A boost from the provincial market.

Hoa Binh's total retail sales of goods in the first quarter of 2025 reached VND 5,828 billion, an increase of 24.7% compared to the same period last year. Along with this, there was over VND 1,000 billion in revenue from accommodation and food services, and VND 626 billion from transportation, all recording double-digit growth. This not only reflects the strong recovery of consumer spending but also re-establishes the position of the service sector in the growth structure: services increased by 5.91%, ranking second after industry and construction, and is one of the three main drivers contributing to the province's GRDP growth of 12.76% in the first quarter, ranking second nationwide.

Vi Hoa Binh Supermarket (Hoa Binh City) - where consumer spending remains strong in Q1/2025.

Service flow after the Lunar New Year holiday.

After the Lunar New Year, the Hoa Binh market did not experience the usual stagnation. On the contrary, consumer spending in the province seemed to maintain its momentum. "In each product group, the market's warmth is evident: food and beverages consumed nearly 2,000 billion VND, an increase of 21.9%; household goods increased by more than 18%; wood and construction materials increased by 25.87%. Notably, gasoline and oil – a key indicator of transportation and production – increased by more than 42%," said Mr. Duong Quoc Thang, Deputy Director of the Department of Industry and Trade.

On national highways, transportation services also recorded double-digit growth. First-quarter revenue reached 627 billion VND, with passenger transport increasing by 29.2% and freight transport by 17.9%. Food and accommodation services – two indicators often sensitive to tourism developments – also "revived". In the first quarter, accommodation revenue reached 113 billion VND, an increase of nearly 20%; food and beverage services reached 896 billion VND, an increase of nearly 24%. These figures come not only from a few large hotels in the city center, but also from restaurants, budget eateries, and guesthouses – small "cells" that are contributing to the lifeblood of the province's service industry.

Only the "other services" group saw a decline of over 15%, primarily due to the slowdown in the real estate market following the provincial merger announcement, which significantly impacted brokerage and land-related services. However, viewed in the overall context, this is only a temporary dip – not enough to significantly weaken the overall momentum of the entire industry.

When the market's inherent strength is awakened

"A prosperous Tet season is the first catalyst. The Tet holiday of the Year of the Snake 2025 lasted nearly ten days, with favorable weather and bustling crowds, creating a strong impetus for a series of industries that had stagnated in previous years. The festive atmosphere was spread throughout the localities: from the Muong Bi Opening Ceremony Festival in Tan Lac to the Tien Pagoda Festival in Lac Thuy, and the newly opened cable car connecting Tien Pagoda and Huong Pagoda, all of which combined to make food, accommodation, transportation, and tourism services all 'get into gear' early," shared the Deputy Director of the Department of Industry and Trade.

But that surge in consumer spending wasn't just a temporary seasonal effect. Behind the surge in purchasing power was the openness of flexible fiscal and monetary policies. Gasoline prices continuously fell in March, resulting in a consumer price index increase of only 1.21% in the first quarter – a low and stable increase. Reduced operating costs and relatively stable prices created a sense of security for both consumers and businesses.

Simultaneously, the banking system in the province injected over 44,000 billion VND in credit into the market, including nearly 20,000 billion VND in short-term loans to meet the revolving capital needs in production and trade. Non-performing loans across the province remained below 2%, indicating a stable monetary market and creating favorable conditions for the recovery of the service sector without being hampered by financial pressure.

According to the Deputy Director of the Department of Industry and Trade, another key factor is "internal resilience." Hoa Binh does not have grandiose shopping malls or large-scale tourist cities, but it has a sustainable domestic consumer market – where small eateries, grocery stores, rest stops, guesthouses, motorbike dealerships, and building material shops remain strong, and even grow, despite difficulties. These small links, connected by the practical needs of the people, have formed a flexible economic network that adapts well to fluctuations.

The market doesn't need dramatic breakthroughs, but rather steady and stable growth. In the first three months of the year, trade and services in Hoa Binh have achieved just that: not booming, but steady; not creating huge waves, but nurturing a steady flow of growth.

And perhaps, it is this stability and resilience that forms the crucial foundation for the 12.76% economic growth rate – a figure that comes not only from investment or production, but also from every small act of consumption, every morning market session, every quiet journey of goods along the mountain roads.

Minh Vu

Source: https://baohoabinh.com.vn/12/200035/Cu-huych-tu-thi-truong-tr111ng-tinh.htm