Following the planned merger of Hung Yen and Thai Binh provinces, the newly unified province - expected to retain the name Hung Yen - will officially become the smallest in Vietnam by area. But in a surprising twist, its economy will rank among the top 15 in the country.

Under the government’s administrative reorganization plan, Vietnam will reduce the number of provincial-level administrative units to 28 provinces and 6 centrally governed cities.

Hung Yen and Thai Binh, both located in the Red River Delta, are slated to merge with the new provincial government headquartered in the current Hung Yen location.

With a combined land area of just 2,514.8 km², the new Hung Yen province will hold the title of the smallest in Vietnam. Yet, its economic power will place it 12th nationwide in terms of Gross Regional Domestic Product (GRDP).

A compact province with large economic influence

Based on preliminary data from the General Statistics Office:

Hung Yen’s GRDP in 2023 was 146.3 trillion VND (~5.9 billion USD)
Thai Binh’s GRDP was approximately 119.2 trillion VND (~4.8 billion USD)
Combined GRDP exceeds 265 trillion VND (~10.7 billion USD)

This makes the new province a significant contributor to Vietnam’s national economy despite its modest size.

Leading in tax revenue contribution

In 2023: Hung Yen’s domestic revenue reached 28.75 trillion VND; Thai Binh’s domestic revenue was 10.19 trillion VND

The combined total of nearly 39 trillion VND places the new province 7th nationally in state budget contributions - further solidifying its fiscal strength.

Sharp contrast in per capita income

Hung Yen consistently reports high GRDP per capita, reaching 112.5 million VND/person/year in 2023 - almost double the national average and far higher than Thai Binh’s 63.3 million VND/person/year. This disparity highlights the economic imbalance between the two regions, and signals the potential for greater development synergy post-merger.

Foreign investment and trade on the rise

While Hung Yen attracted 720.5 million USD in foreign direct investment (FDI) in 2023, Thai Binh significantly outperformed expectations with nearly 2.91 billion USD. Together, the two provinces amassed over 3.63 billion USD in FDI last year - enough to position the new province among Vietnam’s top FDI destinations if the trend continues.

On exports, 2024 figures show:

Hung Yen: nearly 5.6 billion USD, up 19.1% year-on-year
Thai Binh: 2.84 billion USD, up 10.5% year-on-year

In Q1 2025 alone:

Hung Yen exported 1.37 billion USD worth of goods
Thai Binh reached 681 million USD

These figures confirm strong external trade momentum and underline the new province’s potential as a hub for both investment and exports.

Tam An