Hung Yen's private economy: From strong growth to sustainable breakthrough

After merging with Thai Binh province, the new Hung Yen province now has over 31,000 enterprises (the former Hung Yen had nearly 17,500, while the former Thai Binh had over 13,500). This represents a significant leap, affirming the private sector's role in the province's economy and creating a robust force of private enterprises to drive economic development. In the first six months of 2025, the province recorded 1,160 new enterprises, representing a 15% year-on-year increase, with a total registered capital of 17 trillion VND.

Mr. Nguyen Huu Nghia, Secretary of the Hung Yen Provincial Party Committee, and the Thai Ambassador to Vietnam at the opening ceremony of Go! Hung Yen supermarket.

According to statistics from Hung Yen province, the budget revenue in September was estimated at 3.669 trillion VND, bringing the total state budget revenue for the first nine months of 2025 in the province to an estimated 70.625 trillion VND, an increase of 82.18% compared to the same period last year and reaching 127.47% of the annual plan.

The Political Report of Hung Yen province indicates that the average annual growth rate of the province's Gross Regional Domestic Product (GRDP) from 2021 to 2025 is 9.17%, higher than the average of 8.28% from 2016 to 2020, with the private economy playing a significant role.

Private enterprises in Hung Yen currently operate across a wide range of industries, including processing and manufacturing (concentrated in industrial zones), trade and services, agriculture, forestry, and fisheries (developed based on local strengths), as well as real estate, tourism, and logistics.

A highlight of Hung Yen's private economy is its 64 craft villages, which house over 18,487 production and business establishments, including 18,164 production households, 288 enterprises, 17 cooperatives, and 18 cooperative groups. These establishments provide employment for more than 45,000 workers. These craft villages not only preserve traditional cultural values but also become highlights in tourism development, generating additional income for residents.

Prominent enterprises leading the general development

Hoa Phat Group is one of the largest private enterprises in Hung Yen. In 2023, its subsidiaries contributed 1.290 trillion VND to the budget, accounting for about 8.4% of the total budget revenue from private enterprises in the province. In 2024, five subsidiaries of the Group were honored at the conference, which recognized exemplary taxpayers. Hoa Phat has invested in developing the Pho Noi A Industrial Park, spanning 600 hectares, which has achieved a 98% occupancy rate and attracted nearly 1.236 billion USD in capital in the first eight months of 2025.

Hoa Phat approved for expansion of Pho Noi A Industrial Park by an additional 92.5 hectares.

Additionally, Tien Hung Joint Stock Company (Hoang Hoa Tham commune) has grown into a large enterprise from a small garment factory with over 1,500 workers at its inception. In 2024, the company contributed over 26 billion VND to the budget, provided regular employment for nearly 4,000 workers, and allocated hundreds of millions of VND for social welfare activities.

Besides domestic enterprises, FDI companies such as Lotes Vietnam, Molex, Nitto, Toto, and Canon have had a positive impact, introducing modern technology and management, and establishing connections with local private enterprises.

Small and medium-sized enterprises (SMEs) also make significant contributions to the overall achievements. Phu Vinh Industrial Production Co., Ltd. (Lac Dao) has invested in automated production lines, resulting in a 20-30% increase in efficiency and a 40% reduction in electricity costs. Vietnam FAGO Agricultural Development Technology Co., Ltd. (Pho Hien) exemplifies the trend of applying high technology in agriculture.

Despite considerable achievements, private enterprises still face certain barriers. Administrative procedures related to land, business startup, and licensing remain cumbersome. Additionally, private enterprises face difficulties in accessing capital and endure prolonged waiting periods, especially small and medium enterprises, which struggle to access bank credit and face high interest rates. Concurrently, limitations in human resources, particularly engineers and business managers, pose significant challenges for enterprises.

In reality, in the first six months of 2025, although 1,160 new enterprises were established, about 600 enterprises in the province dissolved or temporarily ceased operations, indicating a low survival rate.

New momentum from Resolution 68-NQ/TW

Resolution 68-NQ/TW by the Politburo (dated May 4, 2025) is considered a crucial "key" for the private economy to break through. Hung Yen province quickly implemented Plan No. 434-KH/TU to execute this resolution, setting clear objectives and specific solutions with a focus on key areas and results.

