2025-03-28: South Korea's View: US Enacts 25% Tariffs on Imported Autos
Key Developments in Operations Across Asia Today
Good Morning,
Below are some of the most important developments in business and economics in Asia today.
▪️ China: US Intensifies TikTok Sale Talks Amid Security Concerns and Potential Tariff Reductions
US negotiations surrounding TikTok focus on addressing national security concerns and complying with US laws while facilitating a sale of the platform.
▪️ Taiwan: Trump's Auto Tariffs Reshape Global Industry Dynamics
Trump has imposed new tariffs that redefine the pricing and production landscape for the auto industry.
▪️ South Korea: US Enacts 25% Tariffs on Imported Autos and Components
US officials have introduced sweeping measures that impose tariffs on imported automobiles, light trucks, and key automotive parts.
▪️ Japan: Japan's Strategic Release of Rice Stockpiles to Stabilize Market
Japan’s government and agricultural officials are addressing challenges in rice distribution and procurement by actively releasing stockpiled rice, with measures set to begin in April.
▪️ India: Delhi's Transformative Budget 2025: A New Era of Infrastructure and Public Services
Delhi Budget 2025 lays out the city government's plans to transform its public services and infrastructure for the upcoming fiscal year.
▪️ Indonesia: Indonesia Joins BRICS New Development Bank for Sustainable Growth and Economic Transformation
Indonesia has decided to join the BRICS New Development Bank, aligning its efforts with broader sustainable development and economic transformation strategies.
▪️ Vietnam: Vietnam's Major Administrative Restructuring: Ho Chi Minh City and Beyond
Vietnam is undertaking a significant restructuring of its administrative units following plans announced by National Assembly Chairman Tran Thanh Man during a meeting of full-time National Assembly deputies for the 15th term.
For more information on these developments, please see the full report below.
Thanks for reading,
Rodney J Johnson
Today's Developments
Widely Reported On Issues of Importance
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US Intensifies TikTok Sale Talks Amid Security Concerns and Potential Tariff Reductions
US negotiations surrounding TikTok focus on addressing national security concerns and complying with US laws while facilitating a sale of the platform.
US negotiations regarding TikTok have intensified amid national security concerns and the looming April 5 deadline that requires ByteDance to secure a non-Chinese buyer.
Legislation passed last year mandates that ByteDance divest TikTok, valued in the tens of billions, due to fears of Chinese government surveillance. With TikTok used by 170 million Americans, US regulators scrutinize its future, and current discussions work to resolve the security worries while facilitating a compliant sale.
In an effort to facilitate a deal, President Donald Trump has signaled his willingness to reduce tariffs on Chinese imports, which recently increased from 10% to 20%.
US officials consider potentially offering this tariff relief to secure Beijing’s approval and address national security concerns related to TikTok's Chinese ownership. Trump mentioned that he might extend the April 5 deadline if necessary, while Vice President JD Vance expressed optimism about reaching an agreement on schedule. Negotiators are engaging with four interested groups, including entities such as AI startup Perplexity, Microsoft, Oracle, and a consortium led by Frank McCourt, with each proposal carrying different implications regarding control over the platform's algorithm and market competition.
References for this Development
Trump hints at tariff concessions if China agrees to TikTok deal
Inquirer Net | English | News
Trump says willing to cut China tariffs to get TikTok deal done
Deal Street Asia | English | News
Trump hints at tariff concessions if China agrees TikTok deal
The Manila Times | English | News
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Trump's Auto Tariffs Reshape Global Industry Dynamics
Trump has imposed new tariffs that redefine the pricing and production landscape for the auto industry.
US President Trump will enforce a series of reciprocal tariffs beginning on April 2, 2025, with a strong focus on imported vehicles and broader trade measures.
The administration will impose a 25% tariff on all vehicles not manufactured in the United States while exempting domestically produced cars. Analysts estimate these tariffs could increase the prices of non-US gasoline and electric vehicles by approximately $10,000 or more. Some experts contend that more aggressive tariffs, possibly in the 40–50% range, would be necessary to exert stronger pressure on imported vehicles. This policy is part of a broader US trade strategy targeting countries with large trade surpluses, including Taiwan, which the Trump administration has identified among the "Dirty 15."
