Phu Tho Aims to Become a Hub for Receiving New-Generation FDI

Phu Tho aims to become a hub for receiving high-tech FDI, green industry, and tech services for the Northwest region and the Capital’s Western belt by 2030. To achieve this objective, the province is shifting its approach from attracting individual projects to preparing an ecosystem capable of welcoming lead-chain corporations—spanning industrial infrastructure, human resources, and logistics to research and development (R&D), supporting industries, and local enterprises' supply capacities.

Creating a “Reception Ecosystem” for New Capital Flows

Following the regional merger, Phu Tho province has affirmed its position as one of the major economic centers. Its expanded development space, favorable transport connections, and vast room for growth in land, industry, and services create a strong advantage for the province to make breakthroughs in the processing and manufacturing sectors.

Perspective of the Nam Binh Xuyen Green Park Industrial Zone Project—an industrial park constructed and developed according to green, smart, and sustainable orientations, integrating modern infrastructure, advanced technology, and international environmental standards.

Notably, the three pre-merger economic regions feature clear complementary and supportive roles in their industrial structure. Vinh Phuc holds strengths in automobiles, motorcycles, mechanics, and supporting industries; Phu Tho possesses advantages in electronics, components, and processing; while Hoa Binh provides land space, energy, materials, and connections to the west of Hanoi.

This integration establishes a large-scale, diverse industrial base eligible to form industry clusters rather than developing isolated industrial parks. Capital flows into the area in recent times clearly reflect this advantage.

In the first 7 months of 2026, the province attracted over 1.9 billion USD in FDI capital—approximately 2.6 times higher than the same period and exceeding the annual plan by 18.9%; export turnover reached around 31.53 billion USD, up 39.7%.

However, the province’s goal goes beyond merely expanding capital scale. To elevate technology content, increase value-added, and enable domestic enterprises to participate deeper in value chains, the Provincial People’s Committee approved the Scheme on orientations for attracting new-generation FDI for the 2026–2030 period.

The target for 2030 is clearly defined: Phu Tho will become a hub receiving high-tech FDI, green industry, and tech services for the Northwest region and the Capital’s Western belt, participating more deeply in high-value-added stages of global value chains.

Objectives of the Scheme on orientations for attracting new-generation FDI for the 2026–2030 period: Attract 7–8 billion USD in new FDI capital, with 60–70% being new-generation FDI; over 80% of new projects in manufacturing, high technology, electronics, semiconductors, automobiles/electric vehicles, precision mechanics, medical equipment, renewable energy, new materials, and supporting industries. Establish at least 1 high-tech Industrial Park (IP), 3 supporting IPs, 3 specialized IPs, and 1 regional innovation center; 100% of IPs equipped with digital and environmental treatment infrastructure, with renewable energy usage in IPs reaching a minimum of 50%.

This represents a significant shift in how infrastructure is prepared to receive new capital flows. For projects in electronics, semiconductors, data centers, or smart manufacturing, a clean plot of land along with road, electricity, and water systems is no longer a sufficient condition.

Investors require stable technical infrastructure, high-capacity digital infrastructure, standardized environmental treatment, efficient logistics, and a technical workforce capable of immediately meeting production demands.

The province currently has 31 industrial parks, including 18 operating IPs and 5 IPs under construction. In the first 7 months of 2026, the province approved investment policies for Doan Hung, Phu Ninh, and Trung Ha II Industrial Parks; while simultaneously accelerating planning, land clearance, and investment in connecting transport routes.

Three industrial parks—Phuc Yen, Doan Hung, and Thinh Minh—have broken ground, where Environmental, Social, and Governance (ESG) requirements, Net-Zero roadmaps, rooftop solar power, and water recycling are guided right from the planning stage.

Investment space is also organized toward specialization. The Vinh Yen - Viet Tri area focuses on developing electronics, data, and digital services; Binh Xuyen - Phuc Yen develops mechanical manufacturing, supporting industries, and electrified vehicles; Hoa Binh - Thanh Son - Yen Lap leans toward materials and green energy; while Tam Nong - Thanh Thuy ties into high-tech agriculture and eco-economy.

This zonation demonstrates that Phu Tho’s objective is not to spread FDI projects thinly across the territory, but to build specialized production poles.

There, a lead-chain enterprise can pull along a network of suppliers, technical services, logistics, and human resources, thereby creating greater spillover effects for the local economy.

Retaining Capital Flows to Create Lasting Value

According to the report on the New-Generation FDI Scheme, Phu Tho still faces several bottlenecks, such as limited domestic R&D capacity, a lack of large-scale research centers, low localization rates, and local enterprises' inability to fully satisfy global standards.

Additionally, the province faces shortages in green infrastructure, renewable energy, and high-tech human resources in semiconductors, electronics, and information technology.

Therefore, attracting high-quality FDI is determined not merely by capital scale, but by its capacity to generate substantive value.

The province prioritizes projects in R&D, design, and core component manufacturing; while comprehensively evaluating the level of technology transferred, the capability to build capacity for local businesses and workers, and the portion of value-added that can be retained within the locality.

By 2030, Phu Tho sets a target to have at least 100 domestic enterprises participating in FDI supply chains, including 20 enterprises meeting Tier-1 supplier standards; and training at least 20,000 high-tech workers.

These are two indicators with direct significance for the spillover effect of the FDI sector. When local businesses can produce components, materials, molds, provide logistics, technical services, or participate in design phases, the value generated by an FDI project will extend beyond factory walls into local enterprises and the local labor market.

In parallel, Phu Tho aims to complete its R&D and innovation ecosystem by attracting design, testing, and high-tech laboratory centers; while training specialized human resources in fields such as robotics, SMT, and AIoT...

The targeted model is close linkage among FDI enterprises, training institutions, research centers, and local businesses, thereby step-by-step building a value chain capable of self-reinforcement and development.

To realize these goals, the province continues to elevate administrative capacity through a single seamless lead agency, from processing procedures to monitoring and post-inspecting investors' commitments.

Alongside this, business support models such as the “Green Lane,” business support task forces, and the “Entrepreneur Coffee” program continue to be maintained and leveraged practically, matching business demands.

Phu Tho’s FDI absorption capacity has improved noticeably compared to the previous period.

According to Mr. Bui Hong Do, Director of the Phu Tho Provincial Investment Promotion and Business Support Center, the province is defining clearer boundaries against unsuitable capital flows; resolutely turning down projects with high pollution risks, those utilizing technologies subject to transfer bans, labor-intensive processing in areas facing labor pressure, and sectors carrying potential risks of hazardous waste discharge.

Phu Tho stands before a great opportunity to leverage its geo-economic advantages, establishing an ecosystem capable of attracting and retaining high-tech investors.

In the upcoming period, FDI attraction efficiency will be measured not just by registered capital scale, but by the substantive values brought to the economy: transferred technology, upgraded domestic enterprises, enhanced human resource quality, and value-added retained within the locality.

Ngoc Tuan