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.
With the motto "product quality comes first," the Ban Muong Clean Food Agricultural Cooperative in Hung Son commune, Kim Boi district, has gained consumers’ trust after nearly a year of operation. Their products, including Ban Muong Vietnamese pork sausage and ready-to-eat salt-cured chicken and pig's trotters, are gradually establishing a solid market presence, with efforts underway to complete their One Commune-One Product (OCOP) certification process.
As large investors and projects play a crucial role in optimising local potential and advantages, Hoa Binh province has established a steering committee to promote major projects and foster progress. With strengths in agriculture, industry, and tourism, the province is positioning itself as an emerging investment destination in northern Vietnam.
The recent groundbreaking of a luxury eco-urban complex and cable car system in Cuoi Ha and Kim Boi communes of Kim Boi district, invested by Hoa Binh Sun Co. Ltd., is a demonstration of Hoa Binh province’s steadfast commitment to improving its investment environment. This flagship project exemplifies the province's ambition to become a leading destination for major domestic and international investors.
May 2025 marked a pivotal moment in Vietnam’s national development journey as the Politburo issued Resolution 68 on the development of the private economy. More than just a policy directive, this resolution represents a revolution in economic thinking and institutional reform, paving a promising "avenue” for the private sector’s growth.
Once seen as an industrial "zero" at the time of its re-establishment in 1991 and the following years, Hoa Binh province has undergone a remarkable transformation, emerging as a dynamic industrial hub in Vietnam's Northwest gateway region.
In Lac Thuy district, communes have been succeeded in promoting their One Commune-One Product (OCOP) products while others are still struggling to position their typical farming products in market. Some communes in the district still fail to have their products met OCOP programme’s requirements, while others have seen their certifications expired.