The administration has provided limited details regarding the tariff’s application, notably leaving unresolved how foreign-made auto parts will be treated relative to fully assembled vehicles.
The plan exempts auto parts manufactured in the United States and offers a grace period for imported parts until early May. Major automakers such as Stellantis, Ford, and General Motors received communication from the administration urging them to start or expand US manufacturing facilities. Additionally, existing tariff exemptions for vehicles imported under the USMCA from Canada and Mexico will soon expire, which is likely to raise import costs from those countries.
The tariffs are set to influence vehicle prices and disrupt international supply chains.
Under the new regime, prices for non-US gasoline and electric cars may rise significantly. A typical $40,000 vehicle could see an increase into the low $50,000 range, with some estimates suggesting price hikes between $6,000 and $10,000. This escalation may shift consumer demand from higher-priced luxury vehicles to more affordable options. Companies with predominantly US production, such as Tesla and Rivian, benefit from the measure, while foreign manufacturers like Benz, BMW, and several Asian automakers face potential adverse impacts.
Financial markets have reacted to the tariffs with declines observed in major US stock indexes, including the Dow Jones Industrial Average, S&P 500, and Nasdaq.
Markets in Taiwan experienced downturns, with noticeable drops in TSMC ADR values and the broader stock market. The uncertainty of the measures, combined with expectations of further reciprocal tariffs from countries that contribute significantly to the trade deficit, has fueled market volatility and increased short selling by foreign investors.
Analysts predict significant shifts in North American auto manufacturing and trade.
Auto imports from Canada, Mexico, Japan, South Korea, and Germany, which currently total hundreds of billions of dollars annually, could decrease production by up to 30% and reduce the daily import of vehicles by around 20,000 starting in mid-April. These production changes are expected to disrupt supply chains and potentially affect employment levels within the auto sector, with data from industry stakeholders suggesting adjustments in production and job numbers as likely outcomes.
Government and industry responses have revealed broader international repercussions.
Although the new policy aims to boost American manufacturing, officials in Canada, Europe, and Japan have criticized the tariffs. Canadian authorities, in particular, have announced significant support measures for their domestic auto sector and preparations for countermeasures, as the policy targets vehicles assembled offshore, including those produced under free trade agreements.
References for this Development
台股空頭警報？輝達、台積電ADR摔跤...科技股殺聲隆隆
Taiwan stock market short alert? Nvidia and TSMC ADRs are wrestling...tech stocks are on the rise
Yahoo News Taiwan | Local Language | News
美股早盤道瓊獨漲！輝達與台積電ADR股價疲軟 川普關稅說詞反覆
NOWnews | Local Language | News
川普祭汽車關稅 美股收跌
US stocks fall as Trump imposes auto tariffs
Liberty Times Net | Local Language | News
川普祭汽車關稅美股收跌 投顧：聚焦經濟數據
Trump imposes auto tariffs, US stocks close down, investment advisor: focus on economic data
Central News Agency | Local Language | News
川普關稅！00919、00878、0056逆勢吸逾20萬張…奪ETF成交王
Yahoo Finance | Local Language | News
美國將對等關稅 謝金河：川普揮大刀恐帶來很大後座力
The United States will impose equal tariffs. Xie Jinhe: Trump's big sword may bring great recoil
United Daily News | Local Language | News
《台北股市》權值三王齊殺 大盤破22000點 融資連10減 靜待關稅烏雲散
Yahoo Finance | Local Language | News
川普要收汽車關稅！台股暴跌逾300點、失守22000點 台積電挫21元至959元
Yahoo News Taiwan | Local Language | News
川普關稅台股殺近300點 台積電跌19元至961
ETtoday | Local Language | News
川普關稅政策對台股有影響 金管會：大盤有韌性
United Daily News | Local Language | News
川普關稅不確定性揮之不去 歐股互有漲跌
European stocks mixed as Trump's tariff uncertainty lingers
Liberty Times Net | Local Language | News
川普新關稅可望較預期溫和 亞股多收高
Trump's new tariffs are expected to be milder than expected; Asian stocks close higher
Central News Agency | Local Language | News
Taiwan shares end little changed despite tariff concerns
Focus Taiwan | English | News
川普關稅疑慮稍緩 日股收漲
Japanese stocks rise as Trump tariff concerns ease
Central News Agency | Local Language | News
《基金》台股平衡基金 迎戰川普2.0
"Funds" Taiwan Stock Balanced Funds Face Trump 2.0
Yahoo Finance | Local Language | News
裕隆股價低於淨值 總座致歉「沒做好」 估今年代工不受川普關稅影響
The Storm Media | Local Language | News
川普對進口汽車徵25%關稅 分析曝新車價格「恐漲逾33萬」
ETtoday | Local Language | News
做台灣自己的生意！川普汽車關稅大刀來了 這檔獨強
Do your own business in Taiwan! Trump's auto tariffs are coming.
