THE GOVERNMENT -------	SOCIALIST REPUBLIC OF VIET NAM Independence - Freedom - Happiness ----------
No: 15/2007/ND-CP	Hanoi, January 26, 2007

DECREE

ON THE CLASSIFICATION OF PROVINCIAL- OR DISTRICT-LEVEL ADMINISTRATIVE UNITS

THE GOVERNMENT

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 26, 2003 Law on Organization of the People's Councils and People's Committees;

At the proposal of the Minister of Home Affairs,

DECREES:

Chapter I

GENERAL PROVISIONS

Article 1.- Subjects and scope of regulation

This Decree provides for purposes, principles, categories, criteria, grading modes and methods; order, procedures and competence for, and the handling of, violations in, the classification of administrative units of provinces and centrally run cities (below collectively referred to as provincial-level administrative units) and administrative units of rural districts, urban districts, provincial towns and cities (below referred to as district-level administrative units).

Article 2.- Classification purposes

1. To ensure the stability of provincial- and district-level administrative units and raise the effectiveness and efficiency of state administrative management in localities.

2. To create grounds for the formulation of socio-economic development policies, the organization of apparatuses of People's Councils, People's Committees, and specialized units under provincial- or district-level People's Committees.

3. To create grounds for the formulation of regulations and policies applicable to cadres and civil servants which are suitable to each grade of administrative units.

Article 3.- Classification principles

1. Classification of provincial- or district-level administrative units is based on the criteria of population, area, geographical particularities, number of administrative units, natural and socio-economic conditions which reflect the workload and the difficulty and complexity of state administrative management activities at provincial- and district-level administrative units.

2. Grading methods for criteria-based classification must ensure objectivity and scientism.

Chapter II

GRADES, CRITERIA, METHODS, COMPETENCE, ORDER AND PROCEDURES FOR THE CLASSIFICATION OF PROVINCIAL- AND DISTRICT-LEVEL ADMINISTRATIVE UNITS

Article 4.- Grades of administrative units

1. Provinces and centrally run cities are classified into four grades: special grade, grade I, grade II and grade III.

2. District-level administrative units are classified into three grades: grade I, grade II and grade III.

Article 5.- Recognition of administrative units of special grade or grade I without criteria-based grading

1. To recognize Hanoi capital and Ho Chi Minh City as provincial-level administrative units of special grade

a/ Hanoi capital is a political, economic, cultural, social, scientific, technical, trade and service center and a domestic and international communications and exchange hub, which plays the role of promoting national socio-economic development and occupies a strategic security and defense position; has a large population and high population density; has difficulties and complexities in state urban management, and attains a high annual budget revenue-expenditure balance, and is an urban center of special grade;

b/ Ho Chi Minh City is a political, economic, cultural, social, scientific, technical, training, tourist and service center and a domestic and international communications and exchange hub, which plays the role of promoting regional and national socio-economic development; occupies a strategic security and defense position in the region; has the largest population and highest population density; has difficulties and complexities in state urban management, and attains a high annual budget revenue-expenditure balance, and is an urban center of special grade.

2. To recognize centrally run cities (except Hanoi capital and Ho Chi Minh City) as provincial-level administrative units of grade I

Centrally run cities (except Hanoi capital and Ho Chi Minh City) are economic, cultural, social, scientific, technical, tourist and service centers as well as domestic and international communications and exchange hubs; occupy strategic defense and security positions in an area or region; and have the role of promoting socio-economic development of an inter-provincial territorial area or a region;

3. To recognize provincial cities and Hanoi capital's and Ho Chi Minh City's districts as district-level administrative units of grade I

a/ Provincial cities are political, socio-economic or economic, cultural, social, scientific, technical, tourist and service centers; are communications hubs of provinces as well as domestic and international exchange hubs; and have the role of promoting inter-district, inter-provincial and regional socio-economic development;

b/ Urban districts of Hanoi capital and Ho Chi Minh City have a large population and high population density; have complexities and difficulties in state urban management; and attain a high annual budget revenue-expenditure balance, and are district-level administrative units classified as urban centers of special grade.

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