Bosnia and Herzegovina is probably the most liberal Muslim country in the world.
Bosnia is not a Muslim country. It's a multiethnic secular democracy - less than half of the population there is "Muslim" in any sense of the word. Being a "Muslim" in Bosnia mostly denotes an ethnic/cultural identity rather than a religious one.
Afaik you are right; things have deteriorated steadily as a result of influx of Saudi money, which was in itself a result of war in Bosnia and consequent radicalisation. Apparently seeing a hijab in the street in Bosnia before the war was nearly impossible.
I personally know a "Muslim" girl from Bosnia that hasn't got any issues with miniskirts, alcohol or free sex.
... especially the Herzegovina reigion have beautiful culture and vibrant people ...
Herzegovina is synonymous with Croatian nationalism - its population is predominantly ethnically Croat and there was an attempt to separate this bit from the rest of Bosnia to create Croatian Community of Herzeg-Bosnia as a separate "political, cultural, economic and territorial whole," on the territory of Bosnia and Herzegovina accompanied with "relocation" of other ethnic groups. Remember what happened in Mostar?