Hoa Binh carves out a distinct spot on Vietnam’s new service map

5/7/2025 - 6:10:07 PM

Over the past three years, the northern mountainous province of Hoa Binh has begun redefining its position on Vietnam’s service landscape with a series of distintive commercial models, from highland night markets, pedestrian-friendly streets, to logistics centres tied to local agricultural products.

Vi Hoa Binh supermarket in Tan Thinh ward is one of the first established in Hoa Binh city, playing a key role in boosting the province’s overall retail sales.

In Q1 2025, Hoa Binh’s total retail sales and consumer service revenue reached an estimated 20.1 trillion VND (804 million USD), up 13.7% year-on-year, the highest in three years. This rebound in domestic consumption has spurred notable momentum across local trade and service sectors.

In the urban core of Hoa Binh city, a new model combining commercial and tourism streets is taking shape, with specialised shops, eateries, and beverage outlets replacing once-closed storefronts.

Transformation is also visible in rural areas. Cao Phong market, once known for small-scale, fragmented trading, now boasts dedicated One Commune, One Product (OCOP) item counters, QR code scanning points, and even cashless POS terminals. E-commerce is steadily taking root, as the province continues to operate its own digital marketplace, despite challenges related to seasonal supply and product diversity.

The province welcomed 1.65 million tourists in Q1 2025, a 5.8% rise year-on-year, generating 1.68 trillion VND in revenue. Particularly notable was the sharp rise in international visitors, reaching 230,000 arrivals, reflecting the early success of Hoa Bình’s outreach and promotional campaigns abroad.

Key programmes, such as the development of Hoa Binh Lake National Tourist Area, partnerships with Ho Chi Minh City and Hanoi, and digital transformation in travel and accommodation, have given the local service sector a powerful boost. Young entrepreneurs and ethnic communities are increasingly venturing into tourism with offerings like Muong village homestays and self-guided trekking tours.

Despite these gains, Hoa Binh still faces challenges, including a relatively small market size, limited logistics infrastructure, and underperforming e-commerce platforms. Nonetheless, the province is moving with clear intent. The local People’s Committee has released a 2025 tourism development plan and is preparing a support framework for 2026–2030, with a strong focus on digital transformation in consumption and trade.

Duong Quoc Thang, Deputy Director of the provincial Department of Industry and Trade, stressed the need for a distinctive trade network and services rooted in local identity, designed first and foremost for Hoa Binh residents, before reaching outward to visitors and broader markets.

Cooperative join promoting Hoa Binh’s clean food brand

With the motto "product quality comes first," the Ban Muong Clean Food Agricultural Cooperative in Hung Son commune, Kim Boi district, has gained consumers’ trust after nearly a year of operation. Their products, including Ban Muong Vietnamese pork sausage and ready-to-eat salt-cured chicken and pig's trotters, are gradually establishing a solid market presence, with efforts underway to complete their One Commune-One Product (OCOP) certification process.

Hoa Binh works to retain strategic investors, accelerate key projects

As large investors and projects play a crucial role in optimising local potential and advantages, Hoa Binh province has established a steering committee to promote major projects and foster progress. With strengths in agriculture, industry, and tourism, the province is positioning itself as an emerging investment destination in northern Vietnam.

Hoa Binh works to better investment climate: From bold directives to concrete action

The recent groundbreaking of a luxury eco-urban complex and cable car system in Cuoi Ha and Kim Boi communes of Kim Boi district, invested by Hoa Binh Sun Co. Ltd., is a demonstration of Hoa Binh province’s steadfast commitment to improving its investment environment. This flagship project exemplifies the province's ambition to become a leading destination for major domestic and international investors.

A new avenue opens for private sector

May 2025 marked a pivotal moment in Vietnam’s national development journey as the Politburo issued Resolution 68 on the development of the private economy. More than just a policy directive, this resolution represents a revolution in economic thinking and institutional reform, paving a promising "avenue” for the private sector’s growth.

Hoa Binh promotes industrial sustainable development

Once seen as an industrial "zero" at the time of its re-establishment in 1991 and the following years, Hoa Binh province has undergone a remarkable transformation, emerging as a dynamic industrial hub in Vietnam's Northwest gateway region.

Several communes in Lac Thuy district struggle to promote OCOP products

In Lac Thuy district, communes have been succeeded in promoting their One Commune-One Product (OCOP) products while others are still struggling to position their typical farming products in market. Some communes in the district still fail to have their products met OCOP programme’s requirements, while others have seen their certifications expired.