United Daily News | Local Language | News
《台北股市》關稅煙硝味四散 台股大跌逾300點
Taipei Stock Market: The smoke of tariffs spreads as Taiwan stocks plunge more than 300 points
Yahoo Finance | Local Language | News
川普貿易戰再升級！對外國進口汽車開徵25％關稅，美國進口車成本飆漲20萬
The Storm Media | Local Language | News
川普宣布對進口車加徵25%關稅 嗆明：要來美國賣車就來設廠
The Storm Media | Local Language | News
川普祭25%汽車關稅！陸行之點13家業者衝擊深 台積電衝擊小
NOWnews | Local Language | News
川普新關稅！台積電車用佔比5%影響小 陸行之點13家業者衝擊深
ETtoday | Local Language | News
川普關稅開第一槍！台積電一天市值蒸發5千億元失守25兆元大關
Yahoo Finance | Local Language | News
川普再出重拳！對所有「非美國製造」汽車徵25％關稅
Trump strikes again! 25% tariff on all cars not made in the U.S.
Liberty Times Net | Local Language | News
川普揮舞關稅大刀！謝金河：世界有變數、恐帶來很大後座力
Trump wields the tariff sword! Xie Jinhe: The world is changing, which may bring great backlash
NOWnews | Local Language | News
美對等關稅在即！謝金河：恐帶來很大後座力
US reciprocal tariffs are imminent! Xie Jinhe: It may bring great recoil
Yahoo News Taiwan | Local Language | News
搶先在川普關稅宣布前投資美國 現代汽車自剖應對潛在關稅最佳辦法
The Storm Media | Local Language | News
台股挫咧等！川普關稅日韓股殺逾1％ 台指期挫300點
ETtoday | Local Language | News
川普老愛先衝突再達成共識…其實他很在乎股市！伊森：00757、00662或是0050
United Daily News | Local Language | News
美國4／2徵25％汽車關稅 謝金河：川普揮大刀帶來很大後座力
US imposes 25% auto tariffs on April 2 Xie Jinhe: Trump's big move brings huge backlash
ETtoday | Local Language | News
川普宣布汽車關稅！美股收黑 台積電ADR下殺逾4％
Trump announces auto tariffs! US stocks closed in the red; TSMC ADR fell more than 4%
Liberty Times Net | Local Language | News
川普祭汽車關稅！股匯齊挫 新台幣早盤開升後回貶破33.1元
NOWnews | Local Language | News
美國4/2課徵25%汽車關稅 川普：所有國家適用
The United States imposed a 25% auto tariff on April 2, Trump: All countries are eligible
TTV News | Local Language | News
川普開徵汽車關稅！美股終結3連漲 特斯拉跌逾5％
Trump imposes tariffs on cars! US stocks ended 3 consecutive gains, Tesla fell more than 5%
ETtoday | Local Language | News
川普祭出汽車關稅重拳！台股早盤失守2萬2 台積電跌至962元
The Storm Media | Local Language | News
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US Enacts 25% Tariffs on Imported Autos and Components
US officials have introduced sweeping measures that impose tariffs on imported automobiles, light trucks, and key automotive parts.
