Affirming the role as a key driver of economic growth

Despite facing numerous challenges in 2024 and early 2025 due to global economic volatility, Phu Tho’s industrial sector has solidified its role as a primary driver of economic growth, significantly contributing to the province’s overall development.

Workers sew export garments at Hoa Sen 2 Garment Company Limited, Doan Hung town, Doan Hung district.

Maintaining Growth Momentum

In 2024, industrial production encountered considerable difficulties due to global economic recovery challenges, escalating geopolitical tensions, and intensified strategic competition among major economies. Domestically, enterprises struggled with production and business obstacles. Phu Tho was no exception, as key industries experienced downturns, exacerbated by the impact of Storm No. 3 (Yagi) in September, which caused widespread flooding and disruptions.

To address these challenges, provincial authorities took proactive measures by closely following national directives, reviewing and resolving business difficulties, and assessing key industrial projects. Efforts to enhance the investment environment and streamline administrative procedures yielded positive results. In 2024, total social investment capital reached VND 50.4 trillion, up 12.3% year-on-year. The province attracted 32 new foreign direct investment (FDI) projects with a total registered capital of USD 270.5 million, boosting production capacity and value-added contributions. Notably, Phu Tho’s Provincial Competitiveness Index (PCI) improved by 14 places, positioning it among the most dynamic, business-friendly localities.

BYD Vietnam Electronics Co., Ltd., located in Phu Ha Industrial Park, exemplifies the province’s industrial success. Specializing in manufacturing electronic circuit boards for computers and tablets, the company employs over 11,000 workers, with an import-export turnover of USD 4.5 billion in 2024. Mr. Leo Su, the company’s director, highlighted Phu Tho’s attractiveness for investors, praising its improved administrative procedures and business-friendly policies.

Thanks to these efforts, Phu Tho’s industrial sector maintained impressive growth, with the Industrial Production Index (IIP) rising by 16.4% in 2024. The processing and manufacturing sector saw a 42.1% surge, ranking among the fastest-growing nationwide. Key contributors included electronic product manufacturing, electrical equipment production (up over 400%), pharmaceuticals (up 37.9%), and chemicals (up 9.2%).

Export activity also saw robust performance, with total trade turnover estimated at USD 30.25 billion. Exports reached USD 15.45 billion, marking a 39.6% increase, keeping Phu Tho among the top 10 provinces contributing to national trade. Electronic products and electrical equipment dominated exports, totaling USD 13.7 billion—up 45.9% year-on-year—reinforcing the province’s position in global supply chains.

Building on this momentum, Phu Tho’s industrial sector began 2025 on a strong note. The January IIP grew by 10.4% year-on-year, while total export value exceeded USD 1.1 billion, a 14.2% increase. These positive indicators set the stage for continued growth.

Ceramic tile production at TaKao Granite Joint Stock Company, meeting domestic and export demand.

Efforts to Achieve the Target

Phu Tho’s industrial sector has shown positive growth; however, traditional industries such as mining, textiles, wood processing, ceramic tiles, and cement continue to decline, with no clear signs of recovery. Growth remains concentrated mainly in emerging industries, while the sector still faces significant challenges, including dependence on foreign direct investment (FDI), a shortage of skilled labor, and rising raw material costs. Additionally, delays in site clearance for large-scale projects have hindered the development of industrial parks and clusters.

Looking ahead to 2025, Phu Tho aims to accelerate industrial development by attracting investment in high-tech sectors, supporting small and medium-sized enterprises, and fostering digital transformation in production. At the same time, the province will prioritize workforce development to meet the growing demands of economic expansion.

Nguyen Viet Dung, Director of the Department of Industry and Trade, emphasized that the department will continue working closely with relevant agencies to drive improvements in the investment and business environment. Efforts will focus on expediting infrastructure development in industrial clusters, streamlining investment procedures, and attracting secondary investors. The province is also committed to enhancing logistics infrastructure to better support production and trade activities.

In parallel, Phu Tho will step up trade promotion efforts to expand export markets, strengthen the province’s brand reputation, and implement comprehensive marketing strategies. A flexible combination of traditional and digital trade channels will be leveraged to maximize market reach. Additionally, authorities will focus on implementing government-approved business support policies to help enterprises—particularly those in key manufacturing and processing industries—overcome operational challenges. By accelerating the deployment of new industrial projects, Phu Tho aims to boost production capacity, expand export markets, and drive sustainable economic growth.

Trinh Ha