THE GOVERNMENT

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.

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.

Article 6.- Grading criteria for classification

Classification of provincial- or district-level administrative units is based on the following criteria:

1. Population;

2. Land area;

3. Particularities.

Article 7.- Criteria-based grading method for the classification of provincial-level administrative units

1. In terms of region-based population

a/ For mountainous and highland provinces: A province with less than 400,000 inhabitants shall be given 50 points; if having 400,000 inhabitants or more, it shall be given one more point for every additional 6,000 inhabitants to a maximum of 250 points;

b/ For delta provinces: A province with less than 700,000 inhabitants shall be given 50 points; if having 700,000 inhabitants or more, it shall be given one more point for every additional 9,000 inhabitants to a maximum of 250 points.

2. In terms of region-based land area

a/ For mountainous and highland provinces: A province with less than 400,000 ha of natural land shall be given 40 points; if having 400,000 ha or more, it shall be given one more point for every additional 8,000 ha to a maximum of 150 points;

b/ For delta provinces: A province with less than 90,000 ha of natural land shall be given 40 points; if having 90,000 ha or more, it shall be given one more point for every additional 6,000 ha to a maximum of 150 points.

3. In terms of particularities

a/ A delta province having district-level administrative units in mountainous or highland areas shall be given one point for each of such units to a maximum of 10 points;

b/ A mountainous province shall be given 15 points; if having district-level administrative units in highland areas, it shall be given one point for each of such units;

c/ A highland province shall be given 25 points;

d/ A province in national border region shall be given 20 points;

e/ A province with more than 11 district-level administrative units shall be given one more point for each additional district-level administrative unit in excess of 11 to a maximum of 15 points;

f/ A province where ethnic minority inhabitants represent between 30% and 50% of its population shall be given 5 points, or 10 points if ethnic minority inhabitants represent 50% of its population;

g/ A province where the budget revenue-expenditure balance (an average of the latest three years before the classification) reaches 100% (revenues are enough to offset expenses) shall be given 5 points; if that balance exceeds 100% (revenues are higher than expenses), it shall be given one more point for every additional 10% to a maximum of 40 points.

Article 8.- Criteria-based grading method for the classification of district-level administrative units

1. In terms of region-based population

a/ For mountainous, highland and island districts: A district with less than 40,000 inhabitants shall be given 50 points; if having 40,000 inhabitants or more, it shall be given one more point for every additional 600 inhabitants to a maximum of 250 points;

b/ For delta districts: A district with less than 50,000 inhabitants shall be given 50 points; if having 50,000 inhabitants or more, it shall be given one more point for every additional 700 inhabitants to a maximum of 250 points.

c/ For urban districts (except for those defined in Clause 3 of Article 5) and provincial towns:

- An urban district or a delta town with less than 80,000 inhabitants shall be given 50 points; if having 80,000 inhabitants or more, it shall be given one more point for every additional 800 inhabitants, to a maximum of 250 points;

- A mountainous, highland or border town with less than 60,000 inhabitants shall be given 50 points; if having 60,000 inhabitants or more, it shall be given one more point for every additional 700 inhabitants, to a maximum of 250 points;

2. In terms of region-based natural land area

a/ For mountainous, highland and island districts: A district with less than 20,000 ha of natural land shall be given 40 points; if having 20,000 ha or more, it shall be given one more point for every additional 1,000 ha to a maximum of 150 points;

b/ For delta districts: A district with less than 10,000 ha of natural land shall be given 40 points; if having 10,000 ha or more, it shall be given one more point for every additional 600 ha to a maximum of 150 points;

c/ For urban districts (except those defined in Clause 3 of Article 5) and towns

- An urban district with less than 1,000 ha of natural land shall be given 40 points; if having 1,000 ha or more, it shall be given one more point for every additional 100 ha to a maximum of 150 points;

- A delta provincial town with less than 3,000 ha of natural land shall be given 40 points; if having 3,000 ha or more, it shall be given one more point for every additional 150 ha to a maximum of 150 points;

- A mountainous, highland or border town with less than 4,000 ha of natural land shall be given 40 points; if having 4,000 ha or more, it shall be given one more point for every additional 200 ha to a maximum of 150 points.

3. In terms of particularities

a/ For a district-level administrative unit in a delta region with administrative units being communes, wards and townships (below called commune-level administrative units for short) located in mountainous, highland, deep-lying or remote areas, it shall be given one point for each of those commune-level administrative units to a maximum of 10 points;

b/ A district-level administrative unit in a mountainous region shall be given 15 points. For a district-level administrative unit in a mountainous region, which has commune-level administrative units located in highland areas, it shall be given one point for each of those commune-level administrative units;

c/ A district-level administrative unit in a highland region shall be given 25 points;

d/ A district-level administrative unit in the national border or island region shall be given 20 points;

e/ A district-level administrative unit with more than 17 commune-level administrative units shall be given one more point for each additional commune-level administrative unit in excess of 17 to a maximum of 20 points;

f/ An urban district or town with a population density of 120 inhabitants/ha shall be given 5 points; if having a population density of over 120 inhabitants /ha, it shall be given one more point for every additional 10 people, to a maximum of 20 points;

g/ A town which is the center of a province or centrally run city shall be given 15 points;

h/ A district-level administrative unit with international border gates shall be given 10 points for each international border gate; if having national border gates, it shall be given 5 points for each national border gate;

i/ A district-level administrative unit where the collected average annual budget revenue amount (an average of three years before the latest budget year) reach 100% of the planned target shall be given 5 points; for every additional 5%, it shall be given one more point to a maximum of 20 points.

