Hung Yen speeds up reform to boost investment appeal

Hung Yen speeds up reform to boost investment appeal

Hung Yen province is accelerating administrative reform and improving public governance to reduce business costs, strengthen investor confidence, and enhance the efficiency of investment attraction as the province enters a new phase of economic growth.

Alongside geographical advantages, land availability, and market potential, governance quality is increasingly shaping investment decisions. Policy transparency, access to information, administrative processing times, and the effectiveness of investor support all have a direct bearing on business costs and project implementation.

For Hung Yen – a province lying in the heart of the Red River delta, some 60km southeast of Hanoi – these requirements are becoming more pressing as its industrial base expands and demand for investment resources increases.

Improving the business environment is therefore not simply an administrative task, but an important condition for sustaining growth and attracting higher-quality investment.

Photo: Tat Dat

This direction is reflected in Decision No.1875/QD-UBND dated June 15, issued by Hung Yen People’s Committee, approving a scheme to improve the Public Administration Reform Index (PAR Index), Satisfaction Index of Public Administrative Services (SIPAS) and Provincial Governance and Public Administration Performance Index for the 2026-2030 period.

The province aims to rank among the country’s top 10 localities in these indices by 2030, while building a professional, modern and transparent administration that places citizens and businesses at the centre of public service delivery.

However, the 2026 PAR Index self-assessment indicates that further advancements are needed. According to Report No.770/BC-SNV dated October 23, issued by the Department of Home Affairs, Hung Yen had provisionally scored 61.8 out of 68 points as of September 30, with 17 criteria and sub-criteria had yet to achieve their maximum scores.

In response, Hung Yen People’s Committee has directed departments and agencies to review underperforming criteria, implement corrective measures and complete supporting documentation for the official year-end assessment. The province aims to place its 2026 PAR Index and SIPAS among the country’s top 10.

Specific targets have also been established for the fourth quarter of 2026. The province aims to prevent any additional overdue administrative procedure files, while ensuring that all feedback and petitions within its jurisdiction are addressed, answered and publicly reported.

It also plans to provide fully online public services for all eligible administrative procedures and raise the proportion of fully online applications to at least 80 per cent.

At least 85 per cent of administrative procedures involving financial obligations are expected to support online payments, with online transactions accounting for at least 70 per cent of all transactions subject to fees and charges.

Meanwhile, the rate of fully electronic processing of documents and work files has reached 94.1 per cent. The province is continuing to improve data infrastructure and connectivity, while bringing shared information systems into operation.

The results recorded in the first nine months of 2026 highlight the continued expansion of Hung Yen’s economy and the growing importance of improving the investment environment.

Industrial Park No.5 in Hung Yen province. Photo: Quynh Nga

According to the provincial statistics office, Hung Yen’s regional GDP reached approximately $8.75 billion in the first nine months of 2026, representing an on-year growth of 11.2 per cent. This exceeded the growth scenario of 11.1 per cent and ranked seventh among 34 provinces and cities.

Industry and construction expanded by 14.8 per cent, remaining the largest contributor to overall economic growth.

At current prices, regional GDP was estimated at $10.36 billion. Industry and construction accounted for around 55.6 per cent of the economic structure, with industry alone representing nearly 45.2 per cent, highlighting the sector’s central role in the provincial economy.

Investment attraction also maintained positive momentum. In the first nine months of 2026, the province enticed approximately $2.72 billion in domestic investment and nearly $1.8 billion in foreign direct investment (FDI).

The province recorded 52 newly registered foreign-invested projects with total registered capital touching $713.7 million, while 74 existing projects registered additional capital of over $1 billion. The substantial volume of additional investment reflects continued expansion demand among foreign investors already operating in the province.

The expanding investment base is placing greater demands on the quality of business support throughout project implementation. Hung Yen is paying close attention to reviewing the progress of projects that have received investment policy approval, those registering additional capital, and projects currently under investment promotion.

Hung Yen’s industrial park network provides serviced industrial land and synchronised infrastructure. Photo: Quynh Nga

The province is also working to resolve obstacles relating to planning, land, site clearance, infrastructure and investment procedures, while seeking to renew investment promotion and investor support activities to increase total investment attraction in 2026 compared with the previous year.

Alongside the Provincial Competitiveness Index and PAR Index, improvements in the Provincial Green Index are also being linked to selective investment attraction, stronger environmental management, and support for businesses transitioning towards greener production.

The Department and District Competitiveness Index provides an additional mechanism for assessing the governance quality of individual departments and localities from the business perspective. It helps identify administrative bottlenecks, cumbersome procedures, and prolonged processing times, providing a basis for targeted improvements.

Infrastructure development and public investment disbursement are another priority in strengthening the province’s investment appeal.

As of September 30, the total public investment plan, following a 5 per cent saving from local budget resources, stood at approximately $2.26 billion, of which about $2.24 billion had been allocated.

Disbursement approximated $1.13 billion, of which disbursement from the 2026 capital plan alone amounted to nearly $1.05 billion, equivalent to 60.3 per cent of the plan assigned by the Prime Minister.

These coordinated efforts will help strengthen business confidence, attract strategic investors, improve the quality of investment inflows, and underpin the province’s sustainable growth ambitions for 2026-2030.

VIR