Hanoi (VNA) – One year after the historic July 1, 2025 milestone, Vietnam’s public administration undertook an unprecedented transformation. The abolition of the district-level administrative tier to establish a two-tier local administration model represents more than administrative streamlining. It marks a fundamental shift in governance thinking, reflecting the country’s determination to build an enabling government and bring State power closer to the people.
A revolution in reorganising the administrative boundary
July 1, 2025 marked an historic turning point in Vietnam’s administrative development. For the first time since 1945, the country ended the operation of the district level and entered an era of two-tier local administration featuring the provincial and commune levels.
The transition was institutionalised through the 2025 amended Law on Organisation of Local Administration, with the central message that the system must move “from completing organisational restructuring to operating the apparatus effectively” and from a management-oriented approach to one focused on removing bottlenecks and inspiring development.
Looking back on the first year of implementation, Deputy Minister of Home Affairs Vu Chien Thang said the two-tier model was not simply about ending the district-level administration, but represented a restructuring of local governance towards a leaner, modern, and effective system.
Under the model, provincial-level authorities focus on development strategies, resource coordination, spatial planning, inspection and supervision, while commune-level authorities directly implement policies, provide public services and serve citizens and businesses. This clearer division of responsibilities has reinforced decentralisation, accountability and proactivity.
Thang said the reform has produced positive changes, including a leaner apparatus, stronger digital transformation and improved public services. The distance between authorities and citizens has been shortened, while local administrations have become more responsive to policy bottlenecks.
Local administrations are gradually shifting from an administrative management mindset to one of service and development facilitation, putting people and businesses at the centre of task implementation, he said.
When authorities become closer to the people
Hanoi offers a vivid example of the reform’s impact. The capital reduced 400 commune-level administrative units, equivalent to 76.05%, and now operates 126 such units under the two-tier model.
The city has delegated authority for 659 administrative procedures, bringing decision-making closer to where problems arise. From July 1, 2025 to January 31, 2026, its public administration system received and processed more than 2.26 million dossiers. Streamlined procedures, fewer required documents, and greater online processing saved an estimated 571,925 working hours, equivalent to around 63.48 billion VND (2.4 million USD) in social costs.
Hanoi also focused on restructuring 25 key administrative procedures, accounting for about 81% of total dossiers, creating a broad impact on public satisfaction.
In Ho Chi Minh City, Thu Duc ward, with more than 120,000 residents following its merger, has pioneered “non-territorial administrative procedures”, allowing citizens to access services at any service counter with support from two AI robots. The ward has processed 28,066 dossiers, with online submissions exceeding 91%, on-time processing reaching 99.7% and satisfaction surpassing 98%.
A deeper shift in governance thinking
According to Associate Professor and Dr. Tran Thi Thanh Thuy of the Ho Chi Minh National Academy of Politics, the reform represents a fundamental shift from maintaining administrative layers to optimising governance value chains, from “management” to “empowerment”, and from operating an apparatus to delivering public results and value.
She said the abolition of the district-level tier has created a new impetus for public administration, encouraging a shift from passive “management and control” towards service orientation and substantive accountability.
Ultimately, the success of the two-tier model should not be measured solely by the number of merged agencies or savings from personnel reductions. Its greatest value lies in faster and more effective services, greater initiative among public officials and, above all, stronger social trust./.