j/ A district-level administrative unit where ethnic minority inhabitants represent between 30% and 50% of its population shall be given 5 points, or 10 points if ethnic minority inhabitants represent over 50% of its population;

Article 9.- Point scale for the classification of provincial- and district-level administrative units

1. The number of points given for each criterion is provided for in Articles 7 and 8 of this Decree.

2. The total aggregate number of points of criteria for each administrative unit shall serve as a basis.

3. The classification of provincial- or district-level administrative units is based on the following point scale:

a/ Provincial- or district-level administrative units of grade I are those which attain at least 341 points;

b/ Provincial- or district-level administrative units of grade II are those which attain between 201 and 340 points;

c/ Provincial- or district-level administrative units of grade III are those which attain 200 points or less.

Article 10.- Order, procedures, time and competence for deciding on classification

1. For provincial-level administrative units

a/ Provincial-level People's Committees shall compile dossiers, each comprising an extract of the map of administrative boundaries; statistical reports on population, land area and documents on particularities, which shall be approved by People's Councils of the same level and reported to the Ministry of Home Affairs for evaluation;

b/ The Ministry of Home Affairs shall evaluate the tentative classification dossiers made by the provincial-level People's Committees, report evaluation results to the Prime Minister for consideration and decision;

c/ Based on the dossiers and expositions of the provincial-level People's Committees and the reports on the evaluation results of the Ministry of Home Affairs, the Prime Minister shall decide on the classification of provincial-level administrative units.

2. For district-level administrative units

a/ District-level People's Committees shall compile dossiers, each comprising an extract of the map of administrative boundaries; statistical reports on population and land area and documents on particularities, which shall be approved by People's Councils of the same level and reported to the provincial-level People's Committees for evaluation;

b/ Provincial-level People's Committees shall evaluate the tentative classification dossiers made by district-level People's Committees, report the evaluation results to the Minister of Home Affairs for consideration and decision;

c/ Based on the provincial-level People's Committees' dossiers and expositions, the Minister of Home Affairs shall decide on the classification of district -level administrative units.

3. On the time for compilation and evaluation of dossiers and submission, signing of classification decisions

a/ The time limit for compilation of dossiers is 30 days after the procedures for classification dossiers are carried out. After compiling dossiers, provincial- or district-level People's Committees shall report to People's Councils of the same level for approval at the nearest meeting;

b/ The time limit for evaluation of classification dossiers is 30 days for district-level classification dossiers and 40 days for provincial-level classification dossiers, counting from the date the evaluation agency receives the dossiers from district- or provincial-level People's Committees;

c/ The time limit for submission and issuance of a decision on the classification of provincial- or district-level administrative units is 20 days from the date the Ministry of Home Affairs reports and submits to the Prime Minister a provincial-level classification dossier and the provincial-level People's Committee reports and submits a district-level classification dossier to the Minister of Home Affairs.

Article 11.- Adjustment of classification of the provincial- and district-level administrative units

1. Five years after a decision on the classification of provincial- or district-level administrative unit takes effect, the provincial- or district-level People's Committee shall request competent agencies to consider and decide on the adjustment of the classification of the administrative unit.

2. When an administrative unit sees changes in its population, area or particularities and meet all conditions for classification, the Prime Minister shall decide to adjust its classification if it is a provincial-level administrative unit while the Minister of Home Affairs shall decide on its classification if it is a district-level administrative unit.

3. After an administrative unit has its administrative boundaries adjusted, if it is merged or founded under a decision of competent authorities; the concerned provincial- or district-level People's Committee shall request competent authorities to consider and decide to adjust the classification of that administrative unit.

4. The adjustment of classification of administrative units specified in Clauses 1, 2 and 3 above complies with the provisions of this Decree.

Article 12.- Handling of violations

1. All forms of cheating to distort data in the compilation of dossiers for calculating classification points, in the approval, evaluation and promulgation of decisions classifying provincial- or district-level administrative units are strictly prohibited.

2. Organizations or individuals that commit acts of violation specified in Clause 1 of this Article shall, depending on the nature and severity of their violations, be handled in accordance with current law.

Article 13.- Implementation effect

This Decree takes effect 15 days after its publication in "CONG BAO"; the Minister of Home Affairs shall guide the implementation of this Decree.

Article 14.- Implementation responsibilities

Ministers, heads of ministerial-level agencies, heads of government-attached agencies and presidents of provincial/municipal People's Committees shall implement this Decree.