US President Donald Trump announced a 25 percent tariff on imported automobiles, light trucks, and key automotive parts, effective April 2, 2025.
He implemented the measure under Section 232 of the Trade Expansion Act, applying it to all vehicles and components not manufactured in the United States while exempting domestically produced vehicles. The administration projects that these measures could generate over $100 billion in annual tariff revenue and potentially up to $1 trillion over two years. It also plans to impose reciprocal tariffs on countries that levy tariffs on US exports.
The tariffs target foreign-made automobiles to boost domestic manufacturing and reduce trade deficits by increasing the cost of vehicles not produced in the United States.
The policy is designed to encourage foreign automakers to assemble vehicles and manufacture parts within the country, while importers under the US-Mexico-Canada Agreement can certify US content to reduce their tariff liabilities. This tariff maneuver forms part of a broader strategy that seeks to address trade inequities with reciprocal tariff measures against several nations.
South Korea, a significant exporter of automobiles to the United States, is closely monitoring these developments.
Nearly 50 percent of South Korea's car exports, totaling approximately $34.7 billion, are directed to the US, and the new tariff structure poses a significant challenge to its automotive industry. South Korean manufacturers including Hyundai Motor Group and GM Korea now face potential declines in US demand. In response, Hyundai Motor Group has announced a $21 billion investment in the United States by 2028, allocating a substantial portion to the automotive sector. The new tariffs also undermine the longstanding benefits provided by the bilateral free trade agreement that has been in effect since 2016.
Federal Reserve officials have expressed concerns about the potential inflationary effects of the tariffs.
Alberto Musallem and Neel Kashkari have noted that while the tariffs may initially raise prices, they could also trigger prolonged inflationary pressure through secondary effects. This risk might affect consumer and corporate confidence, altering spending behaviors. Research indicates that even a 10 percent rise in tariffs could increase inflation by more than one percentage point, complicating monetary policy, especially if the labor market remains robust.
Market reactions have appeared in both the United States and South Korea.
In Seoul, the Korea Composite Stock Price Index (KOSPI) declined immediately after the tariff announcement, and key automotive stocks, including those of Hyundai Motor and Kia, experienced notable drops. At the same time, South Korea’s local currency depreciated slightly against the US dollar, coinciding with declines in major US indexes such as the Nasdaq composite. These market movements reflect broader concerns about the tariff measures and their potential cascading effects on global supply chains and trade flows.
References for this Development
(URGENT) Trump says 25 pct auto tariffs go into effect on April 2
Yonhap | English | News
트럼프 車 관세 불똥…산업장관 업계 찾고 범부처 대책회의 연다
Money Today | Local Language | News
(5th LD) Trump announces 25 pct auto tariffs to take effect April 2
Yonhap | English | News
트럼프 "4월2일부터 수입차·부품 25% 관세"…한국 직격탄(종합2보)
Newsis | Local Language | News
(3rd LD) Trump announces 25 pct auto tariffs to take effect April 2
Yonhap | English | News
트럼프 관세의 '긴 그림자' 경고한 연준 관계자들 "인플레 길어지면 더 제한적 통화정책 가능" [Fed워치]
Hankyung | Local Language | News
Trump to announce auto tariff as soon as Wednesday: report
Yonhap | English | News
트럼프 “4월 2일, 자동차 25% 관세 부과”
Trump: “25% tariff on automobiles on April 2nd”
ET News | Local Language | News
(URGENT) Trump announces 25 pct tariffs on all cars not made in U.S.
