Hoa Binh achieved all 19 socio-economic development targets last year, surpassing plans and marking a record high in state budget revenue. The province exceeded the Prime Minister's revenue target by 87%, ranking among the top localities that surpass budget revenue projections.
In 2024, private enterprises reported strong revenues, contributing to the significant annual increase in state budget collections. Photo: The Da Hop joint Stock Company invests in the infrastructure of the Tien Tien industrial cluster in Quang Tien commune, Hoa Binh city, making a substantial contribution to the state budget.
Big challenges, great determination
The year 2024 presented significant challenges to local socio-economic management. Extreme weather conditions, including heavy damages from Typhoon Yagi, and policy changes impacted production and business activities. Many investment projects faced delays, and revenue sources declined due to tax, fee, and charge exemptions and reductions.
Internally, although the local investment environment and administrative reforms improved, the provincial competitiveness index remained low. Many unresolved obstacles in investment projects led to weak capital absorption, while the real estate market stagnated, and some sectors continued to face business and production difficulties.
The Government and National Assembly supported citizens and businesses by reducing VAT by 2% through the end of the year, extending tax deadlines, and cutting land and water surface rents. These measures reduced provincial tax revenue by approximately 628 billion VND (24.78 million USD).
Despite these challenges, the entire political system showed determination and significant efforts to meet state budget collection goals.
Exceptional achievements in state budget revenue for 2024
The provincial Tax Department implemented comprehensive measures from the beginning of last year.
The province recovered approximately 1.85 trillion VND in overdue taxes, equivalent to 73% of collectible tax arrears as of December 31, 2023. This included 250 billion VND collected through tax management measures and 1.6 trillion VND recovered via enforcement actions.
According to Vu Hong Long, Director of the provincial Tax Department, the agency prioritised supporting taxpayers, addressing challenges, and ensuring the effective implementation of resolutions aimed at facilitating business recovery and growth.
Also in 2024, the province’s state budget revenue was above 7.55 trillion VND, surpassing the central government’s target by 87% and the provincial People’s Council resolution target by 31%.
Among 17 revenue categories, 14 exceeded projections, with remarkable surpluses in areas such as land use fees (340.1%), dividends (350%), other budget revenue collection categories (328%), land and water lease fees (294.3%), and fees and charges (216.9%).
In addition, local budget revenue collection revenue amounted to over 26.96 trillion VND, up 13% year-on-year and exceeding the Government’s target for the year by 87% and the province’s by 67%. Districts such as Luong Son, Mai Chau, Lac Son, and Kim Boi achieved tax and fee collection rates significantly above their assigned targets, ranging from 145% to 158%. These outcomes reflect a positive recovery across economic sectors and set a strong foundation for further growth in 2025.
Quach Tat Liem, Vice Chairman of the provincial People’s Committee, stressed that the exceptional results played a vital role in the province's socio-economic development. As Hoa Binh approaches the final year of implementing the 17th provincial Party Congress Resolution for the 2020–2025 term, it is committed to fulfilling and exceeding state budget revenue targets.
Dao Village’s honey – a product certified with a 3-star OCOP (One Commune One Product) rating by Thong Nhat Agricultural Cooperative in Dao Village (Hoa Binh City) – is highly regarded by consumers for its quality, richness, and variety in packaging. The distinctively sweet taste of Dao Village’s honey leaves a lasting impression on anyone who has tried it.
In alignment with Project No. 07-DA/TU, issued by the Hoa Binh provincial Party Committee on November 1, 2021, Lac Thuy district has actively promoted investment and supported the sustainable development of its industrial and handicraft sectors during the 2021–2025 period. Alongside this, the district has remained committed to preserving and revitalising traditional craft villages.
Located in the northern part of Lac Thuy district, with a temperate climate and fertile soil, Phu Thanh commune has great potential and advantages in growing tea. The long-standing experience, combined with strict adherence to organic farming practices in the tea gardens, ensures that the dried tea products from Phu Thanh and Lac Thuy as a whole are sold out immediately upon production, providing a stable and prosperous life for the local people.
Amid efforts to streamline the administrative apparatus, Hoa Binh province has intensified measures to address challenges in land clearance, resettlement support, and infrastructure investment, aiming to speed up the progress of key projects.
Hoa Binh province has posted an unprecedented economic growth rate of 12.76% in the first quarter of 2025, marking its highest quarterly performance to date and positioning it as the second fastest-growing locality in the country, trailing only Bac Giang province.
Under current regulations, products in the One Commune – One Product (OCOP) programme that are rated three stars or higher must undergo re-evaluation every three months. However, in reality, some of these products fail to consistently meet the required standards, raising concerns about the sustainability of their OCOP certification. This underscores the urgent need for producers to enhance product quality and gradually develop their OCOP products into strong, marketable brands.
