After four months of implementation, the model has produced certain and promising positive outcomes, but it has also revealed critical gaps that must be addressed to ensure the reform works in practice.
The streamlining of administrative structures following the reorganisation of provincial units is beginning to yield clear improvements in the investment and business climate.
Since July 1, 2025, when district-level administrative units stopped operating, the national business registration system for enterprises, household businesses and cooperatives has been running under the rules of the two-tier local administration model.