Yonhap | English | News
(4th LD) Trump announces 25 pct auto tariffs to take effect April 2
Yonhap | English | News
[속보]트럼프 "모든 수입산 자동차에 25% 관세 부과"
[Breaking News] Trump: "25% Tariff on All Imported Cars"
Newsis | Local Language | News
Kospi opens lower on Trump's auto tariff announcement
Joongang Ilbo | English | News
Hyundai, Kia shares tumble as Trump hit 25% car tariffs
Joongang Ilbo | English | News
Seoul shares open lower on Trump's auto tariff announcement
Yonhap | English | News
Trump announces 25% auto tariffs to take effect April 2
Korea Herald | English | News
[속보] 트럼프 “외국산 자동차에 25% 관세 부과”…4월2일 발효
[Breaking News] Trump “25% Tariff on Foreign Cars”… Effective April 2nd
Hankyoreh | Local Language | News
(2nd LD) Trump announces 25 pct auto tariffs
Yonhap | English | News
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Japan's Strategic Release of Rice Stockpiles to Stabilize Market
Japan’s government and agricultural officials are addressing challenges in rice distribution and procurement by actively releasing stockpiled rice, with measures set to begin in April.
Stockpiled rice accumulated from distribution challenges and reduced procurement from farmers over the past year will now enter the market.
Officials from the National Federation of Agricultural Cooperative Associations (JA Zennoh) confirmed that auctioning the stockpiled rice aims to restore the flow of rice that has been stagnant in distribution channels.
Earlier this month, the first auction enabled JA Zennoh to acquire more than 130,000 tons—accounting for over 90 percent of the total rice offered.
Approximately 142,000 tons were sold at an average price of 21,217 yen per 60 kg of brown rice, with the rice released in stores without labels to avoid causing consumer confusion.
Facing a significant increase in domestic rice prices—with 5 kg bags selling for over 4,000 yen in Tokyo—government and industry officials have implemented measures to facilitate distribution.
They are selling the rice as a blend sourced from multiple regions to alleviate consumer concerns and rapidly reintegrate the stockpiled rice into the market.
The Ministry of Agriculture, Forestry and Fisheries is coordinating a second round of bidding to commence on March 26, which will release an additional 70,000 tons of government stockpiled rice.
This second auction includes unsold quantities from the initial auction and comprises 40,000 tons from the 2024 crop and 30,000 tons from the 2023 crop, featuring varieties such as Ten-no-Tsubu from Fukushima and Haenuki from Yamagata. Applications close on March 26, and scheduled deliveries will occur in mid-April.
Efforts to enhance rice procurement aim to secure 2.27 million tons this year, representing an increase of more than 20 percent compared to last year.
JA Zennoh is exploring new contract types with farmers to improve collaboration and achieve procurement targets. In addition, regulatory modifications enacted in January now allow more flexible rules for the release of stockpiled rice, along with provisions for repurchasing the same quantity and quality within a year, ensuring continuity in the national supply.
References for this Development
備蓄米入札、２回目開始 ７万トンを４月上旬放出 価格落ち着くか焦点
Tokyo Shimbun | Local Language | News
備蓄米放出、江藤農相「２回目の状況みた上で３回目考える」…あすから７万トン入札
Yomiuri Shimbun | Local Language | News
備蓄米入札、2回目開始 7万トンが4月上旬市場へ 高騰落ち着くか
Mainichi Shimbun | Local Language | News
コメ不足なのに補助金を出して輸出促進？ 産地では「これから育てるコメ」の奪い合い…政府対策のズレ加減
Tokyo Shimbun | Local Language | News
Japan's rice stockpiles to be in stores from April, agri-coop federation says
NHK | English | News
備蓄米、本格販売４月から 全農、流通停滞の解消期待
Tokyo Shimbun | Local Language | News
政府備蓄米の2回目入札開始 農水省、7万トン放出へ
Nikkei | Local Language | News
備蓄米入札、2回目開始 7万トンを4月上旬放出 価格落ち着くか焦点
Nishi Nippon | Local Language | News
全農、25年産のコメ集荷50万トン増へ 国内1ヵ月分、農家と契約見直し 備蓄米は4月から本格販売
Nishi Nippon | Local Language | News
備蓄米、2回目の入札開始＝7万トン、28日まで―農水省
Yahoo Finance | Local Language | News
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Delhi's Transformative Budget 2025: A New Era of Infrastructure and Public Services
Delhi Budget 2025 lays out the city government's plans to transform its public services and infrastructure for the upcoming fiscal year.
