Challenges remain for the establishment of an efficient, streamlined two-tier local administration, according to the Prime Minister.
Prime Minister Pham Minh Chinh recently chaired a meeting on August 23, 2025, to discuss the ongoing administrative restructuring in Vietnam and address the various challenges that have arisen since the new two-tier local government model was implemented on July 1.
The new model, which shifts the administration from management-oriented to service-oriented, has seen significant progress. Over 4.4 million dossiers have been handled by public service centres since July 1, with 75% submitted online. Reforms under the new model have also won public consensus and increased confidence.
However, the Prime Minister has identified several areas of concern. He requested improvements to the legal framework, reviews of achievements, shortcomings, and obstacles, and proposed practical solutions. He also emphasised the need for tools to measure performance and the immediate addressing of staff shortages.
To address staff shortages, Party General Secretary To Laam has directed that action be taken immediately. According to reports, more than 94,000 officials have left their posts due to personnel downsizing, and over 50,000 officials have already received payments due to this process.
The guidelines to address personnel shortages were issued by relevant authorities responsible at regional or ministerial levels. These guidelines call for reinforcements from regional or ministerial levels to address the shortages. However, the specific issuer is not clearly identified in the provided search results.
The administrative restructuring has created new development space, with 465 specialised agencies established under 34 provincial-level People's Committees and 9,916 offices established under 3,321 commune-level committees.
Despite these advancements, there are still difficulties in personnel arrangements, infrastructure, budgeting, digitalisation, asset handovers, and housing for officials. The Ministry of Finance reported 16,124 surplus properties requiring handling, including 6,704 arising from restructuring.
Ministers have also pointed out remaining challenges, including uneven staff capacity, incomplete digitalisation, and difficulties in transferring data, assets, and finances. The Prime Minister has requested reviews of the conclusions of the Government and the Prime Minister to address these challenges effectively.
In conclusion, the administrative restructuring in Vietnam is a work in progress, with significant achievements and ongoing challenges. The Prime Minister's call for reviews, practical solutions, and immediate action demonstrates a commitment to addressing these challenges and ensuring the success of the new two-tier local government model.
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