Activating private economic momentum

In just the first six months of 2025, Phu Tho recorded 1,878 newly registered enterprises, a surge of over 32% compared to the same period last year. Gross Regional Domestic Product (GRDP) growth reached 10.09%, ranking among the highest nationwide. These impressive figures not only lay the groundwork for driving economic momentum in a newly expanded development space following the provincial merger but also serve as concrete evidence of the province’s “resolute action” spirit in realizing the Politburo’s Resolution No. 68-NQ/TW on private economic development.

More than a central government policy, Resolution 68 is being actively translated into practice through well-defined action plans, tangible growth indicators, and the firm commitment of local authorities to improving the investment climate. With its renewed appearance following the merger, Phu Tho is emerging as a “promised land” for private enterprise development.

Three regions, one shared goal

On May 4, 2025, the Politburo issued Resolution No. 68-NQ/TW on continuing to reform mechanisms and policies to facilitate private sector growth, reaffirming that the private economy is “an important driving force in a socialist-oriented market economy.” In response, Phu Tho, Hoa Binh, and Vinh Phuc quickly released their own action plans, each with specific targets and a long-term vision to 2045.

Phu Tho has set a goal of reaching over 19,000 enterprises by 2030, with the private sector contributing 62-65% of GRDP. By 2045, it aims to have 30,000 businesses accounting for 67-70% of GRDP. The province is committed to developing highly competitive private enterprises that are technologically advanced, digitally transformed, and aligned with green growth models.

Legacy Hill Resort & Villa is a notable example of green tourism and high-end real estate development in Phu Tho.

Hoa Binh’s plan sets a goal of 7,500 private enterprises by 2030, contributing more than 55% of GRDP, and 11,300 enterprises by 2045, with a GRDP contribution of over 60%. The focus is on building strong enterprises in high-tech agriculture, ecotourism, and sustainable mineral processing.

With a head start in industrial development, Vinh Phuc aims to have around 20,000 private enterprises and 80,000 individual business households by 2030, with the private sector contributing approximately 35% of GRDP. By 2045, it targets 50,000 enterprises contributing 45% of GRDP, shaping itself into a private economic hub with a strong brand presence in northern Vietnam.

A shared hallmark of all three plans is the strategic shift from merely “encouraging” to “concretizing with targets, actions, and roadmaps.” Each locality has identified priority sectors, business development goals, and GRDP contribution benchmarks, along with support strategies such as digital transformation, institutional reform, and high-quality workforce development. These efforts are laying the groundwork for harmonized, large-scale policy integration post-merger.

Enterprise growth fuels economic acceleration

While the action plans reflect strategic alignment, the data from the first half of 2025 demonstrate tangible progress. According to the General Statistics Office, Phu Tho’s GRDP growth rate reached 10.09% following the merger, ranking ninth nationally. The industrial and construction sector expanded by 15.32%, and services grew by 8.2%, indicating a robust rebound after a period of administrative and structural adjustment.

The start-up scene has exceeded expectations. A total of 1,878 new businesses were established, a 32% year-on-year increase, alongside the reactivation of 818 dormant enterprises. Registered capital reached over VND 17,400 billion, signaling renewed investor confidence and the practical effectiveness of policy implementation.

According to Mr. Ha Trung Nguyen, Permanent Vice President of the Business Association in the former Hoa Binh region, “Resolution 68 has brought a fresh breeze to the private sector, but to truly catch the wind, we need solid “support structures”, administrative reform, access to credit, and a stronger skilled workforce. What we’re really waiting for is a unified, synchronized policy framework for the new province, something the Provincial People’s Committee is working urgently to deliver.”

Each region has shown signs of distinct breakthroughs. Data from the Phu Tho Provincial People’s Committee show that Vinh Phuc has retained its leading position in attracting foreign direct investment (FDI), with more than USD 410 million in just six months, accounting for nearly 90% of the province’s total FDI of USD 469 million post-merger. Phu Tho attracted USD 56 million, while Hoa Binh, though still modest at USD 2.7 million, excelled in domestic direct investment (DDI), securing VND 38,006 billion in registered capital thanks to large-scale ecotourism, resort, and green industry projects.

Projects like the expanded Serena Resort in Kim Boi, the new urban area in Viet Tri, and supporting industrial zones in Binh Xuyen and Phuc Yen not only channel major investment flows but also create opportunities for jobs, support services, and value chain integration. This aligns with the shared development philosophy of all three regions: Fostering a private sector that prioritizes quality, efficiency, and sustainable growth over unchecked expansion.

Despite encouraging early results, turning the private sector into the “important driving force” envisioned by Resolution 68 remains a work in progress. Gaps in enterprise scale, infrastructure, and competitiveness persist across regions. While Vinh Phuc boasts a relatively complete industrial ecosystem, many areas in the former Hoa Binh still lack production space, logistics infrastructure, and especially high-quality technical labor.

Moreover, post-merger, the three former provinces operate under different systems of policies, procedures, and incentives, posing challenges for establishing a synchronized, transparent, and consistent investment environment. Many businesses report confusion when navigating support mechanisms, preferential policies, and land-use planning.

To address this, in July 2025, the Phu Tho Provincial People’s Committee began drafting a unified action plan based on the National Assembly’s Resolution No. 202/2025/QH15 on the organization of local governments after the merger. This plan will serve as a roadmap for integrating development targets, allocating resources, streamlining administrative procedures, and eliminating the “invisible walls” between the three former provinces.

With its renewed structure, Phu Tho now possesses the space, momentum, and ambition to break through. However, for the private sector to truly emerge as a pillar of the economy, every policy commitment must be reflected in real-world actions, each simplified procedure, each barrier removed, and each opportunity opened for business.

Nguyen Yen