Hòa Phát Group’s steel products serve domestic demand and are exported to 40 countries and territories. — VNA/VNS Photos

HƯNG YÊN — Amid strong investment inflows and the rise of a dynamic private business sector, Hưng Yên Province is increasingly positioning the private sector as the foundation of its industrialisation and modernisation strategy.

In the first seven months of 2025, the province, following its merger with Thái Bình, attracted 216 new projects worth over US$6 billion, including 128 domestic projects valued at $4.6 billion and 88 foreign-invested projects worth $1.5 billion.

The number of private businesses has surged over the past decade from just over 2,170 in 2011 to 18,346 by the end of 2024, with registered capital totalling VNĐ236.9 trillion ($9 billion). After the merger, Hưng Yên now counts nearly 27,660 active enterprises.

The province’s economy expanded by 9 per cent in the first half of 2025, led by industry and construction (up 10.7 per cent) followed by trade and services (up 6.6 per cent).

Officials say most of this growth comes from domestic private firms.

Hòa Phát Group is one of the largest enterprises in Hưng Yên, consistently ranking among the top private sector taxpayers in the province.

In 2024, the group’s after-tax profit reached 120 per cent of its target, surging 77 per cent year-on-year to VNĐ12 trillion. Its after-tax profit margin on net revenue stood at 8.7 per cent.

This year, Hòa Phát Group has set a revenue target of VNĐ170 trillion, up 21 per cent from 2024. Its after-tax profit is projected at VNĐ15 trillion, a 24.7 per cent increase year-on-year.

The group currently employs nearly 33,000 workers and contributes to the State budget in 26 cities and provinces nationwide.

Meanwhile Thuận Đức Joint Stock Company has shown remarkable growth from its early days as a recycled plastic pellet manufacturer. It is now one of Việt Nam’s leading producers and distributors of polypropylene (PP) packaging.

Many of the company's products, including plastic pellets, PP packaging and PP shopping bags, now meet the stringent requirements of demanding markets like Japan, the US and the EU, and are exported to more than 40 countries worldwide.

The firm currently employs nearly 2,000 workers.

Hưng Yên’s business climate has improved significantly, reflected in its 2024 Provincial Competitiveness Index score of 70.18 points, ranking tenth nationwide and up two places from 2023. Authorities credit reforms in transparency, land clearance and investor support.

However, labour shortages remain a pressing challenge, particularly for skilled workers.

Local companies offer incentives to attract workers.

Tanaka Precision Việt Nam in Thăng Long II Industrial Park is short of skilled staff despite extensive recruitment campaigns.

Hưng Phát Manufacturing and Investment JSC in Minh Đức Industrial Park faces similar difficulties, even for quality control positions, despite offering competitive pay and benefits.

Trần Hải Âu, director of P&P Mechanical Company at Phố Nối A Industrial Park, said his small firm still lacks 10–15 per cent of its unskilled and skilled labour needs, affecting order fulfilment and limiting production expansion.

He said that worker shortages not only slow production but also risk contract penalties, harm reputations with foreign partners and could hinder production shifts if they become widespread.

To address the gap, the province is strengthening ties between enterprises and vocational schools to deliver training aligned with employers’ needs, aiming to secure a sustainable, high-quality workforce.

Chairwoman of the Hưng Yên Business Association Nguyễn Thị Thanh Hà said provincial leaders have worked to improve the investment climate by removing business obstacles, holding regular forums to hear feedback and implementing tax and credit support policies.

She urged the province to keep addressing bottlenecks, cut legal risks and unofficial costs, and create the most favourable environment for confident, sustainable investment, while calling on businesses to set clear, long-term strategies.

In supporting entrepreneurs and fostering the private economic sector as a driver of growth, the provincial People’s Committee leadership confirmed at a meeting with local businesses in February that Hưng Yên will always facilitate enterprise development and respect business interests.

Investors and businesses in the province are encouraged to adopt advanced technologies, keep pace with scientific and managerial innovations, improve productivity, increase profits, enhance competitiveness and make greater contributions to the State budget.

The provincial Party aims for the private sector to become a key economic driver by 2030, leading in technology, innovation and digital transformation.

From 2025–2030, the sector is expected to grow about 11 per cent annually, contribute 65–67 per cent of GRDP and raise State budget revenue by around 13 per cent per year. — VNS