International Economic Integration – A New Growth Driver for Phu Tho

After nearly 40 years of renewal and reform, international economic integration has become one of the key drivers of Vietnam’s economic growth. For Phu Tho Province, especially as it capitalizes on the opportunities arising from its expanded development space following administrative consolidation, integration not only opens access to global markets but also creates new momentum for attracting investment, transferring technology, improving labor productivity, and enhancing the competitiveness of the local economy.

From a Midland Province to a Link in the Global Value Chain

In recent years, local development strategies have undergone significant changes. While natural resources, land, and geographical location were once considered primary advantages, the ability to participate in global value chains has now become a crucial indicator of competitiveness. Phu Tho is demonstrating a strong transformation in this regard.

Valuetronic Co., Ltd. at Thang Long Vinh Phuc Industrial Park is an efficient FDI enterprise specializing in electronic component manufacturing.

From an economy primarily based on agriculture and traditional industries, the province has become an attractive destination for corporations and enterprises from Japan, South Korea, China, Singapore, the United States, and Europe. Electronic products, components, precision engineering products, garments, and wood-processing products manufactured in local industrial parks are now exported to major markets worldwide.

Notably, following the provincial consolidation, Phu Tho’s economic scale, population size, and development space have expanded significantly, creating favorable conditions for attracting large-scale investment projects. In the first five months of 2026 alone, the province attracted more than USD 1.3 billion in foreign direct investment (FDI). At the same time, approximately 2,300 new enterprises were established, reflecting the growing attractiveness of the local investment and business environment.

According to Mr. Kim Young Hoon, General Director of Partron Vina Co., Ltd. (Khai Quang Industrial Park), Vietnam’s participation in numerous new-generation free trade agreements has enabled businesses to expand export markets and integrate more deeply into global supply chains. Improvements in infrastructure, the investment environment, and workforce quality in Phu Tho continue to be important factors that encourage enterprises to expand production.

Foreign investors bring not only capital but also advanced technologies, modern management expertise, and international production standards. These factors are critical in creating a new quality of economic growth for the province.

Vietnam’s participation in a series of new-generation free trade agreements, including the CPTPP, EVFTA, UKVFTA, and RCEP, is creating tremendous opportunities for businesses.

For Phu Tho, integration has significantly expanded markets for local products. Industries ranging from manufacturing, electronics, and mechanical engineering to agriculture and tourism now have opportunities to access markets with hundreds of millions of consumers.

In 2025, the province’s export turnover reached approximately USD 36.8 billion, and the Department of Industry and Trade has set a target of USD 39.5 billion for 2026. These figures demonstrate the growing capacity of local enterprises to participate in global supply chains.

Beyond industrial products, many distinctive agricultural products such as tea, pomelos, OCOP products, and processed agricultural goods are gradually expanding their presence in international markets. At the same time, unique cultural values, including the Worship of the Hung Kings, Xoan Singing, and a rich system of cultural heritage, continue to promote the image of the Ancestral Land to the world.

According to Ms. Le Thi Nga, Director of Tam Dao Honey Joint Stock Company, the company’s products were previously consumed mainly in the domestic market. Today, however, many international partners are interested in products that meet food safety standards and traceability requirements. Integration has required changes in production methods but has also opened opportunities to access higher-value markets.

In addition to boosting exports, integration has created significant advantages in attracting investment. In 2025, the province attracted approximately USD 940 million in FDI, exceeding its target and nearly tripling the figure recorded in the previous year. This reflects growing confidence among international investors in the province’s investment environment.

Enhancing Competitiveness in a New Development Stage

International integration brings not only opportunities but also pressure for innovation. Participation in global markets requires businesses to meet increasingly stringent standards regarding product quality, environmental protection, social responsibility, and corporate governance. Such competitive pressure has become a driving force for technological innovation, digital transformation, and productivity improvement.

For local authorities, integration requires continued efforts to improve the investment and business environment, accelerate administrative reform, develop digital infrastructure, and enhance services for citizens and enterprises.

Recent achievements indicate that Phu Tho is on the right track. The province aims to achieve GRDP growth of approximately 11% in 2026, increase the number of active enterprises to more than 33,000, and accelerate the development of logistics infrastructure, industrial parks, and comprehensive digital transformation.

According to Mr. Bui Hong Do, Director of the Provincial Investment Promotion and Business Support Center, Phu Tho’s distinctive advantage today lies not only in its land resources or investment incentives but also in its increasingly favorable business environment, integrated infrastructure network, and developing industrial ecosystem. These factors are essential for deeper participation in global value chains.

In a world economy that continues to face uncertainties, international economic integration remains an inevitable trend and a strategic choice for any locality seeking rapid and sustainable development.

For Phu Tho, integration is not merely about expanding markets or increasing export turnover. More importantly, it is a process of acquiring knowledge, technology, modern management practices, and deeper connections with global economic flows.

From modern industrial parks and emerging logistics centers to the continuous implementation of high-tech FDI projects and the growing presence of products bearing the identity of the Ancestral Land in international markets, all signs indicate that international economic integration is truly becoming a new growth driver for Phu Tho in its new stage of development.

Quang Nam