A Prime Destination for Japanese Investors

With its strategic geographic location, increasingly modernized transport infrastructure, high-quality human resources, and a transparent investment environment, Phu Tho Province is emerging as a top destination for Japanese enterprises amid the global restructuring of supply chains. This marks a pivotal step toward establishing Phu Tho as a new growth pole in the northern economic region.

ICONe electric motorbike production at the Phu Tho factory.

The Mark of Japanese Investors in Phu Tho

A prime example of Japanese business confidence in Vietnam’s investment climate is Honda Vietnam (HVN). In late June 2025, the company celebrated the rollout of its 40 millionth motorbike—an important milestone in nearly 30 years of operations.

From its first plant in former Vinh Phuc Province with an annual capacity of 500,000 units, Honda Vietnam has expanded to three modern factories with a combined capacity of 2.75 million units per year. In the 2025 fiscal year (April 1, 2024 – March 31, 2025), HVN produced 2.3 million motorbikes—up 10% year-on-year. In addition to the domestic market, Honda Vietnam continues to strengthen exports of its “Made in Vietnam” products to more than 23 countries and territories.

In a recent meeting with Ms. Sayaka Hattori, General Director of Honda Vietnam, Mr. Tran Duy Dong, Chairman of the Phu Tho People’s Committee, affirmed: “Enterprises investing in Phu Tho are regarded as citizens of the province; the success of the business community is also the success of the locality.” He stressed that Phu Tho is committed to standing alongside enterprises, always ready to listen, support, and promptly resolve difficulties during the investment and business process—including for Honda Vietnam.

A Strongly Improved Investment Environment

Recognizing Japan as a strategic investor, Phu Tho Province has implemented various effective coordination mechanisms, such as establishing a dedicated task force to support Honda Vietnam in implementing emission reduction initiatives, promoting investment policy dialogues, and actively assisting enterprises in resolving challenges and advancing new projects with Japanese partners such as Sojitz Group and suppliers within the Canon and Yamaha value chains.

Phu Tho has rolled out a series of breakthrough measures to improve its investment and business environment. These include forming a Special Task Force, launching a hotline, and operating the Investment Promotion and Business Support Center to provide timely and effective investor assistance. The province also hosts regular “Business Coffee” dialogues to proactively address enterprise concerns and difficulties.

Efforts to reform administrative procedures have been significantly enhanced, with online public services reaching a coverage rate of 85.6%, and over 99% of administrative procedures resolved on time each year. Special emphasis is placed on developing inter-regional transport infrastructure, with priority investment in strategic roads connecting industrial zones, tourist destinations, and raw material areas to the national transportation network.

Enhancing Appeal Amid a New Wave of FDI

Phu Tho Province is currently drawing strong interest from Japanese enterprises in high value-added sectors such as electronic components, precision engineering, supporting industries, and high-tech food processing. Modern industrial parks—including Trung Ha, Phu Ninh, Tam Nong, Thang Long Vinh Phuc, and Ba Thien II—are being methodically planned and equipped with synchronized infrastructure, opening up vast potential for international investors.

In addition, Phu Tho offers outstanding incentive policies: tax exemptions and reductions, workforce training support, investment in technical infrastructure within industrial zones and clusters, and the promotion of digital government and service-oriented administration to accompany businesses from the early stages of investment through to operation.

Through consistent and comprehensive efforts, Phu Tho is steadily strengthening the trust of Japanese corporations. The growing presence of businesses from the Land of the Rising Sun stands as testament to a stable, transparent, and competitive investment environment. Phu Tho—a rising destination for the new generation of FDI—welcomes its Japanese partners to cooperate, grow, and shape the future together.

Le Minh