Enhancing Business Capacity in the New Development Space

Along with existing industrial zones, clusters, and business systems, following the merger, Phu Tho Province has gained additional room to develop large-scale manufacturing sectors, forming linkage chains among industry, agriculture, trade, services, and logistics. The new development space opens up many opportunities while also requiring businesses to enhance their internal capacity to effectively leverage the market and investment capital flows.

To retain customers and participate more deeply in global supply chains, businesses can no longer rely solely on low-cost labor or low-cost contract manufacturing, but must increasingly meet higher requirements regarding quality, schedule, and environmental, social, and governance (ESG) standards.

According to Mr. Nguyen Duc Tai, CEO of Lumi Vietnam, the “Making Product” path requires the courage to think, act, and conduct research to overcome numerous barriers, from research and development (R&D) and product refinement to conquering the market. To achieve breakthroughs, a proactive spirit, commitment, and determination are vital factors for enterprises.

By boldly applying technology and automating production lines with modern systems like SMT and DIP, alongside a highly specialized workforce, Lumi Smart Factory — a “Make in Vietnam” IoT/smarthome device manufacturing plant in Thang Long III Industrial Park (Binh Xuyen Commune) — not only enhances production capacity and optimizes the quality of the company’s smarthome and IoT product lines, but also effectively supports its partners.

Through a comprehensive service ecosystem spanning design, R&D, and manufacturing, Lumi is contributing to helping Vietnamese enterprises improve their capacity and shorten the time required to bring high-quality tech products to market.

IoT and smarthome device manufacturing at Lumi Smart Factory - Thang Long III Industrial Park (Binh Xuyen Commune).

Similarly, DT Vina Automation Joint Stock Company (Yen Lac Commune), established in 2020, quickly affirmed its position in precision mechanics, becoming a partner to many FDI enterprises. The company has invested in machinery and automation equipment to improve productivity and product quality, gradually integrating deeper into the supply chain.

Director Do Van Doan stated: “Proactively renewing equipment and mastering technology help products achieve high precision while increasing productivity and production efficiency, creating a foundation for the company to expand its market.”

Development reality confirms an inevitable trend: to maintain sustainable competitiveness and keep pace with new standards, the growth problem for Phu Tho enterprises must be based on technological innovation, productivity enhancement, and green transformation, rather than merely focusing on expanding land scale or output volume.

In the first 7 months of 2026, the province’s export turnover reached 31.53 billion USD, up 39.7%; imports reached 41.9 billion USD, up 65.2%. Registered FDI capital reached over 1.9 billion USD, 2.6 times higher than the same period and exceeding the annual target by 18.9%. Over 3,000 newly established enterprises and 730 businesses resumed operations. The market scale and integration level of Phu Tho’s economy with external production chains are expanding rapidly.

However, while some FDI enterprises and large domestic firms have accelerated automation, digital governance, and international-standard manufacturing, a portion of small and medium-sized enterprises (SMEs) remains constrained by capital, technology, human resources, and market access. In supporting industries, many enterprises still use outdated equipment, resulting in unstable productivity and quality that struggle to meet high-requirement orders.

According to Mr. Doan Van Luong, Director of Phu Luong Co., Ltd. (Phuc Yen Ward) — a company currently partnering with over 40 FDI enterprises — practical cooperation shows that advantages in labor costs or simple contract manufacturing are no longer enough to create competitiveness. To move up the supply chain, Vietnamese enterprises must master technology, increase the value content of their products, and invest resources in R&D, automation, and high-quality human resource training.

From that reality, the province is adjusting its business support policies toward making a more direct impact on production capacity. The supporting industry development program focuses on consulting for Kaizen, Lean Manufacturing, quality management systems, human resource training, and technology reception and transfer.

Notably, Resolution No. 62/2025/NQ-HDND dated November 25, 2025, provides a basis for supporting small and medium industrial manufacturing enterprises to invest in technological innovation and modernization. In 2026, the province continues to roll out registration for eligible projects, prioritizing high technology, new, advanced, and clean technologies.

Manufacturing precision mechanical products, enclosures for semiconductor equipment, and sheet metal processing at SMCtech Joint Stock Company (Ba Thien I Industrial Park).

Alongside direct support policies, the province’s science and technology ecosystem is also expanding. Phu Tho currently has 63 science and technology organizations, 23 universities and colleges, 20 research institutes and centers, and 31 science-technology and high-tech enterprises. The province is shifting research tasks toward output-based commissioning, prioritizing applied research, technology transfer, and supporting enterprises in innovating production processes.

According to Director of the Department of Science and Technology Nguyen Minh Tuong, one of the key tasks in 2026 is building the Innovation Center and the Science, Technology, and Innovation Development Plan for the 2026–2030 period, while enhancing technology transfer capacity and intellectual property protection.

The 2025 PCI results placed Phu Tho Province in the “Good” group, ranking 2nd nationally in the “Access to Resources” index, 5th in “Proactive Governance,” and among the top 10 localities in several sub-indices regarding business support and informal costs.

Investment capital flows and the number of market entrants continue to rise, opening up vast development potential while setting higher standards for growth quality. In this context, the province is strongly shifting its support focus from resolving administrative procedures to enhancing internal capacity for enterprises, concentrating on technology, management, human resources, digital transformation, and value chain integration.

This remains a key priority in the coming period to help businesses adapt to new standards, raise productivity, increase added value, and boost competitiveness within the new development space.

Ngoc Tuan