Aspiration to “turn into a dragon” fueled by the merger of three provinces

The merger of Phu Tho, Vinh Phuc, and Hoa Binh provinces into the new Phu Tho province has created an expansive economic development space, paving the way for this region to “turn into a dragon” by unlocking breakthroughs in investment attraction and industrial growth. This strategic decision not only optimizes resources and enhances investment efficiency but also accelerates industrial development, offering favorable conditions for enterprises to scale up production.

Thang Long Vinh Phuc Industrial Park currently has 46 investors leasing land and factories, covering 147.1 hectares—approximately 91% of the total area.

A picture of a high-potential industrial park

According to the Management Board of Industrial Parks in the new Phu Tho province, there are currently 58 planned industrial parks (IPs) covering more than 14,055 hectares. Among these, 16 out of 28 designated parks have been established and are operational, 4 are under construction, and 8 are undergoing site clearance.

Notably, of the 16 operating parks, the former Vinh Phuc province accounts for 9, including Khai Quang, Binh Xuyen I, Binh Xuyen II, Kim Hoa, Ba Thien I, Ba Thien II, Son Loi, Tam Duong II (Area A), and Thang Long 3. The former Hoa Binh province contributes 3 parks: Luong Son, Bo Trai Song Da, and Mong Hoa. The former Phu Tho province has 4 parks: Thuy Van, Trung Ha, Phu Ha, and Cam Khe.

As of the end of June 2025, the industrial parks had attracted 818 investment projects, including 507 foreign direct investment (FDI) projects totaling over USD 9.707 billion and 311 domestic direct investment (DDI) projects with a total capital of more than VND 53,043 billion. These numbers not only underscore the attractiveness of the newly merged province but also highlight its remarkable growth potential. The industrial parks have created jobs for nearly 210,000 workers, significantly contributing to social security and the local economy.

Jahwa Vina Co., Ltd., located in Khai Quang Industrial Park, is a 100% Korean-owned enterprise that manufactures electronic components for mobile phones, computers, TVs, refrigerators, air conditioners, and automobiles.

To further boost investment and industrial growth, the Provincial Industrial Park Management Board has advised the Provincial Party Committee and the People’s Committee to issue numerous directives aimed at enhancing state management efficiency. Key obstacles in planning and developing industrial parks have been addressed, and technical infrastructure has been synchronously invested in. Administrative reforms and digital transformation have been promoted, along with innovations in investment promotion, particularly on-site investor engagement.

Thanks to these efforts, in the first half of 2025 alone, the new Phu Tho province approved and adjusted capital for 58 FDI projects worth a total of USD 500 million and 46 DDI projects totaling more than VND 11,370 billion.

Notably, the former Hoa Binh province attracted several large-scale projects, including the Da Phuc Agricultural Production and Food Processing Project (VND 7,500 billion), the Lac Thinh Agricultural Production and Animal Feed Project (VND 7,000 billion), and the expansion project for a resort, mineral bath, entertainment area, and bottled mineral water production (VND 1,995 billion). Meanwhile, the former Phu Tho province attracted the Viet Tri Golf Course Project with a total investment of VND 1,004 billion.

Exedy Vietnam Co., Ltd., in Khai Quang Industrial Park, is a fully foreign-invested company specializing in the production of clutches for two-wheeled vehicles, with automobile clutches as its main product.

Challenges and solutions for sustainable development

Despite these advantages, the province still faces several challenges in attracting investment. Legal inconsistencies in industrial park regulations, overlaps among specialized laws, and prolonged issues with compensation and site clearance remain significant bottlenecks. Moreover, improving the quality of human resources and social security policies for workers continues to be a pressing need.

Mr. Hoang Long Bien, Head of the Management Board of Industrial Parks of Phu Tho province, stated that in pursuit of sustainable development, the province now prioritizes attracting high-tech projects, including those in semiconductors, clean energy, new materials, and environmentally friendly technologies. Infrastructure systems inside and outside industrial parks are being continuously upgraded to meet demands for power, water, telecommunications, and environmental protection.

Young Poong Electronics Vina Co., Ltd. (YPE Vina), located in Binh Xuyen II Industrial Park, specializes in the production of electronic components.

Mr. Kenta Kawanabe, General Director of Thang Long Vinh Phuc Industrial Park Co., Ltd., shared, "To date, we have 46 investors leasing 147.1 hectares of land and factory space, accounting for about 91%. Most of our tenants are from Japan, with others from Taiwan, Hong Kong, and Vietnam."

Mr. Kazuki Hayashi, General Director of Exedy Vietnam Co., Ltd., emphasized, "Phu Tho province is conveniently located near Noi Bai International Airport, offering significant advantages in logistics and workforce mobility. This makes it highly attractive to investors. Japanese enterprises are very satisfied with the local conditions and are increasing their investments. We also maintain a close relationship with local authorities, who are responsive to our concerns and committed to supporting us."

At Toyota Vietnam, robotic arms are used for precise, efficient welding of car bodies, reducing manual labor and minimizing exposure to hazardous environments.

Recommendations and development orientation

To continue attracting high-tech and agricultural technology projects, the Provincial Industrial Park Management Board has proposed that the Provincial People’s Committee submit policy and support mechanisms for approval by the Provincial People’s Council. These policies aim to enhance leadership in industrial park development, promote communication campaigns, and mobilize public support for compensation and site clearance.

Additionally, the province is working to develop mechanisms and incentives for infrastructure investment, establish criteria for screening investment projects, and create standards for selecting investors to develop and operate industrial park infrastructure.

The Management Board also recommends that relevant departments and sectors strengthen state oversight in areas such as natural resources, environmental protection, construction, labor, and trade. In particular, solutions are needed to develop the labor market, meet the province’s growing industrial workforce demands, promote supporting and high-tech industries, and ensure a stable electricity supply for industrial parks.

Ba Thien 2 Industrial Park—a strategic hub for investment attraction.

With proactive, flexible, and effective economic governance, along with a strong commitment to a favorable and sustainable investment environment, Phu Tho province is seizing a golden opportunity to emerge as a standout destination on Vietnam’s investment map.

Ngoc Thang