Hung Yen builds momentum for double-digit growth with strong H1 performance

Hung Yen builds momentum for double-digit growth with strong H1 performance

Strong industrial output, rising investment and robust trade propelled Hung Yen into Vietnam's top five fastest-growing localities in the first half of 2026, reinforcing confidence in the province's double-digit growth outlook.

Accordingly, the Northern province posted regional GDP growth of 10.7 per cent in the first half (H1) of 2026, outperforming its growth target and ranking among Vietnam's five fastest-growing localities.

Industry, investment, trade and exports remained the key drivers of the province's economic expansion.

Despite persistent uncertainties in the global and domestic economy, Hung Yen maintained strong growth momentum in H1 of 2026. The province's regional GDP was estimated at $5.69 billion, up 10.7 per cent on-year, exceeding the planned growth target and placing Hung Yen among the country's five fastest-growing localities.

Infrastructure and urban development continue to expand Hung Yen's growth potential. Photo: Quynh Nga

Growth remained resilient throughout the first half. The province’s regional GDP expanded by 10.6 per cent in the first quarter (Q1), surpassing the 10 per cent target, before accelerating to 10.81 per cent in Q2, above the projected 10.6 per cent.

The steady performance suggests the province has moved beyond recovery and entered a more sustainable growth trajectory, strengthening prospects for achieving double-digit growth this year.

The strong performance was underpinned by multiple growth engines, with industry continuing to play the leading role.

Industrial output rose 14.2 per cent, contributing 6.35 percentage points to overall regional GDP growth, while the construction sector also expanded 14.2 per cent, adding another 1.16 percentage points.

Combined industrial and construction production approximated $12.7 billion, up 14.6 per cent from a year earlier. Industrial production alone rose 14.8 per cent, exceeding the growth target, while the Index of Industrial Production (IIP) climbed 15.1 per cent.

The manufacturing sector was supported not only by the expansion of existing businesses but also by continued improvements in industrial infrastructure.

During H1, Hung Yen established Tan Dan Industrial Park and Industrial Park No.08 (first phase), approved two new industrial clusters, and adjusted the planning of 20 existing industrial clusters.

The province also continued working with ministries and central agencies to complete the proposal for the Hung Yen Free Economic Zone, which is expected to become a new growth pole and strengthen the province's competitiveness in attracting investment.

To support long-term growth, Hung Yen accelerated planning and resource preparation. The provincial master planning has been revised, while the 2021-2030 housing development programme and social housing development plan have been approved.

Authorities have also finalised a list of land plots for auction to facilitate new ventures.

Meanwhile, a Steering Committee for Key Projects for the 2026-2030 period has been established to address obstructions in administrative procedures, land clearance and project implementation, helping accelerate major infrastructure developments.

Public investment remained a key pillar of growth. Provincial authorities maintained weekly and monthly reviews of public investment disbursement while accelerating project preparation, expediting land clearance and addressing long-delayed projects.

Several major infrastructure projects either broke ground or gathered pace during the period, further strengthening the province's industrial and service capacity.

Industrial expansion also generated strong spillover effects across the service sector. Service output reached $2.3 billion in H1, up 9 per cent on-year, while total retail sales of goods and consumer services climbed 17.1 per cent to $5.9 billion.

Transport, warehousing and logistics continued to expand, with total revenue exceeding $581 million, up 17.3 per cent. Freight transport alone increased by more than 20 per cent, reflecting rising demand for the movement of raw materials and finished goods to support manufacturing activities.

External trade also maintained robust momentum. The province total import-export value reached approximately $12.3 billion in the first half, up 14.4 per cent on-year. Exports increased 12.1 per cent to $6.45 billion, while imports rose 17 per cent to $5.85 billion, highlighting the continued expansion of Hung Yen's manufacturing base and its deeper integration into global supply chains.

Alongside strong economic performance, the province continued to improve economic governance.

Local authorities developed detailed growth plans early in the year, assigning clear responsibilities to departments and localities while closely monitoring implementation progress.

At the same time, Hung Yen stepped up investment promotion, improved the business environment and removed obstacles facing enterprises, enabling the private sector to expand production and contribute more significantly to economic growth.

Budget revenue, investment attraction and newly established businesses all posted positive results, providing additional resources for development.

The province also continued advancing social development, strengthening social welfare, improving education and healthcare services, and encouraging science, technology, innovation and digital transformation.

The newly reorganised two-tier local government system has operated smoothly following administrative restructuring, while ongoing administrative reforms have enhanced governance efficiency and created a more favourable business environment.

National defence, security and social order remained stable, providing a solid foundation for sustainable economic development.

Industrial production continued to drive Hung Yen's economic growth in H1/2026

With first-half growth outperforming expectations, Hung Yen is well positioned to achieve its full-year regional GDP growth target of 11-12 per cent.

During the rest of 2026, the province will continue expanding industrial development space, accelerating the establishment of Hung Yen Free Economic Zone, investing in transport and urban infrastructure, speeding up public investment disbursement, attracting large-scale and high-tech projects, and encouraging digital transformation and innovation.

These priorities are expected to create new momentum for growth, enabling Hung Yen to achieve its 2026 economic targets while reinforcing its position as one of northern Vietnam's leading industrial and economic hubs.

VIR