Phu Tho Witnesses Surge in Industrial Investment
The province of Phu Tho is currently witnessing a robust and strategically important phase of industrial expansion, a direct result of its recent provincial consolidation which included merging elements from Vinh Phuc and Hoa Binh provinces. Identifying industrial development as the single key driver of future economic growth, Phu Tho has enacted decisive steps and expedited a coordinated series of governmental measures specifically designed to radically improve the local investment environment and significantly enhance regional competitiveness.
The primary objective is to attract large-scale projects, with a particular focus on high-quality foreign direct investment (FDI). The provincial administration is prioritizing investments that feature advanced technologies, implement modern and efficient management practices, and ensure responsible, effective land use within the merged Economy.
As a direct consequence of these aggressive policies, the industrial sector has successfully maintained strong growth momentum, making essential contributions that are driving the province’s overall socioeconomic advancement. Over the initial 10 months of 2025, Phu Tho’s industrial production recorded solid, verifiable growth, unequivocally reinforcing its role as the dominant pillar of the provincial economy.
Operations across all major industrial parks remain stable, while a notable number of foreign-invested projects spanning electronic components, precision engineering, and electrical equipment have transitioned into steady commercial production, significantly boosting the industry-construction sector’s overall performance metrics. The province’s Index of Industrial Production (IIP) expanded by an impressive 26.8 per cent over 2024 figures, with the critical manufacturing sector alone rising by 29.3 per cent.
These compelling statistics underscore the province’s rapidly growing appeal to export-oriented industries and global value chain manufacturers, simultaneously creating positive and substantial spillover effects that benefit the trade, services, and logistics sectors across the entire region.
High-Tech Projects Anchor New Industrial Corridors
The province’s growth is being anchored by established multinational enterprises such as Compal, Arcadyan, BH Flex, Cammsys, and Innovation Vietnam, alongside a significant number of new projects that have recently commenced commercial operations. These new entrants, including Lioho, Asahi Intecc, Kitz, Tamron, Stepper Vision, Utivina, TechL Vina, Ssep Vietnam, Meibang, and Sunny Apparel Hoa Binh, are collectively expanding the growth potential of key manufacturing industries within Phu Tho.
A majority of the province’s major industrial products have posted strong year-on-year increases, with specific output figures showing laptop production up 32.3 per cent, electronic components rising by 21.5 per cent, animal feed up 26.3 per cent, cement expanding by 25.5 per cent, ceramic tiles increasing by 19.3 per cent, and power generation growing by 33.9 per cent. In a development emphasizing the commitment to high-tech manufacturing, the Phu Tho Industrial Parks Management Board granted approval for a new electronic components manufacturing and processing plant in Tam Duong I Industrial Park.
This major project, developed by Korean-owned Jahwa Vina Co., Ltd., involves a total investment exceeding $105 million and is scheduled to begin construction in the fourth quarter (Q4) of 2025, with operations projected to commence in the second quarter (Q2) of 2028. Once operational, this facility alone is expected to generate nearly $180 million in annual revenue, contribute $360,000 to state coffers, and create approximately 1,300 local jobs.
Jahwa Vina is representative of the prominent foreign investors actively expanding production within Phu Tho. Following the strategic administrative consolidation, Phu Tho is now specifically positioned to evolve into a central hub for supporting industries and clean energy for Vietnam’s northern midland region.
This future vision is supported by the designation of three strategic development corridors: the Viet Tri-Vinh Yen corridor, focused on electronics and high-tech equipment; the Thanh Thuy-Hoa Binh corridor, dedicated to renewable energy, agricultural processing, and ecotourism; and the Phu Ninh-Yen Lap corridor, which is being developed for battery production, automotive components, and advanced new materials.
Strategic Vision for Green and Innovation-Driven Growth
The administrative merger of the three localities has been widely noted by economists as having successfully created a new, regionally scaled structure with significantly enhanced competitiveness, effectively positioning Phu Tho as a key focal point for FDI capital flows that are currently shifting into Southeast Asia. Chairman of the Phu Tho People’s Committee, Tran Duy Dong, affirmed the provincial government’s unwavering commitment at a recent industrial development conference, emphasizing that “Industry continues to be the principal economic sector and the key driver of the province’s growth.”
He stressed the necessity for all administrative levels to be more decisive in both investment promotion efforts and in efficiently resolving operational difficulties faced by businesses. A key priority is on-site investment promotion and proactively supporting existing businesses to expand, particularly those in the high-value sectors of electronics, automobile and motorcycle manufacturing, and supporting industries.
