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.

Hoa Binh maintains stable economic growth in four months

The economic landscape of Hoa Binh province continued its impressive upward trajectory through the first four months of 2025, according to a recent report from the provincial Department of Finance. The local authority has directed departments and sectors to keep close tabs on growth scenarios for each quarters and remove bottlenecks, striving to complete the set growth targets.

Hoa Binh prioritises infrastructure investment to propel industrial, handicraft sectors

As part of efforts to restructure and accelerate the development of its industrial and handicraft sectors, Hoa Binh province is focusing on the development of industrial parks (IPs) and industrial clusters (ICs) with synchronous infrastructure to attract strong investment.

Opportunities to expand development space

In recent times, Hoa Binh province has shown its determination and high sense of responsibility in seriously implementing the directives of the Party Central Committee and its Politburo and Secretariat regarding the streamlining of the political system’s organisational apparatus and the development of a two-level local administration system. The aim is to build a commune-level administration that is close to the people, attentive to their needs, and capable of quickly responding to the demands of both businesses and citizens, while also opening up new development spaces.

Hoa Binh advances sustainable forestry with FSC certification

Hoa Binh city has marked a significant step in sustainable forest management as nearly 1,450 hectares of its plantation forests have been granted Forest Stewardship Council (FSC) certification, an international standard required to access major wood markets such as the EU, the US, and Japan.

Work begins on Xuan Thien Hoa Binh lime and light powder factory

Construction on the Xuan Thien Hoa Binh lime and light powder factory in Yen Bong commune, Lac Thuy district - a key project of Hoa Binh province - started on April 24.

Hoa Binh city builds value chains to boost agricultural products

Hoa Binh city is transitioning to modern and sustainable agriculture by leveraging its natural advantages to efficiently develop crop cultivation and animal husbandry. The city is applying scientific and technical advancements to farming, processing, and distribution while expanding export markets, significantly increasing production value and incomes for farmers.