Industry Reaffirms Its Role as the Driving Force of the Economy

Amid global economic uncertainties caused by geopolitical conflicts and volatile fuel prices, Phu Tho Province has maintained strong growth momentum, recording a double-digit GRDP growth rate of 10.18% in the first six months of 2026. This impressive performance has not only positioned the province as the leading economy in Vietnam’s Northern Midlands and Mountainous Region but has also reaffirmed the industrial sector’s role as the principal engine of local economic growth.

During the first half of 2026, the electronics and manufacturing industries continued to accelerate, maintaining their position as the province’s leading growth drivers. Photo: Jahwa Vina Co., Ltd., Khai Quang Industrial Park.

The province’s economy delivered robust results during the first half of the year, with the industry and construction sector emerging as the key growth driver, expanding by 14.89%.

Within the industrial sector, the Index of Industrial Production (IIP) increased by 15.94%, led by continued strong growth in electronics and manufacturing. The expansion of manufacturing industries also played a significant role in boosting provincial budget revenues.

By the end of June, total state budget revenue was estimated at VND 34.8 trillion, equivalent to 60% of the annual target and up 19.2% year-on-year. Domestic revenue reached nearly VND 31.6 trillion, representing an increase of 21.5% compared with the same period last year and fulfilling 61.2% of the annual plan.

This strong fiscal performance reflects the healthy production and business activities of the enterprise sector while providing additional resources for continued investment in industrial infrastructure.

These achievements are the result of sustained efforts to improve the investment environment, enabling the province’s industrial parks to attract nearly $1.75 billion in foreign direct investment (FDI)—4.8 times higher than the same period last year—as well as more than VND 9.6 trillion in high-quality domestic investment.

A decisive factor behind this success has been the province’s proactive preparation of cleared land for investment projects. To ensure timely site handover for major developments, the Provincial Party Committee and the Provincial People’s Committee have directed land acquisition and compensation efforts with strong determination and close coordination at all levels of government.

Special task forces led directly by provincial leaders have been established to resolve issues on site, while local authorities have been required to commit to clearly defined implementation schedules.

In particular, the province has continued to effectively organize its regular “Entrepreneurs' Coffee” dialogue program, providing a platform for provincial leaders and department heads to meet directly with businesses, listen to their concerns, and promptly resolve bottlenecks, especially those related to land clearance.

Alongside creating sufficient space for major investment projects, Phu Tho has adopted a strategy of developing technical infrastructure ahead of demand, creating a strong foundation for future growth and enhancing the province’s attractiveness to international investors.

The province has invested heavily in strategic interregional transport corridors connecting industrial parks directly with northern seaports and major logistics centers. At the same time, the planning and synchronized development of 66 satellite industrial clusters alongside major industrial parks has created a comprehensive industrial ecosystem capable of attracting high-value industries such as semiconductor manufacturing and electronic component production.

In addition to infrastructure improvements, the province has significantly upgraded its investment promotion approach by shifting from a traditional administrative management model to one focused on supporting businesses through comprehensive administrative reform.

A notable example is the effective implementation of the province’s legal “green channel” mechanism, which has directly benefited 76 key industrial projects and project groups.

Under this mechanism, investment appraisal and licensing procedures have been significantly streamlined. Five core administrative procedures are processed within 24 hours, while the processing time for 18 additional procedures has been reduced by at least 50% compared with standard regulations.

This transparent and business-friendly institutional environment has become a key factor in strengthening investor confidence and encouraging major corporations to make long-term investments in the province.

To ensure that industry continues to serve as the province’s primary growth engine and contributes to achieving its double-digit growth target, the Provincial Party Committee and the Provincial People’s Committee have identified project implementation progress and enterprise performance as key indicators of government effectiveness.

The province’s immediate priorities are to remove remaining land clearance bottlenecks and maximize the production capacity of newly established projects.

Supported by a strong industrial base, a sustained inflow of foreign direct investment, an efficient administrative system, and the continued implementation of the legal “green channel” mechanism, Phu Tho’s industrial sector is well positioned to contribute to the province’s goal of achieving 11% GRDP growth for the full year.

These advantages provide a solid foundation for Phu Tho to accelerate its development and reinforce its position as the leading economic growth center of the Northern Midlands and Mountainous Region.

Tran Tinh