit after merger or newly established based on the adjustment of multiple administrative boundaries shall be determined according to the highest classification of the administrative unit before merger or boundary adjustment; the administrative unit after boundary adjustment or newly established based on the original state of one administrative unit at the same level shall be determined according to the classification of the administrative unit before boundary adjustment or establishment.

4. In cases where there are significant changes in factors related to determining the classification criteria of administrative units necessitating reclassification, such reclassification shall be conducted according to the provisions of this Decree.

Article 16. Effective Date

This Decree takes effect from November 27, 2025.

Article 17. Responsibility for Implementation

1. The Minister of Home Affairs shall inspect the implementation of the provisions of this Decree.

2. The Ministers, Heads of Ministries equivalent to ministries, Heads of government agencies, Chairmen of People's Committees at all levels, and organizations and individuals concerned shall be responsible for implementing this Decree.