Breakthroughs from Integrated Connectivity and Modern “Green Industry” Mindset

Following the administrative merger, Phu Tho spans over 9,360 km2 (ranking 15th nationwide) with a population of over 4 million people, establishing it as one of Northern Vietnam’s largest development spaces. Its diverse topography—ranging from plains and low hills to plateaus—combined with a rich river system (Red, Da, and Lo Rivers), provides ideal conditions for multi-sectoral industrial and energy development.

Van Xuan Industrial Cluster (Van Xuan Commune) is ramping up efforts to attract investment.

The province’s regional connectivity system is reaching completion. The Noi Bai – Lao Cai Expressway, the Capital’s Ring Road 5, the Ho Chi Minh Highway, and various inter-regional rail and waterways have transformed Phu Tho into a vital transit hub within the Hanoi – Lao Cai – Hai Phong economic triangle. With the advantage of being “near the Capital yet possessing vast land availability,” the province is increasingly attractive to investors seeking stable and high-potential production spaces.

Evaluating the provincial development strategy, Ms. Phung Thi Kim Nga, Vice Chairwoman of the Provincial People’s Committee, affirmed: "Phu Tho remains steadfast in developing industry in depth, sustainability, and environmental friendliness. Synchronous infrastructure, a transparent investment environment, and timely support mechanisms have created favorable conditions for industry to become the province’s development pillar."

In recent years, particularly following the provincial merger, Phu Tho has consistently pursued in-depth, sustainable, and eco-friendly industrial growth. Building on a foundation of synchronously invested technical infrastructure, the investment environment has become increasingly open, and business support policies have been implemented promptly and effectively.

According to the Department of Industry and Trade’s assessment, thanks to its infrastructure advantages and appropriate investment attraction policies, the province’s industry is experiencing strong growth. The industrial production index in 2025 is estimated to increase by 26.8% compared to 2024, with manufacturing increasing by 29.3%; laptops by 32.3%; electronic components by 21.5%; animal feed by 26.3%; cement by 25.5%; and electricity production by 33.9%.

These figures accurately reflect the province’s leadership’s direction for in-depth industrial development. The average industrial growth rate in recent times has reached over 10.6% per year, higher than the national average (6.3% per year). Industry’s share in GRDP reached 41.5%, with the industrial-construction sector accounting for approximately 53%, making industry the main driving force of the economy.

Furthermore, the province has developed a large-scale industrial infrastructure system with 58 industrial parks, totaling nearly 14,500 hectares, and 67 industrial clusters, of which 45 are currently attracting investment. This is the “nucleus” for reorganizing the economic space towards a concentrated and modern direction.

According to Mr. Tran Quang Tuan, Director of the Department of Industry and Trade: "Processing, manufacturing, electronic components, steel, computers, and energy sectors have all recorded high growth, affirming the province’s increasingly powerful position on the regional industrial map."

Phu Tho is recognized as a national leader in developing supporting industries. The province currently hosts over 400 enterprises in this field, with 24 firms officially certified by the Ministry of Industry and Trade for producing items on the priority development list.

Notably, more than 70 local enterprises have successfully integrated into the global supply chains of major corporations such as Honda, Toyota, and Samsung. This achievement serves as a vital indicator of upgraded production and management capabilities. In the region, four major FDI “anchors” in the automotive and motorcycle sectors—Toyota Vietnam, Honda Vietnam, Daewoo Bus, and Piaggio—act as industrial flagships, disseminating technology, standards, and partnership opportunities to domestic firms. Local companies like Cuu Long, Vidaco, CNCTECH Thang Long, and Thien Thanh are progressively ascending to Tier-1 supplier status, helping to increase localization rates, reduce import dependency, and enhance product value-add.

Workers at BanDai Vietnam Co., Ltd. (Left Bank of Da River Industrial Park, Hoa Binh Ward) on the production line.

The province’s industrial development is focused on a new context with a clear vision centered on three pillars: Green Industry, Circular Industry, and High Technology.

Mr. Tran Quang Tuan further noted: "In the coming years, the province intends to prioritize development along key economic corridors associated with high-tech manufacturing, supporting industries, logistics, and clean energy. Our goal is to achieve an industrial GRDP growth rate of 12% per year, with industry’s share of GRDP stabilizing at 41.5%."

Accordingly, the province aims to focus on developing modern, high-productivity, and high-quality industries, making Phu Tho a major industrial center of the country in the automotive, electronics, digital technology, and high-tech industries.

To achieve this goal, the province will concentrate on the northern corridor for import-export, mechanical engineering, electronic components, and multimodal logistics. The central corridor will prioritize supporting industries, automotive parts, agricultural and forestry product processing, and new materials. The eastern corridor will develop high-tech industries, software, and electronic equipment, while the southern corridor will focus on green industries, renewable energy, and recycling.

With its advantageous geoeconomic location, vast development space, complete infrastructure, large-scale industrial zones and clusters, and clear development strategy, Phu Tho is undergoing a strong transformation, gradually integrating deeply into the global economy and affirming its role as a new industrial center in the North.

Hong Trung