New regulations on the classification of administrative units.

According to the new regulations, Hanoi and Ho Chi Minh City are special-category provincial-level administrative units; the remaining centrally-governed cities are category I provincial-level administrative units.

Provinces are classified into three categories: Category I, Category II, and Category III. Communes are classified into three categories: Category I, Category II, and Category III. Wards and special zones are classified into four categories: special category, Category I, Category II, and Category III.

4 criteria for classifying administrative units

The decree stipulates that the classification of administrative units is carried out using a scoring method with a maximum of 100 points. The criteria for classifying administrative units include: population size; natural area; socio-economic development conditions; and specific characteristics.

Wards and special zones are classified as special zones when they achieve a total score of 90 points or more (excluding priority points), have a large population and natural area, and meet the priority criteria as stipulated.

Administrative units are classified as Category I when they achieve a total score of 75 points or more, except for wards and special zones that are classified as special categories.

An administrative unit is classified as Category II when its total score is between 60 and less than 75 points.

Administrative units that score below 60 points are classified as Category III.

How to calculate the ranking points for administrative units

The decree clearly specifies the criteria for classifying and the method for calculating classification points for administrative units at the provincial, commune, ward, and special zone levels.

Specifically, provinces with a population of 2 million or less are awarded 10 points; for provinces with a population exceeding 2 million, an additional 0.5 points are awarded for every 60,000 people, but the maximum is 25 points. Mountainous provinces apply 75% of the prescribed rate.

Natural land area of ​​8,000 km2 or less is awarded 10 points; for areas exceeding 8,000 km2, an additional 0.5 points are awarded for every 200 km2, but the maximum score is 25 points.

Regarding socio-economic development conditions, localities with a revenue sharing ratio to the central budget of 10% or less are awarded 8 points; for ratios above 10%, an additional 0.25 points are awarded for every additional 1%, but the maximum is not more than 10 points.

In cases where a locality does not have a revenue sharing ratio with the central budget, if the local budget revenue received according to the decentralization scheme is 50% or less of the total balanced local budget expenditure, it will be awarded 3 points; if it is over 50%, an additional 0.5 points will be awarded for every 5% increase, but the maximum is not more than 8 points.

Regarding the proportion of industry, construction, and services in the economic structure, a figure of 70% or less is awarded 1 point; for every additional 5% above 70%, an additional 0.5 points are awarded, but the maximum is 3 points.

Regarding economic growth rates, a rate of 7% or below is worth 1 point; for rates above 7%, an additional 0.25 points are awarded for every 0.5% increase, but the maximum is 3 points.

Regarding the non-agricultural labor ratio, a ratio of 60% or less is worth 1 point; for ratios above 60%, an additional 0.5 points are awarded for every 5% increase, but the maximum is 3 points.

Regarding the average labor productivity growth rate of the province, a rate of 5% or less is awarded 1 point; for every additional 0.5% above 5%, an additional 0.5 points are awarded, but the maximum is 3 points.

Regarding per capita income, incomes below or below the national average are awarded 2 points; for every additional 5% above the national average, an extra 0.25 points are awarded, but the maximum is 3 points.

Regarding the percentage of the working-age labor force participating in social insurance, a percentage below the national average is awarded 2 points; for every additional 5% above the national average, an additional 0.5 points are awarded, but the maximum is 3 points.

Regarding the poverty rate according to the multidimensional poverty standard, a rate above the national average is worth 2 points; for every 0.5% reduction below the national average, an additional 0.25 points are awarded, but not exceeding 3 points.

Regarding the percentage of the population using clean water that meets standards in the province, if it is at or above the national average, 2 points will be awarded; for every additional 1% above the national average, an additional 0.5 points will be awarded, but the maximum is 3 points.

Localities with the highest citizen satisfaction index regarding the services of provincial-level state agencies in the year preceding the reporting year, as listed in the top 10 provinces and centrally-administered cities nationwide by the Ministry of Interior, are awarded 3 points; those in the next 10 provinces and cities are awarded 2 points; and all other provinces are awarded 1 point.

Localities with a percentage of administrative procedures processed through online public services at or below the national average will receive 2 points; for every additional 2% above the national average, an additional 0.25 points will be awarded, but not exceeding 3 points.

The decree also outlines specific factors: localities with 20-30% of their population belonging to ethnic minorities receive 1 point; for every additional 5% above 30%, an extra 0.25 points are awarded, but not exceeding 2 points. Localities with 10-20% of their commune-level administrative units sharing a national land border receive 1 point; for every additional 10% above 20%, an extra 0.5 points are awarded, but not exceeding 2 points.

Localities with special national monuments or UNESCO-recognized heritage sites are awarded 1 point.

Localities with 80 or fewer commune-level administrative units are awarded 2 points; for every additional 5 commune-level administrative units exceeding 80, an additional 0.25 points are awarded, but the maximum is 5 points.