Phu Tho targets future-focused investors

Phu Tho province is adjusting its investment strategy to draw next-generation capital, using strong economic growth and digital transformation as main advantages.

Recent performance highlights the shift. During the first half of 2026, the province’s regional GDP expanded by 10.2%, ranking highest in the Northern Midlands and Mountainous Region and seventh nationwide. Industrial output jumped 25.1% year-on-year, while state budget revenue reached $1.39 billion, a 21.5% increase from the previous year.

Foreign investment surges fivefold

Foreign direct investment saw significant gains. Phu Tho secured $1.77 billion in registered FDI in the first six months of 2026, nearly five times the amount from the same period last year and already exceeding its annual target by 10%. Public investment disbursement hit 37.3% of the annual plan by early July, surpassing the national average.

Digital infrastructure improvements accompanied these gains. The province completed all tasks under Politburo Resolution No. 57-NQ/TW on science, technology, and national digital transformation. Three new data centers became operational, and Phu Tho was among the first three localities to meet the resolution’s benchmarks.

New model for investor support

The Phu Tho Investment Promotion and Enterprise Support Centre now operates under a revised model introduced in early 2026. Its role includes developing future projects, proposing policies to attract high-tech investment, and strengthening ties between local firms and foreign-invested enterprises to integrate them into global supply chains.

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Provincial officials increased direct engagement with investors. In the first half of the year, they met with executives from YCH Singapore, Meiko, Central Retail, MM Mega Market, Eurowindow, and Stavian. Site visits from Toyota Vietnam, Viettel Post, and businesses from Japan, South Korea, and China followed. International outreach included investment promotion missions to China, Spain, Finland, and Sweden, along with a conference in Ho Chi Minh City in late May.

At the event, Tran Duy Dong, chairman of the Phu Tho People’s Committee, shared the province’s long-term goals. He stated that by 2030, Phu Tho aims to become a key growth pole in the Capital Region and a major hub for industry, trade, and logistics. By 2045, the province hopes to achieve centrally governed city status with modern infrastructure and a thriving economy.

Small business owners in Phu Tho’s industrial parks face a mixed outlook. The shift toward high-tech investment could create opportunities but also intensify competition. Many local firms still depend on low-margin manufacturing, and without upgrades, they may struggle as the province targets more advanced industries. Training programs for 10,000 executives by 2030 aim to ease the transition, though challenges remain.

Partnerships expanded in the first half of 2026. The province signed cooperation agreements with Toyota Vietnam and Imarket Korea. The Investment Promotion and Enterprise Support Centre also formalized memoranda of understanding with Central Retail Vietnam, MM Mega Market, Nafoods Group, and several South Korean and Chinese partners.

Aftercare becomes a priority

While attracting new investment remains important, Phu Tho is also focusing on supporting existing investors. The province addressed 53 of 69 issues raised in previous business dialogues, resolving nearly 77% of concerns. More than 79 companies received assistance with investment procedures, business registration, and policy reforms.

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A weekly “Business Coffee” program connects provincial leaders with business owners to tackle operational hurdles. The province is also broadening training programs for small and medium-sized enterprises, covering corporate governance, digital transformation, and international integration.

Digital tools are becoming more central. The investphutho.vn portal now acts as a one-stop hub for investment opportunities, planning, incentives, and administrative procedures. Multilingual promotional materials and investment videos in Vietnamese, English, Japanese, Korean, and Chinese have been produced to widen the province’s appeal.

Phu Tho plans to step up its investment promotion efforts with an August conference and missions to Russia, Norway, Denmark, the Czech Republic, Austria, and France. Priority sectors include high technology, electronics, manufacturing, logistics, industrial park infrastructure, clean energy, and modern services, targeting markets like Japan, South Korea, China, Taiwan, Singapore, and Thailand.

The province is moving from signing agreements to ensuring projects move forward. The Investment Promotion and Enterprise Support Centre will continue tracking memoranda of understanding and assisting investors through project preparation and execution.

Union Assurance’s recent recognition reflects the broader trend of innovation in regional business practices.