The Long Hung wood production, trade and services factory in Thanh Cao commune, Luong Son district, which became operational at the beginning of 2025, contributes significantly to job creation, economic growth, and economic restructuring.

According to the provincial Statistics Office, the gross regional domestic product (GRDP) in Q1 rose by 12.76% year-on-year. Sector-wise, agriculture, forestry, and fisheries expanded by 4.19%; industry and construction surged by 27.18%; and services up 5.91%. Meanwhile, product taxes saw a decline of 5.64%. The GRDP structure consisted of 16.5% from agriculture, forestry, and fisheries; 44.58% from industry and construction; 34.6% from services; and 4.33% from product taxes. This notable growth marks the first time in the current term that Hoa Binh has recorded such a high growth rate.

Positive momentum was observed across all economic sectors. By the end of March, provincial budget revenue was estimated at 2.35 trillion VND (91.4 million USD), equating to 114.21% of the same period last year, and fulfilling 42.11% of the Prime Minister’s assigned target and 33.19% of the provincial People's Council’s annual plan. The consumer price index rose by 1.21% year-on-year in Q1.

Investment activity also recorded an uptick, attributed to the synchronised construction of major infrastructure projects such as Hoa Binh–Moc Chau Expressway, the Hoa Binh–Hanoi regional link, and Son La Expressway. In addition, foreign-invested enterprises are accelerating the completion of construction components to begin operations in Q2.

In Q1 alone, 104 new businesses were established with a combined registered capital of approximately 800 billion VND—representing 101% of the number of newly registered firms and 20.4% of the registered capital compared to the same period last year. The province also approved 10 new investment projects and adjustments to 20 existing ones, with total registered capital exceeding 3 trillion VND. Furthermore, 31 urban infrastructure and commercial housing projects were approved through land use right auctions and investor bidding, amassing almost 11.1 trillion VND in registered capital.

These achievements lay a solid groundwork for Hoa Binh to meet its annual growth target of over 10%.

To maintain this momentum, the provincial Party Standing Committee is pushing forward with power decentralisation and administrative reforms, aiming to cut down the time needed for processing procedures in planning, construction, investment, and land use. Hoa Binh is also actively resolving bottlenecks in off-budget investment projects and aims to disburse at least 95% of its 2025 public investment capital. Other priorities include promoting trade and tourism, supporting the business community, enhancing tax collection efficiency, and working with Vietnam Electricity (EVN) on the operational mechanism for the Hoa Binh Hydropower Plant. Cultural preservation linked to tourism development, along with national defence and security, also remain high on the agenda.

Provincial Party Secretary Nguyen Phi Long has underscored the importance of advancing the province’s five strategic breakthroughs in 2025. He called for expediting the launch of key infrastructure projects. For the Hoa Lac–Hoa Binh Expressway expansion, all administrative procedures must be streamlined to enable a groundbreaking ceremony on July 1, with site clearance in Hoa Binh city targeted for completion within 90 days. For the Hoa Binh–Moc Chau Expressway section through Mai Chau and Da Bac districts, readied clearance must be handed over to the provincial transport project management board byApril 15 to facilitate construction.

The province stays committed to a principle of "unwavering, continuous effort”, with a focus on timely land clearance, resettlement, and compensation to speed up project implementation. All timelines must be strictly adhered to. Hoa Binh also intends to fast-track public investment disbursement and administrative approval procedures in 2025. Local authorities have also been instructed to prioritise social welfare and address substandard housing.

The provincial Party Secretary further urged agencies to resolve lingering issues impeding major projects, accelerate the progress of key regional transport and urban infrastructure developments, and promote the development of cultural and social facilities. Emphasis was placed on mobilising social resources to support strategic infrastructure investments. Relevant departments have been directed to urgently coordinate with central ministries to finalise investment procedures, ensuring all projects progress in accordance with directives from the provincial Party Committee, the provincial People's Committee, the Government, and the Prime Minister.