Affirming Phu Tho’s Role as a Regional Growth Engine Through Strong First-Half Performance

More than one year after the establishment of its new administrative structure, Phu Tho Province has not only maintained socio-economic stability but also achieved remarkable economic momentum. The impressive results recorded during the first six months of 2026 reflect the province’s strategic vision and decisive leadership by the Provincial Party Committee, People’s Council, and People’s Committee, reinforcing Phu Tho’s position as a key growth engine of Vietnam’s Northern Midlands and Mountainous Region.

Strong Fundamentals Drive Economic Growth

Despite continued uncertainties in the global and domestic economies, including supply chain disruptions and rising logistics costs, Phu Tho has remained one of the country’s strongest-performing localities.

Central and provincial leaders press the button to commence construction of the Meiko Yen Quang Semiconductor Manufacturing Plant at Yen Quang Industrial Park.

According to the latest data released by the General Statistics Office under the Ministry of Finance, Phu Tho’s Gross Regional Domestic Product (GRDP) expanded by 9.15% in the first quarter, 10.95% in the second quarter, and 10.18% during the first half of 2026.

This performance significantly exceeded the national average growth rate of 8.18%, placing Phu Tho 7th among the country’s 34 provinces and centrally governed cities, maintaining its leading position in the Northern Midlands and Mountainous Region. It also became one of only nine localities nationwide to achieve double-digit economic growth, surpassing both the target assigned by the Government and the provincial growth scenario.

The province’s growth structure remained balanced and sustainable, supported by three major pillars. The industry and construction sector expanded by 14.9%, services grew by 7.6%, while agriculture, forestry, and fisheries increased by 3.6%.

Electronic component manufacturing continues to be one of the key drivers of industrial growth.

According to Tran Van Thach, Head of the Provincial Statistics Office, high-tech manufacturing industries made the most significant contribution to this impressive performance. Key products all recorded strong year-on-year growth, including 18.91 million laptop computers, up 43.9%; electronic component manufacturing services valued at VND 179.11 trillion, up 36.1%; 915,530 motorcycles, up 9.9%; and 4.72 billion kWh of electricity, representing a 19.2% increase. These figures demonstrate the growing technological capability of local enterprises and their increasing integration into global supply chains.

Investment Momentum and Sound Public Finance

One of the clearest indicators of investor confidence has been the strong inflow of investment capital.

During the first half of 2026, disbursed foreign direct investment (FDI) reached nearly USD 1.8 billion, equivalent to 110.2% of the annual target and nearly five times higher than the same period last year.

Among the most notable investments were BYD’s electronics manufacturing expansion project from China and the Meiko Yen Quang Semiconductor Manufacturing Plant from Japan, each valued at approximately USD 500 million. These projects focus on electronics, semiconductors, and advanced manufacturing, aligning with the province’s strategy to develop modern industry, enhance economic restructuring, create high-quality employment, and deepen participation in global value chains.

This investment surge has been supported by Phu Tho’s renewed investment promotion strategy, targeting high-quality markets including Europe, the United States, Australia, South Korea, China, and the Middle East.

Entrepreneurship has also flourished, with more than 2,800 newly registered enterprises established during the first six months of the year, alongside 655 businesses resuming operations, bringing the total number of active enterprises in the province to over 43,000.

These internal and external resources have strengthened the province’s fiscal position. As of June 30, state budget revenue totaled VND 34.88 trillion, representing a 19.2% increase year-on-year, 25.2% above the provincial growth scenario, and 60.1% of the annual target. Domestic revenue alone reached VND 31.64 trillion, up 21.5% over the same period last year.

Meanwhile, public investment disbursement remained among the fastest nationwide, placing Phu Tho within the country’s leading group.

Administrative “Green Lanes” Unlock Investment Bottlenecks

Behind these impressive economic indicators lies one of the province’s most significant reforms—comprehensive administrative reform and institutional improvement.

A notable breakthrough has been the pilot implementation of the “Green Lane” mechanism under Decision No. 968/QD-UBND, issued by the Chairman of the Provincial People’s Committee on March 27, 2026. The initiative introduced two accelerated administrative procedures: the “24-Hour Green Lane” and the "50% Green Lane."

Administrative reform creates a more favourable investment environment and strengthens business confidence in Phu Tho.

The Green Lane mechanism has significantly reduced administrative bottlenecks related to legal procedures, land acquisition, compensation, and site clearance for major investment projects, further strengthening investor confidence.

By the end of June 2026, a total of 76 projects had benefited from the Green Lane mechanism, including five administrative procedures processed under the 24-hour mechanism and 18 procedures under the 50% fast-track mechanism.

The province has also successfully implemented its weekly “Business Coffee” programme every Friday morning, providing a direct platform for dialogue between provincial leaders and the business community. This initiative has helped build a transparent, dynamic, and business-friendly investment environment.

According to the Vietnam Chamber of Commerce and Industry (VCCI), Phu Tho ranked among the top five provinces nationwide in economic governance quality in 2025, ranked second nationally for land accessibility, and remained among the country’s leading localities in proactive governance and business support.

Artist’s impression of Nam Binh Xuyen Green Park Industrial Park, a smart and environmentally friendly industrial park developed by CNC Industrial Group.

Maintaining Momentum While Addressing Future Challenges

The province acknowledges that sustaining double-digit growth throughout the remainder of 2026 will require continued effort and determination.

However, as one of the first localities to complete the adjustment of its provincial master plan and formulate quarterly growth scenarios, Phu Tho has established a strong foundation for long-term development.

The Provincial People’s Committee has translated the spirit of the 14th National Party Congress into an action programme consisting of 35 targets and 144 specific tasks, providing a comprehensive roadmap for implementation.

Looking ahead, alongside continuing socio-economic development measures, Phu Tho has proposed that the Central Government accelerate several strategic transport infrastructure projects with regional significance, including the Ring Road No. 5 – Hanoi Capital Region, the Viet Tri–Hoa Binh Expressway, and the expansion of the Hoa Lac–Hoa Binh Expressway to four to six lanes.

Continuous improvements in transport infrastructure are helping strengthen the province’s investment environment.

As Phu Tho reaches the midpoint of 2026, its strong socio-economic performance reflects the determination, innovation, and leadership of the provincial Party Committee, authorities, business community, and people. These achievements provide a solid foundation for unlocking new growth drivers and accelerating the province’s development as a dynamic regional growth centre in the years ahead.

Dinh Vu