The practical restructuring of the administrative apparatus and the fundamental transformation in governance thinking from traditional command-and-control administrative management to development-oriented governance. The author demonstrates the objective necessity of streamlining the state apparatus through the elimination of intermediate administrative levels, the optimization of governmental authority and the comprehensive implementation of decentralization and devolution. Building on this analysis, the article proposes a coherent set of strategic policy recommendations aimed at refining the two-tier local government model to meet the requirements of building a streamlined, effective, and efficient socialist rule-of-law state in Vietnam.
Keywords: Two-tier local government; Organizational restructuring; Urbanization; State governance thinking; Decentralization and devolution.
1. Introduction
Vietnam is entering a new stage of development characterized by pressing demands for institutional reform and the streamlining of the political system. Within the organizational structure of the state apparatus, local government serves as the direct link between the central government and the people, functioning as the primary mechanism for implementing Party guidelines and state policies while delivering public services. Throughout successive constitutional periods (1959, 1980, 1992, and 2013), Vietnam’s local government system has consistently maintained a three-tier administrative structure comprising the provincial level (provinces and centrally governed cities), the district level (districts and urban districts) and the commune level (communes and wards). This model successfully fulfilled its historical mission during the centrally planned economy and the early years of the Đổi Mới (Renovation) reforms.
However, in the context of rapid urbanization, comprehensive digital transformation, and deep international integration, the existing three-tier local government model has increasingly revealed significant institutional constraints. These include an oversized and multi-layered administrative apparatus, diminished effectiveness in policy implementation as decisions pass through intermediate administrative levels, and the diffusion of responsibility among governmental bodies. In response to these challenges, the 13th National Congress of the Communist Party of Vietnam, together with thematic resolutions adopted by the 13th and 14th Party Central Committees, has emphasized the need to further reform and reorganize the state apparatus into a streamlined structure that operates with greater effectiveness and efficiency.
The transition to a two-tier local government model, consisting of the provincial and grassroots levels, should not be understood merely as the mechanical elimination of an intermediate administrative tier. Rather, it represents a profound institutional transformation in which organizational restructuring serves as the driving force for a broader shift in state governance thinking from traditional administrative management toward modern, development-oriented governance. Against this backdrop, this study seeks to clarify the theoretical foundations of the two-tier local government model, assess the current state of institutional reform and propose a scientifically grounded roadmap for implementing this strategic transformation.
II. THE TWO-TIER LOCAL GOVERNMENT MODEL AND THE TRANSFORMATION OF MODERN STATE GOVERNANCE THINKING
In the process of reforming Vietnam’s national public administration, restructuring the local government system into a two-tier model has emerged as a significant approach to enhancing the effectiveness and efficiency of state governance. Fundamentally, this reform extends beyond a mere adjustment of the organizational structure; more profoundly, it represents a transformation in the conception of public authority and the operational logic of the administrative system.
From the perspective of institutional history, the traditional administrative model adopted in many countries, including Vietnam, has generally been organized as a multi-tiered structure, with relatively clear distinctions among the central, intermediate and grassroots levels of government. While this arrangement has facilitated hierarchical oversight and vertical accountability, it has also, in many cases, generated policy implementation delays, increased coordination costs and higher transaction costs in the delivery of public administration. In the context of rapidly evolving development demands requiring greater policy responsiveness, higher-quality public services and increased citizen satisfaction this organizational model has revealed inherent limitations, creating the need for a more streamlined and flexible institutional framework.
Against this backdrop, the two-tier local government model has been advanced as a structural reform strategy aimed at reducing intermediate administrative layers while strengthening decentralization and the delegation of authority to grassroots governments. This transformation is intended not only to optimize the organizational apparatus but also to redefine the relationship between the State, citizens and businesses by making governance more accessible, direct, and accountable.
From the perspective of contemporary public governance theory, particularly within the analytical frameworks of New Public Governance and Good Governance, this reform reflects a broader transition from a command-and-control model of public administration toward a governance model centered on performance, data-driven decision-making and accountability. Under this approach, the effectiveness of the state apparatus is no longer assessed solely in terms of procedural compliance; rather, it is evaluated through outcome-oriented indicators, including the speed of administrative procedures, the reduction of social and transaction costs, the transparency of governmental operations, and the quality of citizens’ experiences in accessing public services.
Viewed in the broader context of digital transformation and deepening international integration, the two-tier local government model can therefore be understood as a manifestation of the modernization of public administration. Its core objective is not merely the restructuring of the governmental apparatus but also the transformation of state governance thinking, in which implementation effectiveness and citizen satisfaction become the principal benchmarks for evaluating governmental performance.