Delhi Chief Minister Rekha Gupta has unveiled a budget of 1 lakh crore for fiscal year 2025-26.
This marks the first budget under a BJP-led government in over 26 years following their electoral victory over the Aam Aadmi Party. The proposed allocations reflect a significant increase compared to previous fiscal efforts, with one report indicating a 31.5% rise from the previous year and another citing a 34% jump relative to the budget under the AAP government.
The budget prioritizes ten areas, dedicating substantial resources to infrastructure, healthcare, women's economic empowerment, education, and environmental projects.
Major infrastructure initiatives receive a planned capital expenditure of 28,000 crore, which includes 1,000 crore to improve transport connectivity with the National Capital Region, 3,800 crore for broader development projects, and 1,400 crore drawn from the Chief Minister's Road Development Fund. The transport sector benefits further from 2,929 crore aimed at addressing Metro liabilities and the deployment of 5,000 electric buses to enhance public transportation.
Alongside infrastructure, the budget commits significant funds to healthcare and public utilities.
The health sector receives an allocation of 6,874 crore, while 2,144 crore supports the PM Jan Arogya Yojana. A dedicated sum of 9,000 crore targets the provision of clean drinking water and improved sanitation, featuring measures such as installing GPS systems in water tankers and launching slum development and sewage management projects. In addition, environmental initiatives secure 500 crore for cleaning the Yamuna River.
Women's economic empowerment is a key focus, with 5,100 crore dedicated to the Mahila Samriddhi Scheme that provides monthly allowances of 2,500 for eligible women.
The city also plans to improve women's safety by installing 50,000 CCTV cameras across urban areas.
Investments in education reinforce the city's commitment to development, with 100 crore earmarked for CM SHRI Schools and an allocation of 750 crore to supply free laptops to students.
The budget also provisions for language labs and skill development programs. Cultural and tourism efforts appear through plans to launch an International Film Festival and an allocation of 117 crore for tourism and city branding projects.
Additional priorities include modernizing electrical infrastructure, constructing a new jail, deploying animal welfare schemes, and establishing Atal canteens at 100 locations.
The budget further proposes the creation of a Traders Welfare Board and the organization of a Global Investment Summit in Delhi, reflecting a comprehensive strategy to reform various aspects of the city's administration, social framework, and infrastructural landscape.
References for this Development
Delhi Budget 2025: Rekha Gupta's govt to issue cards to women for free-bus rides
Hindustan Times | English | News
Delhi unveils ₹1L-cr budget with double-engine thrust
Hindustan Times | English | News
Delhi Budget 2025: 6 new monitoring stations for air quality, 32 for water
Hindustan Times | English | News
Delhi Budget 2025: Govt aligns with rest of India on health
Hindustan Times | English | News
Delhi Budget 2025: ‘Bullet speed development’ — goal for smoother roads, links
Hindustan Times | English | News
Livemint | English | News
Atishi slams Delhi Budget as ‘Hawa Hawai,’ calls it baseless
The Statesman | English | News
The Hindu | English | News
The Hindu | English | News
With a record 32% hike, Rekha Gupta presents Rs 1L crore budget for Delhi
Times of India | English | News
Hindustan Times | English | News
Livemint | English | News
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Indonesia Joins BRICS New Development Bank for Sustainable Growth and Economic Transformation
Indonesia has decided to join the BRICS New Development Bank, aligning its efforts with broader sustainable development and economic transformation strategies.
Shortly after achieving full membership in the BRICS bloc in 2025, Indonesia accepted an invitation to join the NDB, a decision confirmed by President Prabowo Subianto during a meeting with NDB President Dilma Rousseff in Jakarta.