Beyond expanding traditional industries, Phu Tho is demonstrating a clear strategic vision in transitioning towards green, high-tech, and innovation-driven growth models. The province has articulated plans to convert existing industrial parks into certified eco-industrial zones, fully aligning them with circular-economy principles, while simultaneously developing modern industrial clusters that feature advanced waste-treatment systems.
By 2030, the province has set an ambitious goal to attract $8 billion in foreign direct investment, with a commanding 70 per cent specifically earmarked for high-tech and green projects. Following the administrative consolidation, Phu Tho successfully restructured 12 industrial parks and consolidated the infrastructure of key IPs, including Phu Ham, Thuy Van, Khai Quang, and Lac Thinh, totaling a combined area of over 3,500 hectares.
By 2026, these industrial parks are expected to feature fully integrated infrastructure that meets stringent international standards across all utilities, transport, and environmental Management.
Logistics Infrastructure and Innovation Ecosystem
To further solidify its competitive position and support the ambitious industrial growth in Phu Tho, major investments are being made in logistics and transportation infrastructure. Once fully completed, the Hoa Binh-Vinh Phuc expressway is projected to significantly reduce logistics costs for manufacturers by as much as 40 per cent, substantially enhancing connectivity to major regional gateways such as Dinh Vu Port in Haiphong and Noi Bai International Airport in Hanoi.
Concurrently, the Viet Tri-Lam Thao Logistics Centre, representing a total capital investment of $240 million and involving the expertise of CJ Logistics from South Korea, is viewed as a strategic anchor link in the region’s overall supply chain development, facilitating efficient cross-border trade for Phu Tho’s expanding export industries. The province is also proactively implementing Resolution 57-NQ/TW on science, technology, and innovation, with a focused effort on establishing the Phu Tho Innovation and Startup Centre and fostering a vibrant ecosystem for incubating enterprises across high technology, smart agriculture, and tourism-services.
Chairman Tran Duy Dong reiterated the long-term strategic priority, stating, “The province consistently prioritises industrial development as part of its long-term strategy. Phu Tho gives priority to developing high-tech industrial parks to attract investment in emerging industries with high added value and environmental friendliness.”
This comprehensive strategy, encompassing infrastructure upgrades, regulatory streamlining, and a pivot towards high-tech and green industries, is already yielding strong performance in the post-merger Economy. The success demonstrates that the new governance model is working effectively, generating powerful momentum for investment attraction, productivity improvement, and higher-quality growth.
With this current trajectory, Phu Tho is moving rapidly toward its goal of becoming a preeminent regional center for industry, services, and innovation within the northern midland and mountainous region of Vietnam.
Macroeconomic Impact: A New Northern FDI Magnet and the Green Shift
The administrative merger and subsequent surge in high-tech foreign direct investment (FDI) in Phu Tho have profound implications for Vietnam’s national and regional economic structure, positioning the newly enlarged province as a critical secondary growth pole in the northern region, complementing established hubs like Hanoi and Bac Ninh. From a national Investment perspective, the successful establishment of this new, consolidated industrial corridor mitigates the risk of premature deindustrialization in the Northern Midlands and Mountainous Areas, a vulnerability identified by economists in provinces lacking sufficient trade openness and FDI.
By integrating the industrial density and skilled workforce of former Vinh Phuc industrial zones (like Binh Xuyen) with Phu Tho’s expanding land bank and strategic logistics investments, the province effectively creates an agglomeration economy of greater scale, capable of absorbing larger and more complex supply chain components from manufacturers relocating out of China or other parts of Asia. This move directly supports the government’s long-term Business strategy to attract $8 billion in FDI by 2030, with a critical 70 per cent focus on green and high-tech projects, signaling a clear shift in Investment selectivity away from purely labor-intensive industries.
The commitment to converting existing industrial parks into Eco-Industrial Zones (EIZs) and aligning with circular-economy principles is particularly significant, as it positions Phu Tho to benefit from national and international green Finance initiatives (like the UNIDO-supported EIP project) and helps future-proof its manufacturing base against increasing global environmental and carbon regulatory standards. This proactive Economy-wide green shift, backed by advanced infrastructure and a streamlined administrative apparatus, effectively enhances Phu Tho’s long-term competitiveness in the global value chain, moving it up the manufacturing curve and serving as a sustainable model for other provinces in Vietnam’s Northern Midland region.
