Industry - The journey of rapid growth after mergers

Following the merger, Phu Tho province's industry is showing strong growth potential, becoming a leading growth engine and making a significant contribution to the province's GRDP. With a comprehensive planning orientation, connected infrastructure, a favorable investment environment, and a strategic vision, the industrial sector is expected to continue to assert its key role in socio-economic development.

Growth drivers

At 7 a.m., at an electronics component assembly plant in Hoa Binh ward, south of the province, the conveyor belt operates steadily, the green and red signal lights flashing in rhythm with the workers' movements. Outside, containers roll out of the yard, heading straight for Hai Phong port. This bustling rhythm is not only a picture of daily production, but also a symbol of a new breakthrough phase for Phu Tho's industry after the province's merger.

Previously, each locality and region operated in a fragmented and uncoordinated manner, but now a "unified industrial space" has taken shape. The impetus from the merger of provinces and the implementation of a two-tiered local government system has opened up a larger market, more synchronized planning, and a more streamlined administrative mechanism, all of which create the foundation for accelerated growth.

Workers at Sankoh Co., Ltd. - Left Bank of Da River Industrial Park (Hoa Binh Ward) are enthusiastically engaged in production.

At R Vietnam Technical Research Co., Ltd., a 100% Japanese-owned enterprise located in the industrial park on the left bank of the Da River (Hoa Binh ward), more than 800 workers are enthusiastically engaged in production amidst a competitive spirit to celebrate National Day on September 2nd and to welcome the First Congress of the Phu Tho Provincial Party Committee, term 2025-2030.

Having been involved with the local area for two decades, the company maintains efficient production of high-quality optical lenses used in cameras and camcorders. Mr. Nguyen Long, the company's manager, stated: "After the merger, the transportation and logistics infrastructure has been comprehensively invested in, helping us reduce transportation costs and expand our market. The abundant and diverse workforce also greatly facilitates the company's ability to scale up production."

The impetus doesn't come solely from individual factories. The province's new scale brings clear advantages, including a larger investment market, streamlined administrative procedures, and more unified planning. These are crucial factors in attracting foreign businesses, which are always interested in the transparency and interconnectedness of the investment environment.

In fact, the province's economic growth picture will only truly become clear after the first half of 2025, with GRDP increasing by 10.09% year-on-year; industry and construction increasing by as much as 15.32% (industry alone increasing by 16.2%). The GRDP at current prices will reach 186.4 trillion VND.

The economic structure has also shifted significantly: Industry and construction account for 46.58% of total GRDP, with industry alone reaching 40.92%. These figures confirm that industry is becoming the leading growth engine of Phu Tho after the merger.

Comrade Tran Quang Tuan - Director of the Department of Industry and Trade, said: “From 2026, the province strives to maintain double-digit economic growth. The focus is on removing obstacles related to land, administrative procedures, supporting businesses, and boosting exports, with a continued strong focus on industrial development. The consistent viewpoint of the provincial leadership is to not let administrative procedures slow down the pace of production and business.”

The Ba Thien Industrial Park is conveniently located near the Noi Bai - Lao Cai expressway and just over 20km from Noi Bai International Airport.

The boost from connectivity and the investment environment.

Before the merger, Phu Tho, Vinh Phuc, and Hoa Binh – three localities with their own strengths – had industrial sectors that were not yet developed to their full potential. Vinh Phuc excelled in automobile and electronics assembly but lacked raw materials and manpower; Phu Tho had rich experience in agricultural processing but was limited in technology; and Hoa Binh had land, energy, and raw materials but lacked processing infrastructure. These three "drumbeats" could not yet harmonize into a single "industrial symphony."

Following the merger of the three provinces, a vast industrial space has opened up, connecting the plains surrounding Hanoi to the mountainous Northwest region. In particular, the "one-stop shop" mechanism for investment, land, and environmental issues is expected to shorten project preparation time and reduce informal costs – a major advantage in the eyes of investors.

Several Japanese corporations that have recently invested in the province have praised the province's swift handling of investment procedures, as well as its transportation infrastructure that directly connects to Noi Bai Airport and Hai Phong seaport. This is an advantage that not many localities in the region possess.

At the end of July, in the industrial park on the left bank of the Da River (Hoa Binh ward), the Meiko Hoa Binh Printed Circuit Board (PCB) Manufacturing and Fabrication Plant solemnly inaugurated its first phase with an investment of 200 million USD. At the ceremony, Mr. Atsushi Satake, Executive Vice President of Meiko Group, expressed his desire to continue receiving support from the province to soon implement phase 2 with a total investment of up to 350 million USD.

In fact, the investment environment has also been improving. Immediately after the merger, the leaders of the Provincial Party Committee and the Provincial People's Committee met with, inquired about, encouraged, and resolved difficulties for businesses on numerous occasions. Directives on the development of the private economy were quickly concretized through preferential policies on land, credit, infrastructure, etc. In particular, the province focused on attracting strategic investors, considering leading enterprises as the "nucleus" to create a ripple effect.

A representative from the Provincial Business Association commented: "Open spaces are the foundation, but acceleration must rely on technology, human resources, and long-term planning. When businesses take the lead, the ripple effect throughout the production and supply chain will be significant, creating momentum for the entire local business community."

Besides attracting FDI, the province encourages the development of supporting industries, creating strong connections between domestic and foreign businesses. From the production of automotive components, electronics, and new materials to high-tech agricultural processing, all are forming important links in the new industrial value chain.

Expectations for a breakthrough during the golden period.

In previous terms, Phu Tho, Vinh Phuc, and Hoa Binh provinces all identified industry as a strategic direction. For the 2020-2025 term, these localities prioritize attracting high technology and developing clean industries... However, administrative boundary barriers prevent them from fully exploiting their potential and advantages.

The 2025-2030 term, marked by the Phu Tho Provincial Party Congress, is considered a significant milestone. Industry continues to be identified as a "strategic spearhead," contributing not only to maintaining double-digit GRDP growth but also to improving the quality of growth, increasing domestic value, and forming a multi-axis industrial center in the midland and Northwest regions.

Electronic component manufacturing at Thien Quang Electronics Joint Stock Company - Binh Xuyen Industrial Park.

According to economic experts, mergers create economies of scale, but to turn these advantages into achievements, a clear strategy is needed in industrial spatial planning. This requires the formation of closely linked industry clusters, the development of supporting industries, the training of high-quality human resources, and the assurance of environmental sustainability.

Entering a new phase, the province aims to focus on developing high-tech manufacturing and processing industries, boosting the energy and new materials industries, and accelerating supporting industries, all geared towards exports.

Accordingly, regional transportation infrastructure is also a strategic priority. Many key routes have been, or are being, expanded and newly invested in, which are expected to help the province become an important transit point between the Red River Delta and the Northwest region.

Furthermore, the First Congress of the Phu Tho Provincial Party Committee, for the 2025-2030 term, is expected to issue groundbreaking resolutions on administrative reform, business support, high-quality human resource training, and encouragement of innovation in production. These will be the "leverages" to propel the province's industry into a golden age, faster, with higher quality, and more sustainably.

A journey of rapid growth is unfolding, where industry is not only the engine of growth, but also the source of confidence and expectation, a crucial pillar, creating a solid foundation for economic development and the future of an entire new land.

Hong Trung

Source: https://baophutho.vn/cong-nghiep-hanh-trinh-but-toc-sau-sap-nhap-240455.htm