(HBO) – In compliance with the Party and State’s policies in recent years, the northern mountainous province of Hoa Binh has issued a number of mechanisms and policies to fuel the private economy.
They included procedures on investing in commercial housing, public-private partnership projects, incentives for cultivation and fish farming on Hoa Binh lake, agricultural and rural development, and many others that help improve the business climate.
Photo caption: the provincial public administrative centre was officially put into operation on August 1, 2017
The province has so far recorded nearly 2,800 businesses with a total registered capital of 29,382,092 billion VND, 82.5 percent of them are operating stably. Among 277 cooperatives, 155 are still working. There are 449 investment projects in the locality, including 29 foreign-invested ones worth 468 million USD and 420 domestic ones valued at 62,257 billion VND.
The domestic and foreign capital accounted for 67 percent of the total social investment. In 2016, the private economy with foreign direct investment (FDI) made up 48.8 percent of the gross regional domestic product and 63.24 percent of the local manufacturing value, attracting roughly 90.6 percent of the workforce.
However, the growth of the private economy tends to falter, especially those with FDI. Most of private firms have small and medium size, limited technological, governance and financial capacity, and weak competitiveness.
Based on the Party and State’s orientations, the province has directed concerned agencies to devise specific measures to develop the private sector into an important driving force of the local economy. The locality strives to have more than 4,000 firms and cooperatives by 2020 whose operation efficiency doubles that of 2015. Their contributions are expected to account for nearly 50 percent, 60 percent, 70 percent of the provincial gross regional development product by 2020, 2025, and 2030, respectively.
For the 2016-2020 period, corporate investment is expected to be equivalent to more than half of the total social investment while the labour output will increase nearly 8 percent annually on average.
In order to improve the business climate, the provincial authorities have directed specific measures to improve the efficiency of administrative reform, hold dialogues with firms and investors to clear their difficulties and provide them with all possible support, and encourage all economic sectors to engage in production and trade.
Maximizing local potential and advantages, Yen Tri commune in Yen Thuy district is actively promoting the cultivation of medicinal herbs and turning medicinal herbs into One Commune - One Product (OCOP) products.
Situated at the gateway to the Northwest, Hoa Binh province has a population of over 900,000, including about 540,000 of working age. It is home to 6,000 businesses and production facilities, providing employment for over 100,000 workers. The remaining workforce is engaged in informal jobs, works in enterprises outside the province, or contributes to agro-forestry-fisheries. Additionally, around 3,000 workers are employed abroad.
The Hoa Binh provincial People's Committee has issued Decision No. 2767/QD-UBND announcing the rankings of departments, agencies, districts and Hoa Binh city in the Public Administration Reform Index (PAR) and the Satisfaction Index of Public Administration Services (SIPAS) in 2024.
The cultivation of Dam Xanh fish (Bangana lemassoni), a unique fish species, has seen remarkable growth in Mai Chau district, thanks to its high economic value and effectiveness. Initially concentrated in Van Mai commune, farming has now extended to four other communes, namely Mai Hich, Mai Ha, Chieng Chau, and Son Thuy. These areas benefit from pristine underground water flowing from mountain crevices, providing ideal conditions for raising this specialty fish.
In 2024, the total state budget revenue of Hoa Binh Province is estimated at approximately VND 6,930 billion, achieving 183% of the Government’s target, 126% of the target assigned by the Provincial People's Council, and 145% compared to the same period last year.
In 2024, Hoa Binh province has shown signs of improvement in attracting investment and developing enterprises.
