Digital Economy Emerges as a New Growth Driver

The digital economy is becoming one of the most dynamic growth sectors in Phu Tho Province as the electronics industry, digital technology, digital services, and digital transformation across governance, production and daily life continue to expand. With its digital economy now ranking among the country’s leading localities, the province is clearly transitioning from a traditional growth model to one driven by technology, data and innovation.

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Electronics and Digital Technology Drive Growth

According to the Provincial Steering Committee for Science, Technology, Innovation and Digital Transformation, the digital economy is estimated to account for 22.71% of Phu Tho’s GRDP, ranking third among Vietnam’s 34 provinces and centrally governed cities. This reflects the increasingly significant contribution of digital transformation to the province’s economic structure.

The electronics and digital technology sectors continue to serve as the primary engines of growth. Phu Tho is home to approximately 600 enterprises engaged in electronic component manufacturing, software development, digital services and technology solutions. The export value of digital industrial products has exceeded $7 billion, contributing approximately 4.55 percentage points to the province’s GRDP growth in 2025.

Several high-tech industries have recorded remarkable growth. Laptop production increased by 87.1%, while electronic components rose by 26.41%. Meanwhile, the manufacturing of electronics, computers and optical products now accounts for more than 38% of the province’s total industrial output, continuing to underpin industrial production and exports.

Digital transformation is also expanding across many other socio-economic sectors. In agriculture, the province is gradually developing digital farming models, promoting e-commerce linked to OCOP products, applying product traceability systems, and using digital technologies for forest monitoring and natural disaster early warning. In public administration, Phu Tho now provides more than 2,100 online public services, with over 93% of administrative applications processed online.

At the same time, new digital community initiatives such as Digital Community Technology Teams, Digital Families, Digital Markets and Digital Villages are gradually changing how citizens access digital services. More than 2.5 million electronic identification (e-ID) accounts have already been issued, providing an important foundation for the future development of both the digital economy and digital society.

To create new growth opportunities, the province is also orienting development toward strategic technologies including artificial intelligence (AI), big data, semiconductor technology, next-generation digital technologies and innovation. Phu Tho has expanded cooperation with major institutions and corporations, including the Ministry of Science and Technology, Vietnam National University, Hanoi, VNPT, Viettel, and FPT, to build an innovation ecosystem and promote sustainable digital economic development.

Expanding Growth Through Innovation

To date, Phu Tho’s digital economy has been driven primarily by the electronics and digital technology industries. The next stage of development, however, will require new growth drivers based on innovation, strategic technologies and a highly skilled workforce.

Although the digital economy already represents 22.71% of GRDP, ranking third nationwide, significant development potential remains. Many local enterprises are still at an early stage of digital transformation, research and technology development activities remain modest, and the supply of highly qualified human resources has yet to meet the demands of emerging technology industries. These challenges also represent major opportunities for future growth.

According to Nguyen Minh Tuong, Director of the Department of Science and Technology, science, technology, innovation and digital transformation should become not only tools for improving public administration but also key drivers of economic growth. The province will prioritise the development of strategic technologies such as artificial intelligence (AI), big data, semiconductor technology, biotechnology, and next-generation digital technologies, while accelerating the application of advanced technologies across industry, agriculture and services.

To realise this vision, Phu Tho is gradually building an innovation ecosystem that brings together government agencies, scientists and businesses. The planned establishment of a Provincial Innovation Centre aims to connect research, education and production resources while creating an environment where technological ideas can be commercialised into high-value products and services. This is regarded as a crucial step in moving from technology adoption to technological innovation and from technology acquisition to technology mastery.

Meanwhile, digital infrastructure continues to be identified as the foundation for long-term growth. The development of shared databases, intelligent operations centres, expanded online public services, cashless payment systems, and digital transformation support for small and medium-sized enterprises is creating favourable conditions for the digital economy to expand across every aspect of society.

In the industrial sector, the province is prioritising investment in high-tech projects involving smart devices, electronics and semiconductor manufacturing with high technological content. This strategy aims not only to increase economic value-added but also to shift gradually from assembly-based manufacturing toward knowledge- and technology-driven production. At the same time, digital skills training for government officials, businesses and citizens is being strengthened to build a workforce capable of meeting the demands of the digital economy.

Although challenges remain—including uneven digital infrastructure in some areas, a shortage of leading technology enterprises and limited high-quality human resources—Phu Tho has established a solid foundation and remains committed to making science, technology, innovation and digital transformation the core drivers of future development. As a result, the digital economy is evolving beyond a rapidly growing sector to become a key engine opening up new opportunities for sustainable economic growth in the years ahead.

Huong Giang