Bigger Provinces, Hidden Gaps: A View of Viet Nam’s 63-to-34 Reform beyond the Averages

Hai-Anh Dang (), Minh Do () and Duy-Anh Le ()
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Minh Do: University of Economics and Business, Vietnam National University, Hanoi
Duy-Anh Le: Department of Economics, College of Arts and Sciences, VinUniversity, Viet Nam

No 18920, IZA Discussion Papers from IZA Network @ LISER

Abstract: Viet Nam’s timely reduction of 63 province-level units to 34 renders its number of provinces typical of countries of its size. International evidence, however, shows that savings and development gains are neither automatic nor evenly shared. Reclassifying 2002–2020 household data onto the new map leaves national measures of poverty and inequality unchanged but moves part of measured inequality from between provinces to within them. Administrative poverty rates also reveal large differences among areas now sharing one provincial budget. This essay offers tentative policy suggestions such as keeping poorer places visible, allocating resources according to need, protecting access to benefits and public services, and connecting lagging areas to jobs and markets.

Keywords: administrative consolidation; provincial mergers; decentralization; poverty; inequality; social protection; modifiable areal unit problem; Viet Nam (search for similar items in EconPapers)
JEL-codes: D6 H1 I3 O1 R5 (search for similar items in EconPapers)
Date: 2026-09
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