Replacing less productive crops with herbal medicines has proven to be an effective direction for many localities in Hoa Binh province.
In 2018, the Big Farm herbal cooperative leased 10 ha of mixed garden land from farmers in Men village, Yen Hoa commune (Da Bac district) to start growing several types of herbal plants.
Yen Tri commune in Yen Thuy district is one of the "bright spots" in herbal medicine development. Chairman of the communal People’s Committee Bui Phi Diep said that when embarking on the new-style rural area building scheme, the first challenge for the local authorities was how to increase the income for local residents. He added that the orientation of switching to herbal medicine cultivation on areas of less productive crops and mixed gardens aimed for this goal.
To achieve the highest effectiveness, the local authority selected high-value herbal plants and precious indigenous medicinal plants, and encourages residents to cultivate these as replacements. At the same time, it has proposed the district collaborate with herbal medicine centres and pharmaceutical companies to develop a production linkage model.
Cultivating medicinal plants generates economic value approximately three times higher than rice cultivation, helping to improve the incomes of many households in Yen Tri. The area dedicated to herbal plant cultivation in the commune has expanded to about 35 ha, attracting 45 households in the Yen Tri Agricultural Cooperative, and 100 other households to join.
Besides Yen Tri, the cultivation and development of medicinal plants have been implemented in many localities. So far, Hoa Binh has approximately 2,350 ha of medicinal plants, including 197.6 ha where the plants are intercropped on forest land.
Some of the main medicinal plants including lemongrass, solanum procumbens, and celastrus hindsii, with yearly average outputs of 11,000 tonnes, 1,200 tonnes and 1,620 tonnes, respectively. Additionally, there are various naturally harvested medicinal plants, such as cordyceps, passionflower, Paris polyphylla smith, and anoectochilus.
In recent years, the provincial authorities have issued many mechanisms and policies to encourage investment in planting and processing of medicinal plants. Projects and socio-economic development programmes in ethnic minority and mountainous areas and the "One Commune, One Product" programme have helped promote and encourage economic sectors to invest in the cultivation and and processing of medicinal plants.
Currently, the province has 13 facilities and enterprises engaged in the purchasing and preliminary processing of medicinal plants, along with 10 small-scale processing establishments run by enterprises and households. These efforts have initially created stable outlets for medicinal plants in the province.
According to the leadership of the provincial Department of Agriculture and Rural Development, in the coming time, based on natural conditions, market demand, economic value, and export potential, the locality will develop a list of prioritised medicinal plants for development. Additionally, it will establish mechanisms, policies, and support plans for the cultivation, development, and harvesting of medicinal plants in special-use forests, protective forests, and production forests; as well as renting land for medicinal plant development; in line with forest management regulations and the provisions of the Land Law in 2024.
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.