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.
A delegation of Hoa Binh province has attended the "Meet Korea 2025" event, recently held by the Ministry of Foreign Affairs, the Embassy of the Republic of Korea (RoK) in Vietnam, the Korea Trade-Investment Promotion Agency, and the People's Committee of Hung Yen province.
Hoa Binh province joined Vietnam’s national "One Commune, One Product” (OCOP) programme in 2019, not simply as a mountainous region following central policy, but with a clear vision to revive the cultural and agricultural values in its villages and crops.
From just 16 certified products in its inaugural year to 158 by early 2025, the One Commune One Product (OCOP) programme in Hoa Binh province has followed a steady and strategic path. But beyond the numbers, it has reawakened local heritage, turning oranges, bamboo shoots, brocade, and herbal remedies into branded, market-ready goods - and, more profoundly, transformed how local communities value and present their own cultural identity.
"Behind every One Commune One Product (OCOP)-starred product lies a quietly operating support system: technical staff, experts, trade fairs, and e-commerce platforms. OCOP cannot go far without forward-looking policy support," affirmed Nguyen Huy Nhuan, Director of the Department of Agriculture and Environment of Hoa Binh province.
The economic landscape of Hoa Binh province continued its impressive upward trajectory through the first four months of 2025, according to a recent report from the provincial Department of Finance. The local authority has directed departments and sectors to keep close tabs on growth scenarios for each quarters and remove bottlenecks, striving to complete the set growth targets.
As part of efforts to restructure and accelerate the development of its industrial and handicraft sectors, Hoa Binh province is focusing on the development of industrial parks (IPs) and industrial clusters (ICs) with synchronous infrastructure to attract strong investment.
