Phu Tho Removes Bottlenecks to Accelerate Industrial Cluster Development

As Phu Tho strives to achieve double-digit economic growth, the province is accelerating investment in industrial cluster (IC) infrastructure alongside the expansion of its industrial parks. Authorities are taking decisive action to remove obstacles, create ready-to-use industrial land and attract new manufacturing and business investment.

Vice Chairwoman of the Provincial People’s Committee Phung Thi Kim Nga inspects the Tho Tang–Lung Hoa Industrial Cluster project.

Resolving Obstacles Where They Arise

Industrial clusters play an important supporting role to the province’s industrial parks by providing production space for small and medium-sized enterprises, supporting industries, agro-forestry processing, mechanical engineering, electronics and other manufacturing sectors.

However, many industrial cluster projects have experienced prolonged delays in land clearance due to complicated land records accumulated over different periods, unclear land-use origins, and disagreements over compensation. Investors have also encountered difficulties relating to investment procedures, land-use conversion, land allocation and utility infrastructure connections.

One example is the Phu Ho Industrial Cluster, covering 75 hectares with a total investment of more than VND 532 billion. After the investor reported difficulties involving land documentation, resettlement and land handover, provincial leaders instructed relevant authorities to establish clear deadlines for each outstanding task while requiring the investor to prepare sufficient resources to begin construction immediately once the site is handed over.

Another project facing challenges is the Tho Tang–Lung Hoa Industrial Cluster, which covers nearly 34.7 hectares. To date, land clearance has been completed for only about 28% of the project area.

According to Le Chinh Hung, General Director of Binh Minh Infrastructure Development Joint Stock Company, the project investor has advanced compensation payments and worked closely with local authorities for several years to persuade affected households. However, a number of residents continue to reject the approved compensation plans and are seeking support beyond current regulations, preventing the project from obtaining sufficient cleared land to begin infrastructure construction.

Recognising these challenges, provincial leaders have recently organised a series of thematic meetings and conducted regular site inspections, directing departments, agencies and local authorities to review each project individually and adopt a practical approach of “resolving obstacles wherever they arise.”

In early July 2026, Phung Thi Kim Nga, Vice Chairwoman of the Provincial People’s Committee, personally inspected the Tho Tang–Lung Hoa Industrial Cluster and instructed the authorities of Vinh Thanh and Tho Tang communes, together with relevant agencies, to intensify public communication and dialogue with affected residents in order to build consensus during land acquisition.

For households that fail to comply with legal procedures, she instructed competent authorities to complete all required documentation and implement compulsory land inventory and land recovery procedures in accordance with the law, with the goal of completing land clearance during the fourth quarter of 2026.

A notable feature of the province’s current approach is its increasingly proactive and practical administration. Many issues are now resolved directly at project sites, with clear responsibilities and implementation deadlines assigned to each agency. This not only accelerates project progress but also strengthens investor confidence in Phu Tho as an investment destination.

Creating Clean Industrial Land for Future Growth

While accelerating ongoing projects, Phu Tho is also preparing new industrial land reserves to support the next phase of economic development.

Recently, the Department of Industry and Trade announced the establishment of three new industrial clusters—Dam Duong, Yen Phuong, and Son Loi.

According to Tran Quang Tuan, Director of the Department of Industry and Trade, these are the first industrial clusters established since the formation of the newly reorganised Phu Tho Province following administrative restructuring. Their establishment not only expands the province’s industrial development space but also reflects the strong commitment of the Provincial Party Committee, the Provincial People’s Council, the Provincial People’s Committee, and relevant departments and local authorities to attracting investment and developing industrial infrastructure.

At the same time, the province continues expanding existing industrial clusters. A notable example is Tan Phu Industrial Cluster, whose planned area has been increased to 49.15 hectares to accommodate additional projects in manufacturing, agricultural processing equipment, mechanical engineering, textiles, footwear and food processing.

Tan Phu Industrial Cluster in Tan Son Commune has been expanded to strengthen investment attraction.

Phu Tho is also reviewing and adjusting its industrial cluster master plan to better align with the province’s new development strategy following administrative consolidation. Under the revised plan, clusters that no longer meet development requirements will be removed, while new industrial clusters with advantages in transport connectivity and infrastructure will be added, with priority given to green, circular, eco-industrial and high-tech development models.

According to the Department of Industry and Trade, the province has established 67 industrial clusters, of which 35 are currently in operation. Together, they have attracted around 930 secondary investment projects and created employment for more than 37,000 workers.

However, the average occupancy rate remains at only 53%, with many industrial clusters still undergoing land clearance or infrastructure development.

As investment capital increasingly flows toward localities offering well-prepared industrial land and modern infrastructure, Phu Tho’s determination to remove bottlenecks and accelerate industrial cluster development is expected to deliver both immediate and long-term benefits.

Every additional hectare of cleared land, every new transport connection and every streamlined administrative procedure helps transform industrial clusters into new engines of economic growth, supporting industrial restructuring, creating more employment opportunities and increasing manufacturing output. Together, these efforts are laying a solid foundation for Phu Tho’s sustainable development in the years ahead.

Ngoc Tuan