Building upon these theoretical perspectives, this article employs an institutional analysis approach combined with the analytical framework of modern public governance. Drawing upon secondary data from policy reports, theoretical studies and practical experiences in administrative reform in Vietnam, the study seeks to clarify the essential characteristics of the two-tier local government model from the perspective of the transformation of state governance thinking.
III. MAJOR ACHIEVEMENTS AFTER ONE YEAR OF IMPLEMENTING THE TWO-TIER LOCAL GOVERNMENT MODEL
3.1. Streamlining the organizational apparatus and restructuring the administrative policy implementation chain
One of the initial outcomes of implementing the two-tier local government model has been the streamlining of the governmental apparatus and the reconfiguration of intergovernmental relations through the reduction of intermediate administrative levels. The reorganization of grassroots administrative units, together with the adjustment of the functions of intermediate levels in selected policy areas, has contributed to the establishment of a more direct governance structure, in which responsibilities and authority are more clearly delineated among different levels of government.
From a public governance perspective, this transformation can be understood as a restructuring of the policy implementation chain, whereby each level of government is assigned a clearly defined functional role within the overall process of policymaking and implementation. Such restructuring helps reduce the fragmentation of responsibilities while improving administrative coordination and the continuity of policy execution.
3.2. Improving the efficiency of administrative procedure processing under the new institutional framework
A notable manifestation of the two-tier local government model has been the improvement in the efficiency of administrative procedure processing. Despite a growing volume of administrative applications, the system has demonstrated enhanced processing capacity without experiencing a corresponding increase in operational overload. This improvement has been closely associated with the standardization of administrative procedures and the expanded application of information and digital technologies.
The reduction in processing time and the maintenance of a consistently high rate of on-time case resolution reflect a transition from manual, procedure-based administration to a digitalized system characterized by integrated data sharing and interconnectivity. This suggests that the effectiveness of administrative reform lies not only in organizational restructuring but also in transforming the operational logic of the administrative system toward one driven by standardized processes and data.
3.3. Establishing digital government administration and strengthening the role of data in public governance
During the implementation of the two-tier local government model, digital transformation has been identified as a foundational driver of more effective state governance. The expansion of online public services, electronic document management systems and shared government databases has progressively created a digital administrative environment capable of supporting more efficient and transparent public administration.
From the perspective of modern public governance theory, this development represents a transition from procedure-based governance to data-driven governance. In this model, data not only supports evidence-based decision-making but also becomes a fundamental element in redesigning administrative processes, standardizing workflows and strengthening monitoring, evaluation, and oversight across the administrative system.
3.4. From administrative management to service-oriented governance
Another significant trend observed during the implementation of the two-tier local government model is the transformation of governance thinking from a traditional administrative management approach toward a service-oriented governance model. Within this framework, citizens and businesses are increasingly recognized as the central beneficiaries of public service delivery rather than merely as subjects of administrative control.
The increasing levels of satisfaction among citizens and businesses indicate substantial improvements in the quality of public service delivery, including more professional public service conduct, greater transparency and enhanced accessibility to administrative services. From the perspective of public governance, these improvements constitute an important indicator of the transition from a traditional administrative model to a service-oriented government, in which governmental performance is evaluated not only by procedural compliance but also by the experiences and satisfaction of the primary beneficiaries of public policies.
IV. LIMITATIONS AND CHALLENGES IN THE IMPLEMENTATION OF THE TWO-TIER LOCAL GOVERNMENT MODEL
4.1. Increasing implementation pressure at the grassroots level under expanded authority
The processes of decentralization and devolution under the two-tier local government model have substantially increased the workload and responsibilities assigned to grassroots governments. As a greater range of powers has been transferred to the commune level without corresponding adjustments to organizational structures or staffing levels, local administrative systems have experienced growing pressure in fulfilling their expanded responsibilities.
This imbalance between the scope of authority and institutional implementation capacity is reflected in the need for many local officials to perform multiple functions simultaneously, despite varying levels of professional specialization. Consequently, concerns have arisen regarding the policy absorption capacity of grassroots governments, highlighting the need to redesign administrative workflows through procedural simplification and stronger support from integrated data systems and digital governance technologies.
4.2. Disparities in digital infrastructure and digital transformation capacity across localities
A structural challenge in implementing the two-tier local government model lies in the uneven distribution of digital infrastructure and digital capabilities across different localities. While major urban centers generally possess more advanced technological infrastructure and a stronger information technology workforce, many mountainous, remote and geographically disadvantaged areas continue to face significant constraints in accessing and operating digital administrative systems.
