While India continues to fixate on decoupling from China, a quiet storm is brewing in Southeast Asia—and it’s not red, it’s red-hot. Venture capitalist Rajeev Mantri has a bold warning: Vietnam, not China, may be India’s true competitor in the global manufacturing race.

Mantri, writing on X (formerly Twitter), highlights Vietnam’s radical new reform plan: “The government is slashing red tape—cutting the number of provinces and cities in half, eliminating an entire layer of government, and letting go of at least 20% of civil servants by 2030.”

The strategy, enshrined in Resolution 60, is the most dramatic reform package since Vietnam’s famed 1986 Doi Moi economic liberalization. Leading the charge is General Secretary To Lam, who’s bringing a corporate-style efficiency makeover to a socialist bureaucracy. His playbook: declutter the system, digitize a third of government processes, and streamline the Communist Party’s internal machinery.

Vietnam plans to consolidate its 63 provinces and cities into just 34 by September. This restructuring will eliminate redundant districts and put more than 60% of regions within direct reach of the sea—a big win for seafood exports, tourism, and logistics hubs.

Lam’s message is clear and urgent: “The world is sprinting ahead. If we don’t innovate now, we’ll be left in the dust.”

Civil servants currently earn between $110 and $890 per month. Under the new policy, pay will be aligned more closely with private sector benchmarks in an effort to reduce corruption. But saying goodbye to long-tenured bureaucrats is a delicate task. Lam encouraged voluntary exits, calling it “an act of bravery” for those who know they might not meet future expectations.

Vietnam’s lawmakers will convene through May and June to push through the required legislation—burning the midnight oil if they must. The end goal? A high-income, streamlined, and globally competitive Vietnam by 2045—one bureaucracy-free policy at a time.