Logistics: Powering Phu Tho Products to Reach Wider Markets

No longer merely a supporting service for manufacturing, logistics has evolved into the economy’s “soft infrastructure,” determining the speed of goods movement, the efficiency of supply chain connectivity and the competitiveness of businesses. Leveraging its growing industrial strengths, Phu Tho is positioning logistics as one of its key growth drivers, laying the foundation for locally made products to expand their presence in both domestic and international markets.

From Strategic Location to Regional Connectivity

Following the merger of the former provinces of Phu Tho, Hoa Binh and Vinh Phuc, the new Phu Tho Province has gained not only a larger economic scale but also a more integrated development space connecting the Northern Midlands with major industrial centres, Hanoi, Noi Bai International Airport, Hai Phong Port, and international border gates. This strategic location provides favourable conditions for logistics to evolve beyond freight transportation into a high value-added service industry.

The province’s 2025–2030 development strategy prioritises high-tech industries, manufacturing and processing, modern services, the digital economy, the green economy and innovation, while strengthening regional connectivity, improving the investment climate and creating new growth engines. Within this framework, logistics serves as the vital link connecting production, trade and exports.

Phu Tho is accelerating the development of warehousing and logistics services to seize opportunities from deeper international economic integration.

During the first six months of 2026, the province continued investing heavily in transport infrastructure linking industrial parks, economic zones and expressways, while expanding its industrial development network to 31 industrial parks and 66 industrial clusters. The increasingly comprehensive infrastructure is creating favourable conditions for the development of a modern logistics network capable of reducing transportation costs and improving supply chain efficiency.

Current logistics development is also shifting away from standalone services toward integrated logistics centres, where warehousing, multimodal transportation, customs clearance and order management are connected through a unified digital platform. Vietnam SuperPortTM is a prominent example of this emerging model.

According to Dr. Yap Kwong Weng, Chief Executive Officer of Vietnam SuperPortTM, “Businesses today need more than large warehouses or convenient transport routes—they need a smart logistics ecosystem. When logistics services are fully integrated, companies can shorten delivery times, reduce operating costs and strengthen their competitiveness in international markets.”

He added that, with its industrial base, transportation infrastructure and expanded development space following the provincial merger, Phu Tho has the potential to become the logistics hub of the Northern Midlands and Mountainous region.

Integrated logistics centres combine transportation and warehousing services to provide maximum convenience for customers.

This assessment is consistent with the province’s economic performance. In the first half of 2026, Phu Tho’s Gross Regional Domestic Product (GRDP) grew by approximately 10.4%, while industrial production, investment attraction and exports all maintained strong growth momentum. These achievements underscore the rising demand for high-quality logistics services as an increasingly indispensable component of the provincial economy.

More importantly, logistics capability has become a key consideration for multinational corporations when making investment decisions, alongside geographic location, infrastructure and workforce quality. A modern logistics system enables businesses to reduce inventory costs, shorten delivery times and ensure supply chain stability, thereby enhancing the province’s attractiveness to investors.

Businesses Reap Significant Benefits

If transport infrastructure represents the arteries of the economy, logistics serves as its circulatory system, ensuring those arteries function efficiently. The value of expressways and industrial parks lies not only in their scale of investment but also in their ability to move goods to market faster, at lower cost and with greater reliability.

During the first six months of 2026, industrial production continued to expand steadily, with the foreign direct investment (FDI) sector remaining a major growth engine. The province recorded more than $22 billion in export turnover, while attracting approximately $1.77 billion in foreign direct investment, reflecting strong investor confidence and placing even greater demands on the logistics system.

For electronics manufacturers, engineering firms and component producers, delivery performance is critical to maintaining customer confidence and securing long-term contracts.

According to Nguyen Thu Van, Head of the Business Department at Exedy Vietnam Co., Ltd., located in Khai Quang Industrial Park, “International customers evaluate not only product quality but also delivery capability. Well-organised logistics significantly reduces warehousing costs, accelerates capital turnover and enables businesses to compete for higher-value orders.”

Alongside the development of integrated logistics centres, many businesses have shifted from the traditional approach of “producing first and arranging shipments later” to managing supply chains from the planning stage. Digital platforms now integrate data on orders, warehousing, transportation and customs procedures, helping optimise inventory, reduce operating costs and improve manufacturing efficiency.

Experience from many localities has shown that reducing logistics costs by just a few percentage points can save businesses tens of billions of Vietnamese dong each year. Those savings can then be reinvested in technology, production expansion and higher incomes for employees. Investment in logistics, therefore, is also an investment in sustainable economic growth.

A New Driver of Economic Growth

Looking ahead, while maintaining its goal of achieving annual GRDP growth of 10% or higher, Phu Tho will continue prioritising the development of modern services, strengthening regional connectivity, improving the investment environment and supporting business development.

Within this strategy, logistics is no longer viewed solely as a transport or trade service. Instead, it has become the platform that links manufacturing with exports, domestic enterprises with multinational corporations, and Phu Tho with global value chains.

Dao Dang Hoa, Deputy Director of the Department of Industry and Trade, said: “The province will continue developing transport and logistics infrastructure in a coordinated manner to establish a modern service ecosystem that supports businesses. As logistics costs decline, business competitiveness will improve, contributing to greater investment attraction, expanded exports and sustainable economic growth.”

Following the provincial merger, Phu Tho now possesses significant advantages in terms of strategic location, infrastructure and development space. When these strengths are integrated through a modern logistics system, the province will not only shorten transport distances and reduce production costs but also expand opportunities to participate more deeply in global supply chains. This will provide a solid foundation for realising Phu Tho’s ambition of bringing products bearing the province’s brand to markets around the world.

Quang Nam