Businesses Join Forces to Achieve Double-Digit Growth

With Phu Tho’s GRDP growing by 10.18% in the first six months of 2026, the province has established an important foundation for achieving its double-digit growth target for the full year. This result reflects the efforts of the entire business community to expand production, invest in technology, seek new markets and participate more deeply in supply chains, creating new drivers of growth.

Businesses as a Driver of Growth

In the first six months of 2026, Phu Tho’s economy maintained positive growth momentum. GRDP increased by 10.18% year on year, ranking first in the Northern Midlands and Mountainous region. Industry and construction continued to serve as the leading growth drivers, while trade and services recovered strongly and agriculture maintained its role as a key pillar of the economy.

The business community made a direct contribution to this performance by becoming increasingly involved in processing and manufacturing, trade and services, construction, logistics, high-tech agriculture and digital transformation. Some businesses have gradually established production and distribution linkages and become part of the supply chains of major domestic and international corporations.

In particular, the FDI sector continues to be one of the province’s key growth drivers. FDI enterprises have maintained stable production, expanded investment, increased output and contributed to industrial growth, exports, state budget revenue and job creation.

Motorcycle production at Polaris Vietnam Co., Ltd. (Ba Thien 2 Industrial Park).

Matthew Justin Kantrud, General Director of Polaris Vietnam Co., Ltd. (Ba Thien 2 Industrial Park), said that from the beginning of the year, the company had developed a plan to increase production beyond the previous year’s level. By the end of July, many export orders had already exceeded their projected schedules.

“Improvements in investment procedures, industrial park infrastructure and regular dialogue mechanisms between the authorities and businesses have given us greater confidence in expanding production,” Matthew said.

By mid-July, the province had attracted 67 FDI projects with total registered capital of more than USD1.3 billion, along with 95 domestic investment projects with total registered capital exceeding VND33 trillion. The continued increase in newly established businesses indicates growing confidence among the business community in the province’s investment environment.

From Production Lines to New Growth Drivers

The Index of Industrial Production (IIP) increased by 20.4% year on year in July. In the first seven months, IIP rose by 24.3%, with processing and manufacturing increasing by 25.18%. Notably, the production of electronic products, computers and optical products increased by 33.93%.

Importantly, growth has not only resulted from higher output at existing factories but also from newly invested projects coming into operation, particularly in the electronic components sector. Among private enterprises, their commitment to the province’s growth target is also reflected in concrete investment decisions.

Automated production line at CNCTech Thang Long Joint Stock Company (Thang Long Vinh Phuc Industrial Park).

Nguyen Thanh Trung, General Director of CNCTech Thang Long Joint Stock Company, said the company currently supplies a number of mechanical components to FDI enterprises in the area. Previously, most orders were relatively low-value, but customers have recently required the company to become more deeply involved in design and quality control.

“To retain customers, we have to invest in machinery, management software and engineering personnel. This is a significant investment, but if we do not change, we will be eliminated from the supply chain. Business growth today must be based on productivity and technology rather than simply expanding scale,” Trung emphasized.

This is also the direction that Phu Tho is pursuing. The province prioritizes attracting high-tech, supporting-industry, electronics, telecommunications, software, artificial intelligence and logistics projects, while encouraging existing businesses to expand their operations.

In an increasingly open economy, businesses must also continually adapt to changes in global markets. Many enterprises have proactively diversified their markets, customers and export products while stepping up investment in technology, automation, digital transformation and green transformation.

Synergy from a Favorable Business Environment

An important aspect of Phu Tho’s growth story is the way the authorities are shifting from a management-oriented approach toward accompanying businesses and creating favorable conditions for their development. The province continues to maintain the “Business Coffee” model, business support task forces and “green channel” mechanisms for administrative procedures to address difficulties, improve competitiveness and attract investment.

Ngo Van Thai, Director of Vinh Nguyen Vinh Phuc Waterway Transport Co., Ltd., said: “Not every difficulty can be resolved immediately, but businesses have channels through which to raise their concerns, while relevant agencies proactively engage with them to find solutions. For businesses, time is a cost. If procedures are shortened, we can get goods to market sooner and save a significant amount of money.”

According to Thai, after the province expanded its development space and continued investing in transport routes and connectivity, logistics businesses have been considering expanding warehouses, increasing their vehicle fleets and recruiting additional workers.

Alongside improvements to the business environment, the province is promoting public investment and completing infrastructure projects to expand development space for businesses. By the end of July, public investment disbursement had reached more than 40% of the plan assigned by the Prime Minister. In the remaining months of the year, the province will continue focusing on removing bottlenecks, accelerating infrastructure projects and supporting production and business projects so that they can become operational as soon as possible.

The double-digit growth target is therefore not merely a task for state management agencies. It is a shared challenge for the entire economy, with businesses serving as the direct actors transforming policies, resources and development initiatives into products, revenue, jobs and added value.

Quang Nam