Location of the Municipality of Húnaþing vestra
Hvammstangi is an important service center for the surrounding area. It is a regional provider of education and it has been an important trading center since 1846. The town has a growing tourism and administration industry. The fishing industry (providing mainly shrimp) is also very important to the town's economy. The town also owns the largest textile factory in Iceland. The town is also home to the Icelandic Seal Center.
Hvammstangi has basketball team kormákur karfa who compete in the 3.Deild Karla the lowest division of Icelandic basketball
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