Creating new growth momentum for industry

Industry plays an important role in the socio-economic development of the province, being the “locomotive” in shifting the economic structure towards industrialization and modernization. In addition to traditional industries, the province is encouraging the development of a number of new industries, creating new growth momentum associated with qualitative changes in the growth model.

Production of electronic components and connecting cables for export at Bando Vina Co., Ltd., Thuy Van Industrial Park, Viet Tri City.

Affirming its role in the economy

The structure of industrial groups in the province has shifted towards gradually increasing the proportion of processing, manufacturing, and supporting industries and gradually reducing the proportion of the mining industry. Up to now, the processing and manufacturing industry accounts for over 90% of industrial production value, forming a number of large-scale, competitive industries such as electricity, electronics, mechanics, garments, etc.

The industry has initially linked value chains, developed in depth, and promoted application and innovation of technology. This is an important factor promoting the increase of technological value content in product value, minimizing factors affecting the environment, and improving competitiveness and industrial production value.

From 2021 to now, industrial production has continued to recover and develop rapidly, being the main driving force for the province’s growth. In the period of 2021-2023, the growth rate of industry in the province increased by more than 10%; in the first 6 months of 2024, it increased by 14.5%. The average industrial development index in the period of 2021-2023 increased by 12.6%, and in the first 6 months of 2024, it increased by 33.8%. Promotion activities and efforts to improve the investment and business environment and attract investment have been effective, marking the country as one of the priority destinations for many large investors, especially foreign enterprises.

Yida Vietnam Co., Ltd. invested in production in Song Thao Town Industrial Cluster, Cam Khe District, specializing in the production of export garments, with an average output of over 1 million products/month. Mr. Chu Wing Cheong, CEO of the company, said, “The company has been operating since 2018 with 6 sewing lines and has now expanded to 36 sewing lines, creating jobs for more than 5,000 workers. The effective support of the government and functional sectors not only helps enterprises affirm their production capacity, bring products to the market, and create great opportunities in expanding international trade activities, but also helps enterprises feel secure in continuing to implement steps according to the investment roadmap to increase production capacity." The development of industrial parks and clusters is a key factor contributing to the process of economic restructuring towards industrialization and increasing export value. Only 4 industrial parks in operation in the province have attracted over 170 investment projects, including more than 90 domestic investment projects with a total registered investment capital of over 20,000 billion VND and more than 80 foreign investment projects with a total registered investment capital of about 2,000 million USD. Regarding industrial clusters, the province has 27 clusters established, attracting 165 registered investment projects with a total registered capital of over VND 13,600 billion, creating stable jobs for more than 27,200 workers. The export value in industrial zones and clusters accounts for over 85% of the province’s total export value. In the new development trend, many comparative advantages of the province’s industrial sector will be competed by localities in the region and areas with similar development conditions. In particular, the shift in value chains, requirements of partners and markets towards sustainable production and consumption, the trend of green economy, digital economy, and circular economy are taking place strongly; the issue of carbon tax, carbon verification tools applied in many countries around the world... require the industry to keep up with new trends. To continue to have breakthrough development, it is necessary to deploy many synchronous and effective solutions, creating more resources and new growth drivers to promote sustainable industry.

CMC Corporation, Thuy Van Industrial Park, Viet Tri City, increases investment in modern technology in the production of high-end ceramic tiles, improving production and business efficiency.

Reasonable structural transformation

Along with taking advantage of opportunities, effectively exploiting potentials and new development advantages from the positive impacts of free trade agreements, and shifting investment capital flows, there are still many opportunities for the province’s industry to make a breakthrough through exploiting internal resources from investment capital, infrastructure of industrial parks and clusters that are gradually invested synchronously, an abundant labor force, structural transformation within the industry, and preferential mechanisms and policies for the operations of manufacturing enterprises. The investment and business environment in the province continues to improve; the provincial competitiveness index PCI in 2023 increased 14 places compared to 2022, belonging to the group of 10 localities with the best management quality in 2023.

The Provincial People’s Committee has issued Plan No. 3915/KH-UBND, dated September 19, 2024, on implementing the project on restructuring the industry and trade sector in the province for the period up to 2030, identifying the goal of striving for Phu Tho province to basically complete the goal of industrialization and modernization by 2030. Orientation of industrial development with focus, modern technology, and environmentally friendly; promoting in-depth industrial development, industries, and products with high added value; aiming at developing green, sustainable, competitive industry; deeply participating in the global value chain; meeting market and export requirements. Accordingly, restructuring key industries in the direction of shifting from resource-intensive, energy-intensive, and labor-intensive industries to industries using advanced technology, saving energy and labor, and green industries, from low value-added stages to high value-added stages in the value chain. For traditional industries, focusing on maintaining and developing industries such as chemicals, fertilizers, wood and paper processing, footwear, construction materials, tea processing, etc. Shifting the structure and diversifying products of the province’s traditional industries, ensuring supply for domestic market demand.

Focusing on attracting investment and developing high-tech industries, including the production of new materials, electronic and telecommunications equipment, information technology products, integrated automatic operation equipment, remote control, software manufacturing industry, and digital products. Prioritizing the development of the smart manufacturing industry is a breakthrough to form new production capacity associated with science and technology, innovation, and digital transformation to take shortcuts and take the lead in developing a number of industries and products, focusing on developing high-tech products.

According to Mr. Nguyen Viet Dung, Director of the Department of Industry and Trade, with the function of state management, the Department continues to research and propose mechanisms and policies to encourage industrial development, create linkages, spillover effects, and increase growth momentum in key industries and fields such as traditional industry, high-tech industry, new industry, clean energy, etc. At the same time, coordinate with relevant departments and branches to guide and support enterprises in researching technological innovation and implementing export promotion activities in new markets. Thereby, promoting enterprises to apply modern production and management technologies associated with the digital transformation process, developing smart production, and contributing to improving productivity and competitiveness of key industries, fields, and industrial products.

Nguyen Hue