Industrial Clusters Create New Space for Economic Development

In recent years, the network of industrial clusters (ICs) across Phu Tho Province has increasingly affirmed its role as a “satellite” of local industrial development. Beyond providing production space for small and medium-sized enterprises, these industrial clusters are opening up new development opportunities, creating local jobs, facilitating labor restructuring, promoting urbanization and supporting the sustainable development of the rural economy.

From early morning, Tan Phu Industrial Cluster in Tan Son Commune is bustling with workers arriving for their shifts. Inside the factories, machinery operates continuously as production lines run at full capacity to fulfill export orders.

Working at Gemmy Tan Son Joint Stock Company, located in Tan Phu Industrial Cluster, for the past two years, Bui Thi Lan, a resident of Tan Son Commune, said her family had previously relied mainly on farming and seasonal jobs with unstable income.

"My current income is around VND 8 million per month. Working close to home means I don’t have to rent accommodation, I save on travel expenses and still have time to take care of my children and family. My life is much more stable than before," she said.

A corner of Tan Phu Industrial Cluster in Tan Son Commune.

Dinh Cong Ha, a worker at TS FLEX Co., Ltd. in the same industrial cluster, said the working environment has continued to improve, with the company placing greater emphasis on vocational training, social insurance and occupational safety, giving employees confidence to remain with the company for the long term.

Experience from many localities shows that the development of industrial clusters is significantly transforming the employment structure in rural areas. Instead of leaving their hometowns to seek work in distant provinces, many workers now choose to work locally with stable incomes, helping reduce labor migration while improving family living standards.

The province currently has 66 industrial clusters, of which 13 have largely completed technical infrastructure, including centralized wastewater treatment systems, and have successfully attracted stable business operations. Together, the clusters host around 930 secondary investment projects and provide employment for more than 37,000 workers, with average monthly incomes ranging from VND 7 million to VND 10 million.

Workers manufacture wooden products for export at Gemmy Tan Son Joint Stock Company in Tan Phu Industrial Cluster.

Following the establishment of the new Phu Tho Province, the development strategy for industrial clusters is creating fresh growth opportunities and expanding investment prospects across many localities. The Department of Industry and Trade has recently announced the establishment of three new industrial clusters: Dam Duong, Yen Phuong and Son Loi. The move marks an important milestone in expanding industrial development space following the administrative reorganization.

These industrial clusters are planned to attract processing and manufacturing industries, high-tech production and environmentally friendly businesses, while also developing supporting industrial services.

In line with the province’s development orientation, alongside investment in internal infrastructure, provincial departments, sectors and local authorities will prioritize the completion of transport, electricity, water supply and external connecting infrastructure to facilitate project implementation and improve investment efficiency.

Removing Bottlenecks to Attract Investment

In addition to existing industrial clusters, several new projects are also being promoted. In Tam Dao Commune, local authorities have recently received an application to establish Hop Thanh Industrial Cluster, covering 50 hectares with an estimated infrastructure investment of VND 250 billion. The cluster is planned as a multi-sector industrial zone prioritizing processing and manufacturing, electronics, mechanical engineering, garment production without dyeing, renewable energy and agricultural processing, in line with the province’s green development strategy.

Convenient transport connections help Bai Ba–Dong Thanh Industrial Cluster attract numerous secondary investors.

Meanwhile, several existing industrial clusters are being expanded. Tan Phu Industrial Cluster, for example, will increase its planned area to 49.15 hectares. It will prioritize investment in agricultural processing, manufacturing, mechanical engineering, garments and footwear, food and beverage processing, and wood processing industries. The technical infrastructure is being developed by Quang Minh Industrial Construction Materials Joint Stock Company with a total investment exceeding VND 395 billion.

To improve the operational efficiency of industrial clusters, the province is accelerating investment in technical infrastructure, completing legal procedures and strengthening coordination among departments, sectors and local authorities to resolve difficulties faced by businesses. Priority is also being given to transport connectivity, environmental treatment systems and social infrastructure serving workers.

A typical example is Phu Ho Industrial Cluster in Phong Chau Ward, covering 75 hectares with a total investment of more than VND 532 billion. The province is actively addressing land clearance issues and completing land allocation procedures with the goal of commencing construction in August 2026. During the recent Entrepreneurs' Coffee programme, the project investor, Nam Hoang Viet Joint Stock Company, reported several obstacles affecting implementation. Chairman of the Phu Tho Provincial People’s Committee Tran Duy Dong instructed the Phong Chau Ward People’s Committee to work closely with the investor to accelerate compensation and site clearance according to the established timeline.

The provincial leadership’s direct dialogue with businesses and close monitoring of project milestones demonstrate the province’s strong commitment to accelerating industrial infrastructure development. Alongside administrative reform, support for investors, faster site clearance and priority investment in infrastructure are considered key solutions for creating new growth poles and enhancing the effectiveness of the province’s industrial cluster network.

Beyond creating employment and retaining local workers, industrial clusters are opening new development space, attracting investment, accelerating economic restructuring and improving living standards. As bottlenecks related to infrastructure and land clearance continue to be addressed, the province’s industrial cluster system is expected to become an important driving force in realizing Phu Tho’s ambition of becoming a leading industrial center in Vietnam’s Northern Midlands and Mountainous Region.

Ngoc Tuan