Digital Transformation Breakthrough – A Government that Serves

One of Hue’s most remarkable highlights in administrative reform has been its strong push for digital transformation. The city has rolled out online public services at scale, enabling citizens and businesses to access administrative services swiftly, transparently, and conveniently.

In recent years, Hue has taken decisive steps toward building an e-government and advancing toward a digital government. The inter-sectoral data-sharing system and national database integration now allow businesses to easily access planning information, digital maps, and legal data—creating optimal conditions for investment and business operations.

Notably, through the Hue-S platform and its smart city service, the municipal government has received and addressed more than 160,000 citizen and business feedback submissions, achieving a 95% resolution rate and over 90% satisfaction rate.

To ensure the smooth operation of the two-tier local government model and enhance convenience for citizens and enterprises, city leaders have directly inspected infrastructure, organizational structures, and administrative processing workflows during the trial operation of the two-tier government model in newly merged wards and communes.

Wards such as Huong An (merged from An Hoa, Huong So, and the former Huong An) and An Cuu (merged from An Cuu, An Dong, and An Tay) have proactively consolidated administrative structures, upgraded facilities, and piloted new case-handling procedures.

Less than a month after piloting the two-tier government model, Hue became the first locality in Viet Nam to achieve 100% end-to-end online public service delivery — from provincial departments to ward and commune levels. This is not merely a technical leap, but a transformation in governance thinking: modern, transparent, and centered on citizen convenience.

To address pending and overdue land administration cases on both the city’s Administrative Procedures Information System and the National Public Service Portal, the Hue People’s Committee has set up three task forces to guide and assist local authorities in resolving outstanding land-related administrative procedures.

According to Mr. Nguyen Van Phuong, former Chairman of Hue City People’s Committee, the core objective of the two-tier local government model is to ensure proximity to citizens through a new operating principle: “proactive service.” To achieve this, the city is streamlining procedures, enhancing transparency, strengthening soft skills training for officials, expanding online service delivery, and developing the Intelligent Operations Center (IOC).

The city has partnered with the postal service to establish nine guidance and document-receiving points beyond administrative boundaries, assisting citizens with online applications and home delivery of results. Looking ahead, Hue plans to pilot mobile citizen service points or mobile public services in remote areas or for vulnerable groups such as the elderly and persons with disabilities — ensuring that no one is left behind.

Hue is now pushing forward with science, technology, innovation, and digital transformation breakthroughs, in line with Resolution No. 57-NQ/TW. The city provides technical and policy support for potential enterprises to develop into science and technology firms, aims to establish 130 digital enterprises (2020–2025), and promotes innovation and intellectual property creation. As a result, Hue consistently ranks among the top five provinces and cities nationwide in the Digital Transformation Index.

Driving Investment Momentum

Thanks to relentless administrative reform and efforts to foster a favorable business environment, Hue has maintained leading national positions across major governance indicators. The city has topped the Provincial Governance and Public Administration Performance Index (PAPI) twice and has remained in the Top 10 nationwide for the Provincial Competitiveness Index (PCI) for four consecutive years.

In 2024, Hue’s Public Administration Reform (PAR) Index ranked 7th nationwide, up 10 places from 2023. Its PCI score of 71.13 placed it 6th nationwide, reflecting strong recognition from the business community for its governance quality and reform progress.

To sustain reform momentum and support businesses, the city has implemented a range of support policies — including subsidies for digital signatures, e-invoice costs, workspace and accounting expenses, technology adoption, as well as direct consulting on production, finance, and market access. It has also promoted sales through livestreaming and e-commerce platforms.

The city has also strengthened the effectiveness of its four investment project monitoring task forces, each led by a Vice Chairman of the People’s Committee, to oversee, expedite, and troubleshoot project implementation — minimizing the administrative burden on enterprises. Regular dialogues and consultations with the business community further ensure timely problem-solving.

According to Ms. Nguyen Thi Bich Thao, Director of Hue City’s Center for Investment Promotion, Trade, and Business Support, the private sector is increasingly recognized as a vital growth driver. “Hue is shifting from a ‘management and licensing’ approach to a ‘partnership and service’ approach,” she said, emphasizing that the city now prioritizes skills training, trade promotion, and tailored support for investors and businesses.

In a volatile economic context, the Center has rolled out a wide range of initiatives to help local enterprises stabilize production, access markets, and grow sustainably. A small but effective initiative is the creation of Zalo support groups for investment projects, allowing real-time resolution of investor concerns.

“We believe that in Hue’s broader development journey, every business—large or small—plays a crucial role. Therefore, our guiding principle is to support enterprises fairly, practically, and sustainably,” Ms. Thao affirmed.

Realizing the “Billion-Dollar” Vision

Through decisive efforts to improve its business climate and stimulate economic growth, Hue continues to attract major domestic and foreign investors—strengthening the city’s economic resilience.

In the first nine months of 2025, Hue’s economy grew by 9.06%, well above the same period last year. The city welcomed nearly five million tourists, with revenues exceeding VND 9.6 trillion; the industry-construction sector expanded by 14.5–15%; exports hit a record USD 1.13 billion, up 25.6% year-on-year; and public investment disbursement reached 74.3% of the annual plan, far surpassing the national average.

The city approved 40 new investment projects and adjusted 18 existing ones, with total registered capital exceeding VND 30 trillion, including nine FDI projects. Major “anchor” projects choosing Hue include:

• Kim Long Motor’s automobile and bus manufacturing and assembly plant (nearly VND 3 trillion investment);
• Kanglongda medical gloves factory, now operating stably with rising output;
• FPT Education Complex in An Van Duong Urban Area (over VND 432 billion);
• Phu Bai Brewery expansion, increasing capacity from 410 million liters to 600 million liters per year (VND 3.4 trillion investment), officially operational in September 2025;
• Eon Industry Vietnam helmet factory, Phase 1, creating over 800 jobs;
• Dat Phuong Group’s ultra-white glass factory (VND 2 trillion);
• BRG Group’s golf course, now open as a new high-end tourism product.

As a result, the city’s budget revenue reached an estimated VND 10.65 trillion in nine months, up 22.1% from 2024.

For the 2025–2030 period, Hue targets an average GRDP growth rate of at least 10% per year, aiming for per-capita GRDP above USD 5,000 by 2030. The city also seeks to reaffirm its role as a distinctive center of culture and tourism while advancing its smart-city agenda. Three breakthrough strategies have been identified:

• Refining investment attraction mechanisms and policies;
• Developing high-quality human resources;
• Investing in modern, synchronized infrastructure integrated with heritage-driven urban and digital transformation advantages.
• Particular emphasis is placed on developing the digital economy, high-tech industries, and the marine economy, expanding regional and international cooperation, and fostering an open, transparent, and competitive investment environment.

Mr. Tran Van My, Chairman of the Hue City Business Association, highlighted that with its deep-water port (Chan May–Lang Co), Phu Bai International Airport, top-tier education and healthcare centers, and unique heritage potential, Hue has vast room to grow its tourism, services, and green industry sectors.

“The business community in Hue has consistently received strong attention and partnership from the city government,” he noted, “enabling enterprises to restructure production, explore new markets, accelerate digital transformation, and embrace green and sustainable models.” These efforts, he added, are helping shape an innovation-driven, knowledge-based economy and a high-quality service ecosystem—laying the foundation for sustainable, long-term growth.

With a proactive and service-oriented government committed to standing beside businesses, Hue is building a solid launchpad for breakthrough growth, worthy of its position as the central urban hub of Viet Nam’s key economic region.