The bank has already approved $39 billion in financing and maintains an authorized capital of $100 billion, primarily supporting infrastructure initiatives. However, Indonesia aims to use its membership to advance sustainable development and transformation strategies. Finance Minister Sri Mulyani communicated the decision and described ongoing discussions regarding technical membership requirements, potential collaborations with Danantara Indonesia and the Investment Management Agency, and a broader objective to foster economic growth while reducing reliance on the US dollar in trade.
The new membership arrives as the NDB prepares to support a range of initiatives in Indonesia, including a comprehensive long-term planning framework featuring 77 national strategic projects across sectors such as education, agriculture, and renewable energy.
Discussions have also pointed to the possibility of adapting existing regulatory frameworks to ensure a more equitable distribution of loans among emerging members, addressing the historical imbalance that has favored the initial BRICS nations. Indonesia’s entry into the NDB, following its recent full membership in BRICS alongside countries like Iran and Saudi Arabia, reflects a shared commitment to enhance development cooperation under the leadership of the bank.
References for this Development
Kemarin, RUPST Bank Mandiri hingga RI gabung NDB
Yesterday, Bank Mandiri's AGM to RI joined NDB
Antara News | Local Language | News
Indonesia Decides to Join BRICS' New Development Bank
The Jakarta Globe | English | News
Sri Mulyani sebut Danantara Indonesia bisa berkolaborasi dengan NDB
Sri Mulyani says Danantara Indonesia can collaborate with NDB
Antara News | Local Language | News
Kemarin, Presiden nonton Timnas hingga RI gabung New Development Bank
Yesterday, the President watched the National Team until RI joined the New Development Bank
Antara News | Local Language | News
Presiden umumkan Indonesia gabung keanggotaan New Development Bank
President announces Indonesia joins New Development Bank membership
Antara News | Local Language | News
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Vietnam's Major Administrative Restructuring: Ho Chi Minh City and Beyond
Vietnam is undertaking a significant restructuring of its administrative units following plans announced by National Assembly Chairman Tran Thanh Man during a meeting of full-time National Assembly deputies for the 15th term.
The government will streamline governance by eliminating all 696 district-level units and reducing the current approximately 10,035 communes by 60-70%.
It will consolidate provincial and commune-level units by about 50% at the provincial level while carrying out measures that include decentralization, power delegation, and anti-corruption directives in line with Central Committee policies.
The upcoming 9th session of the National Assembly is scheduled to run for nearly two months, including a break to gather public consultation feedback on constitutional amendments.
During this session, lawmakers will address numerous legislative proposals such as revisions to the Law on Special Consumption Tax, the Law on Corporate Income Tax, and the Digital Technology Industry Law. Lawmakers expect to pass about 11 laws and review opinions on 16 new legislative proposals, aligning the legislative framework with the administrative restructuring.
Ho Chi Minh City is advancing its own administrative reorganization in accordance with directives from the Politburo.
Local proposals call for merging existing wards to achieve a dramatic reduction in the administrative footprint. For instance, District 1 has proposed two options: one that merges existing wards while preserving boundaries and another that adjusts boundaries to reduce ward numbers by up to 80%. Specific district plans include Binh Thanh District reducing its 15 wards to 4, Go Vap District consolidating 12 wards to 3, Phu Nhuan merging 11 wards into 2, and Nha Be combining 7 communes into 2. The overall target for the city is to decrease the total number of administrative units from 273 to just over 80, with governance bodies set to review and approve submitted district plans through scheduled committee meetings.
References for this Development
Dự kiến phương án sắp xếp phường, xã ở TP HCM
Plan for rearranging wards and communes in Ho Chi Minh City
VN Express | Local Language | News
Vietnam to eliminate 696 districts and reduce 60-70% of communes
Vietnam Net - E | English | News
Sau sắp xếp dự kiến giảm 50% số đơn vị hành chính cấp tỉnh, giảm 60-70% cấp xã
VTV News | Local Language | News
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