(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.
Once a mountainous province facing many challenges, Hoa Binh has, after more than a decade of implementing the national target programme on new-style rural area development, emerged as a bright spot in Vietnam’s northern midland and mountainous region. In the first quarter of 2025, the province recorded positive results, paving the way for Hoa Binh to enter a phase of accelerated growth with a proactive and confident mindset.
Hoa Binh province is steadily advancing its agricultural sector through the adoption of high-tech solutions, seen as a sustainable path for long-term development.
The steering committee for key projects of Hoa Binh province convened on May 14 to assess the progress of major ongoing developments
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.
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