(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.
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.