Mr. Nguyen Quang Vinh, Vice President of VCCI, presents the VCCI banner to the Executive Committee of the Hung Yen Business Association for the 2021-2026 term.

According to the resolution's objectives, with a transparent "from the root" orientation, Hung Yen focuses on reducing the processing time for investment, land, and licensing documents by 30%-40 %. The rate of timely procedure resolution reaches 98.5%, with many procedures shortened from 15 days to 5-7 working days.

One of the first highlights in implementing Resolution 68 is the redesign of administrative processes to better serve businesses. Hung Yen identifies That Administrative reform is not just about reducing paperwork, but also about changing the service mindset. Applying digital technology to quickly and transparently handle investment, business registration, land, environment, planning management, and site clearance, facilitating easier land access for businesses. "Shifting from pre-check to post-check" aims to reduce hassles for businesses. Initiatives such as "Business Coffee" and the "Government-Business Dialogue Forum" at the provincial level are regularly organized, allowing entrepreneurs to promptly resolve issues directly.

Synchronizing Resolution 68 with strategies, Hung Yen sets the goal: By 2030, to have over 25,000 efficient enterprises; Establish at least five large-scale private enterprises with regional competitiveness in supporting industries, logistics, and food technology; Increase the private sector's contribution to over 60% of the province's GRDP; Achieve an average annual growth rate of about 13% in state budget revenue from the private economic sector from 2025 to 2030...

The merger with Thai Binh creates a scale effect. By combining 31,000 enterprises with double the development space, the potential linkage between Hung Yen's industry and Thai Binh's coastal economy will provide private enterprises with more opportunities to expand their markets and access global value chains.

The development strategy for Hung Yen's private economy has outlined several concise solutions. First, focus on reducing administrative procedures, especially in land access—the biggest barrier currently. Second, improve the financial support system by expanding funding sources for small and medium-sized enterprises, prioritizing those innovating in technology and creativity. Third, invest in enhancing the quality of human resources, especially in technology, automation, and modern business management. Fourth, support small and medium-sized enterprises in their digital transformation by applying high technology to enhance productivity and competitiveness. Fifth, strengthen connections between enterprises, develop joint ventures to create domestic and international value chains.

Mr. Nguyen Khac Than, Chairman of the Hung Yen People's Committee, chairs the meeting of the Standing Committee of the Provincial Party Committee to discuss accelerating site clearance for key projects, with a focus on resolving difficulties faced by enterprises.

Hung Yen's private economy has demonstrated dynamism, high adaptability, and great development potential. With Resolution 68-NQ/TW, the merger creating a new space, along with preferential policies from the provincial government, the private economic sector is fully equipped to become the "key" to unlocking a bright future for Hung Yen - a medium-sized province on the northern economic map with ambitions to become a modern, dynamic industrial hub in the region.

Expo to showcase OCOP products for export at Grand World Square in Vinhomes Ocean Park 3, Hung Yen Jointly organised by the Ministry of Industry and Trade (MoIT), the Ministry of Agriculture and Rural Development (MARD), and the Vietnam Cooperative Alliance, VIETNAM OCOPEX ...

Prime Minister receives General Director of the Trump Organisation’s Vietnam project WVR/VNA - On March 18, in Hanoi, Prime Minister Pham Minh Chinh urged increased US investments in Vietnam during a reception for Charles James Boyd ...

Hung Yen seeks for investment cooperation with Chinese localities A delegation from the province of Hung Yen led by Nguyen Huu Nghia, member of the Party Central Committee and Secretary of the provincial Party ...

Trump International Hung Yen hoped to boost local rapid, sustainable development: Prime Minister Trump International Hung Yen is expected to help drive rapid and sustainable development for the northern province of Hung Yen and Vietnam as a whole ...

The new Hung Yen: A dynamic land in the Red River Delta and opportunities for strategic Investors On July 1st, Hung Yen and Thai Binh provinces officially merged into one, under the new name of Hung Yen. This merger marks a strategic ...