Hoa Binh achieved all 19 socio-economic development targets last year, surpassing plans and marking a record high in state budget revenue. The province exceeded the Prime Minister's revenue target by 87%, ranking among the top localities that surpass budget revenue projections.
In 2024, private enterprises reported strong revenues, contributing to the significant annual increase in state budget collections. Photo: The Da Hop joint Stock Company invests in the infrastructure of the Tien Tien industrial cluster in Quang Tien commune, Hoa Binh city, making a substantial contribution to the state budget.
Big challenges, great determination
The year 2024 presented significant challenges to local socio-economic management. Extreme weather conditions, including heavy damages from Typhoon Yagi, and policy changes impacted production and business activities. Many investment projects faced delays, and revenue sources declined due to tax, fee, and charge exemptions and reductions.
Internally, although the local investment environment and administrative reforms improved, the provincial competitiveness index remained low. Many unresolved obstacles in investment projects led to weak capital absorption, while the real estate market stagnated, and some sectors continued to face business and production difficulties.
The Government and National Assembly supported citizens and businesses by reducing VAT by 2% through the end of the year, extending tax deadlines, and cutting land and water surface rents. These measures reduced provincial tax revenue by approximately 628 billion VND (24.78 million USD).
Despite these challenges, the entire political system showed determination and significant efforts to meet state budget collection goals.
Exceptional achievements in state budget revenue for 2024
The provincial Tax Department implemented comprehensive measures from the beginning of last year.
The province recovered approximately 1.85 trillion VND in overdue taxes, equivalent to 73% of collectible tax arrears as of December 31, 2023. This included 250 billion VND collected through tax management measures and 1.6 trillion VND recovered via enforcement actions.
According to Vu Hong Long, Director of the provincial Tax Department, the agency prioritised supporting taxpayers, addressing challenges, and ensuring the effective implementation of resolutions aimed at facilitating business recovery and growth.
Also in 2024, the province’s state budget revenue was above 7.55 trillion VND, surpassing the central government’s target by 87% and the provincial People’s Council resolution target by 31%.
Among 17 revenue categories, 14 exceeded projections, with remarkable surpluses in areas such as land use fees (340.1%), dividends (350%), other budget revenue collection categories (328%), land and water lease fees (294.3%), and fees and charges (216.9%).
In addition, local budget revenue collection revenue amounted to over 26.96 trillion VND, up 13% year-on-year and exceeding the Government’s target for the year by 87% and the province’s by 67%. Districts such as Luong Son, Mai Chau, Lac Son, and Kim Boi achieved tax and fee collection rates significantly above their assigned targets, ranging from 145% to 158%. These outcomes reflect a positive recovery across economic sectors and set a strong foundation for further growth in 2025.
Quach Tat Liem, Vice Chairman of the provincial People’s Committee, stressed that the exceptional results played a vital role in the province's socio-economic development. As Hoa Binh approaches the final year of implementing the 17th provincial Party Congress Resolution for the 2020–2025 term, it is committed to fulfilling and exceeding state budget revenue targets.
In 2024, Hoa Binh province witnessed signs of economic recovery, particularly in investment attraction. Notably, several projects are showing good progress, indicating that the vitality of businesses is positively correlated with the overall economic recovery.
The 25th Party congress of the Lac Thuy district for the 2020-2025 term identified the development of industry, trade, and services as its top priorities to drive the shift of the economic structure towards increasing the proportion of industry and services while reducing the that of agriculture, thus contributing to creating a motivation for socio-economic development in the locality.
Hoa Binh HKK Knitting Co. Ltd., located in the Hoa Binh Left Bank Industrial Zone, employs nearly 500 local workers with an average monthly salary of 8 million VND (3,150 USD).
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.