These disparities affect not only the pace of online public service deployment but also the consistency and standardization of administrative procedure processing nationwide. From a public governance perspective, such differences may lead to institutional capacity disparities within the national administrative system unless accompanied by effective coordination mechanisms and targeted support policies.
4.3. Limitations in the quality of the administrative workforce amid the transformation of the governance model
The quality of the administrative workforce at the grassroots level constitutes one of the most critical determinants of the effective operation of the two-tier local government model. Although many public officials have demonstrated a strong capacity to adapt to new institutional requirements, considerable disparities remain in competencies related to modern public governance, particularly in data analysis, digital system operation and policy problem-solving.
These competency gaps directly affect both the effectiveness of policy implementation and the consistency of governance practices across the two-tier local government system. They also underscore the urgent need to reform training and professional development programs by aligning them more closely with the requirements of digital governance, data-driven governance and the evolving competencies demanded by contemporary public administration.
V. RECOMMENDATIONS FOR IMPROVING THE TWO-TIER LOCAL GOVERNMENT MODEL
5.1. Refining the institutional framework for decentralization and devolution through greater clarity and consistency
Further improvement of the two-tier local government model should be embedded within the broader process of refining the institutional framework for decentralization and devolution, with particular emphasis on clearly defining the distribution of authority among different levels of government. Institutional design should seek to eliminate overlaps and gaps in governmental functions while ensuring coherence and consistency throughout the national administrative system.
From this perspective, decentralization and devolution should be implemented in accordance with the principle that authority, responsibility and implementation outcomes are aligned. Such an approach would contribute to the establishment of a governance structure characterized by greater transparency, accountability and measurable performance.
5.2. Ensuring genuine devolution accompanied by adequate resources and accountability
Under the two-tier local government model, devolution should extend beyond the mere transfer of administrative functions. It must be accompanied by the allocation of adequate financial, human and institutional resources, together with the establishment of clear accountability mechanisms. Only when authority is matched with corresponding resources and responsibilities can grassroots governments exercise genuine autonomy in implementing public policies.
This alignment is also essential for improving policy implementation effectiveness and minimizing delays in the delivery of administrative services.
5.3. Developing digital infrastructure and an integrated data system for state governance
Digital transformation should be regarded as a core component of modern state governance infrastructure rather than merely as a technical support solution. Accordingly, the development of interoperable data systems, standardized administrative processes, and robust information security mechanisms should be pursued within a unified framework encompassing all levels of government, from the central administration to grassroots authorities.
Within this framework, data serves not only as a management resource but also as the foundation for coordinating administrative operations, thereby enhancing transparency, strengthening oversight and improving the effectiveness of policy implementation.
5.4. Enhancing human resource quality to meet the requirements of modern governance
Human resources remain the central factor in the effective operation of the two-tier local government model. Consequently, comprehensive reforms in the training and professional development of public officials are required to align with the demands of modern public governance, with particular emphasis on policy analysis, data literacy, digital competencies and the operation of digital governance systems.
At the same time, performance evaluation mechanisms should be reformed to focus more explicitly on implementation outcomes and service effectiveness, thereby creating stronger incentives for improving the quality and professionalism of the public service.
CONCLUSION
Following its initial period of implementation, the two-tier local government model has demonstrated important progress not only in terms of organizational restructuring but also in the transformation of state governance thinking. This process reflects a broader shift from the traditional model of administrative management toward a modern system of state governance, in which decentralization, digital transformation and accountability have become increasingly prominent principles.
Within this new institutional framework, state authority is distributed more rationally by enhancing the autonomy of grassroots governments while simultaneously strengthening mechanisms of oversight through the rule of law and integrated governance data systems. Consequently, governmental performance is assessed not only by compliance with administrative procedures but also by the quality of public service delivery and the value created for citizens and businesses.
From a broader theoretical perspective, the two-tier local government model may be understood as a significant transformation in institutional thinking, whereby the effectiveness of the administrative system depends on the interaction of three fundamental factors: the appropriateness of decentralization and devolution, the institutional capacity for policy implementation and the effectiveness of mechanisms for controlling public power. Achieving a balanced integration of these three dimensions constitutes a critical prerequisite for building a modern, stable, efficient and sustainable public administration capable of meeting the demands of Vietnam's new stage of development.
Dr. Le Nguyet Minh
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