Yes, there is still more to do. It has changed a lot but there are still a lot of building that have been left abandoned in the city centers.
And yes, there is a psychological border still present, even after so many years. Communism has left more scars than imagined. Both parts of the country have been leveled after WWII, but only the West developed fast and had a huge advantage in the 90 and still has some from the economic point of view.