Strong Industrial Growth: A Spectacular Recovery Momentum

Since the beginning of the year, industrial production in the province has maintained a positive recovery and growth trajectory, with many sectors achieving significant increases compared to the same period last year. The Industrial Production Index (IIP) for February rose by 32.47% year-on-year. For the first two months of 2026, the overall IIP increased by 27.4%, within which the manufacturing and processing sector grew by 32.5% and electricity production and distribution by 36.33%.

JNTC Vina Co., Ltd. (Thuy Van Industrial Park) specializes in tempered glass and mobile components, providing jobs for thousands of workers.

Proactive Enterprises

Several industries witnessed sharp increases, including high-tech manufacturing, machinery repair and installation, non-metallic mineral production, electronics, computers, and food processing. Key products showed robust growth: floor tiles (+65%), cement (+56.2%), laptops (+51.7%), electronic components (+45.6%), electricity generation (+41.5%), and steel (+23.2%).

To achieve these energetic results in early 2026, businesses have proactively secured raw materials, signed new orders, and optimized supply chains. BHFlex Vina Co., Ltd. (Khai Quang Industrial Park), a 100% Korean-invested firm, is a prime example. Having established five factories in the province, the company employs over 4,100 workers with an average income of 13 million VND per month. In 2025, BHFlex contributed over 2,000 billion VND to the state budget. To expand in 2026, the company is modernizing production lines with Artificial Intelligence (AI) and Big Data to optimize quality control and productivity.

Similarly, at Ba Thien Industrial Park, Mr. KC Chen, Senior Vice President of Compal Vietnam, noted that the province’s favorable policies for high-tech projects and infrastructure connectivity have encouraged expansion. Compal plans to build more workshops and recruit an additional 2,000 workers in 2026, bringing its total workforce to nearly 16,000.

Removing Bottlenecks

Despite the growth, the industry faces challenges such as export market fluctuations, high logistics costs, and a shortage of high-skilled labor. At a provincial administrative meeting in early March 2026, Chairman Tran Duy Dong emphasized the implementation of a “Green Lane” mechanism to support strategic investors and major projects. He directed a 30% reduction in both the time and compliance costs for administrative procedures related to business operations.

For 2026, Phu Tho aims for industry and construction to be the primary growth engines, targeting an IIP increase of 18.7%. This sector is expected to contribute approximately 7 percentage points to the province’s overall GRDP growth target of 11%.

To achieve these objectives, the province will prioritize resolving existing bottlenecks and barriers, creating the most favorable conditions for businesses and investors to expand their production and operations. This includes the flexible application of mechanisms related to taxation and land use, as well as supporting high-quality human resource training tailored to corporate needs—specifically assisting enterprises in accessing medium and long-term capital sources.

In addition, the province is implementing a synchronized suite of solutions to improve underperforming sub-indices within the PCI, PAR INDEX, PAPI, and SIPAS frameworks. Efforts will be focused on enhancing transparency, promoting online administrative procedures, and accelerating digital transformation. By applying technology in governance and strengthening dialogue, the province aims to significantly elevate the local investment environment.

Determined to reach the double-digit growth target, Chairman of the Provincial People’s Committee Tran Duy Dong has directed the Industrial Zones Management Board, the Investment Promotion and Enterprise Support Center, and relevant departments to enhance coordination in investment promotion. Key priorities include effectively connecting labor supply and demand and selecting industrial zone infrastructure investors with strong financial capacity and management expertise. The province is also focusing on the "Industrial Zone and High-Tech Industrial Zone Development Project to 2030." Immediate steps include researching the proposal to transform Yen Lac Industrial Park into a high-tech hub, commencing construction on three new industrial parks in 2026, and finalizing the subdivision planning for eight industrial zones as directed.

With positive results from the very first months of the year, coupled with the province’s synchronized and flexible management solutions, the local economy is showing clear signals of a robust recovery. The industrial sector continues to maintain its growth momentum, creating a vital foundation for the province’s socio-economic development goals in 2026 and the years to follow.

Ngoc Tuan