Industry in the province has grown significantly in recent years, in line with the country’s overall industrial development strategy and the province’s socioeconomic development needs. Industry restructuring coupled with growth model innovation has established industries with potential and strengths, providing high added value, based on effective mobilization of resources from economic sectors.
Cam Khe Industrial Park’s Hwa Sung Vina Co., Ltd. focuses in the production of electronic components for export.
Lay the groundwork for long-term growth
The industry is a driving force in shifting the province’s economic structure toward industrialization and modernization, and it plays a vital role in socioeconomic development. The industrial output index improved by 9.85% on average between 2018 and 2023, with the added value of the industrial sector reaching 11.72%. Total industrial development investment capital exceeded VND35,000 billion, accounting for 26.4% of total social investment capital in the region.
The volume and structure of industrial output are steadily shifting in a favorable direction, the fraction of non-state-owned industry is fast expanding, and product quality and competitiveness are improving. The province has progressively grown and constructed industries with important products based on its strengths and qualities, increasing investment attractiveness and effective utilization of raw resources and fuel sources.
The composition of industrial groupings is steadily evolving toward increasing the number of processing, manufacturing, and supporting industries while lowering the proportion of mining sectors. To today, the processing and manufacturing industry accounts for 93% of the value of industrial production, with electronic components accounting for more than 42%.
Currently, Phu Tho is actively encouraging sectors that benefit from the province’s comparative advantages, such as the electrical - electronics industry, agricultural and forestry product processing, building materials manufacturing, chemical industry, and textile industry wear... Some items have grown output significantly since 2020, including: sports shoes (1.9 times), completed aluminum products (1.5 times), ceramic tiles (1.2 times), electrical products (1.8 times), and phone components (1.8 times).
Electronic component production is a manufacturing industry with a significant economic impact and a significant spillover effect on other industries. The electronics industry accounts for a considerable share of the province’s export trade. The export value of electronic components is expected to exceed USD10 billion by 2022. The electronics sector has attracted a lot of large-scale investment projects with high added value and cutting-edge technology, which has boosted growth. We may highlight BYD Vietnam Electronics Co., Ltd.’s electronic component manufacturing projects, which have a registered investment capital of more than USD269 million, Hanyang Digitech Vina Co., Ltd.’s capital of USD90 million, and Co., Ltd. Innovation Future Vietnam’s capital of USD36.5 million...
Many investors are turning to the third market in the context of overall market swings, and the global supply chain is being altered in response to the trend of moving supplies to lessen dependency on one nation. This is both an opportunity and a challenge for businesses, particularly those producing key provincial products, to participate more deeply in the global supply chain, increase exports to high-demand markets, and improve quality capital capacity, management experience, and production and technology levels.
SeShin Vietnam Co., Ltd., Thuy Van Industrial Park, exports apparel sewing lines.
Develop priority and beneficial industries
To generate momentum for strong industrial growth, the province focuses on attracting investment and eradicating challenges and hurdles in enterprise production and commercial operations.
The establishment of industrial zones and clusters benefits socioeconomic development by accelerating the process of industrialization, modernization, and transformation of development space, supporting industry and regional links, and laying the groundwork for long-term progress. Four industrial parks have opened in the province, attracting 170 investment projects, including 90 domestic investment projects with a total registered investment capital of more than VND20,700 billion and 80 investment projects. Foreign investment totals more than USD1,980 million in registered investment capital.
According to Mr. Nguyen Ngoc Hanh, Chairman of the Provincial Industrial Park Management Board, "industrial parks have attracted a lot of investment projects in industries with high added value, such as the manufacture of automotive and motorcycle components, electronic components, renewable energy... The province’s industrial parks prioritize attracting production and business projects from industries that are consistent with the province’s industrial development orientation, environmentally friendly, high technology, large-scale projects that can contribute significantly to the budget, and consistent with the nature of each industrial park. As a result, the province’s industry will be able to expand more rapidly, effectively, and sustainably, gradually reducing the width, developing depth, and enhancing productivity, quality, and product competitiveness.
One of the main tasks and solutions to implement, according to Plan No. 4601-KH/UBND dated November 15, 2022 of the Provincial People’s Committee on industrial development of Phu Tho province in the period 2021-2025, is to promote Strengthen the development of industries in the direction of increasing added value and accelerating the progress of investment projects.
Focus on developing key sectors and foundation industries with development benefits in particular. Electronics - telecommunications sector; supporting industry are among the key industries for growth. Chemical industry, fertilizer, construction materials production, wood processing, forest products, textiles and garments - leather and footwear, mechanical engineering, metal production, food and beverage processing, new energy industry - renewable energy, mineral exploitation, rural industry and processing industry are among the foundation industries with development advantages.
Identify and develop groupings of priority industries and foundation industries with development advantages that contribute to the promotion of each region’s and locality’s potential and circumstances; Attract and grow new enterprises and industrial projects in a focused region suited for raw material processing. As a result, enterprises may focus on enhancing efficiency, quality, and added value, using higher technology, and engaging more fully in the global value chain, resulting in a significant shift in economic structure and a huge and dependable source of revenue for the state budget.