Hoa Binh province’s economy posted an impressive Gross Regional Domestic Product (GRDP) growth rate of 12.67% in the first quarter of 2025, representing a 12.76% year-on-year increase, the highest rate recorded since the beginning of the current tenure, according to the provincial Statistics Office. This robust growth reflects years of strategic groundwork and sets a strong foundation for the province’s annual growth target of over 10%.


The implementation of key projects has contributed to promoting the province's economic growth. Photo: Construction of a road which passes through Cao Son commune (Luong Son district) is underway.

By sector, the industry and construction segment led the way, expanding by 27.18% and contributing 9.92 percentage points to the overall growth. Within this, industrial output alone surged by 33.1%, accounting for 9.4 percentage points. Meanwhile, the agro-forestry and fisheries sector grew by 4.19% year-on-year, contributing 0.76 percentage points, and the services sector expanded by 5.91%, adding 2.37 percentage points.

The service sector, which makes up about 34.6% of the province’s GRDP, received a significant boost thanks to the launch of new tourism destinations. The province has made key investments in port infrastructure and road systems surrounding the Hoa Binh Lake tourist site, while also restoring cultural and historical landmarks to attract more visitors. These developments have also driven notable growth in related industries: wholesale and retail trade increased by 8.93%, accommodation and food services by 17.36%, and transportation by 21.09%.

Although Q1 marks the beginning of a new agricultural crop, high-efficiency production models and value chains continued to thrive. Authorities have also maintained a strong focus on ensuring food safety and the quality of agricultural inputs. Hoa Binh currently boasts 158 One Commune One Product (OCOP) items rated between 3 and 4 stars, including seven products that have been shipped abroad, further bolstering the province’s agricultural output.

Nguyen Khanh Son, deputy head of the provincial Statistics Office, emphasised that this strong performance was not a short-term spike but rather the result of sustained, long-term planning and consistent effort.

Hoa Binh aims to achieve a minimum growth rate of 10% in 2025, surpassing the national target. To meet this goal, provincial authorities have instructed departments and localities to conduct thorough assessments, enhance forecasting capabilities, and deploy timely and effective solutions.

Key measures include accelerating investment in transport, industrial park infrastructure, and digital transformation, while assigning clear growth targets to each sector and locality with specific quarterly and biannual scenarios.

Building on the momentum from Q1, Hoa Binh anticipates strong growth in Q2 as well. The province plans to commence several major projects, including the Xuan Thien Hoa Binh lime and light powder production plant, new golf courses and urban development projects in Luong Son district and Hoa Binh city, and a large-scale eco-tourism and resort complex by Sun Group. At the same time, local authority will continue to roll out measures to stimulate domestic consumption, renew trade promotion activities, and ramp up export efforts, particularly targeting key international markets.

 

However, Son also acknowledged several ongoing challenges. External factors, such as US tariff policies, have negatively impacted export performance. Meanwhile, delays in land clearance, public investment disbursement, and the implementation of national target programmes remain obstacles to sustained economic progress.

To maintain growth momentum, he stressed the need to further improve the local business climate, attract more investment, and accelerate the development of the processing and manufacturing industries. Continued support for agriculture and services will also be essential, along with bold and timely actions to resolve bottlenecks and fast-track public investment, especially for large-scale and strategic provincial projects, Son added.


 


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