Investment attractions surge in Phu Tho after merger, noting it as a hotspot for foreign direct investment (FDI)
Foreign Investment Flows into Phu Tho Province, Vietnam
Phu Tho, a province in Vietnam located adjacent to Hanoi, has been attracting significant foreign investment, with over $651.7 million USD attracted in the first seven months of 2025. This investment includes 35 newly licensed projects worth $119 million USD and 45 existing projects receiving an additional $533 million USD in capital.
The diverse foreign investor base includes key markets such as the Republic of Korea, Japan, Singapore, France, Germany, Italy, Spain, Russia, the UK, and the US. The province is emerging as a high-tech manufacturing hub, particularly in electronics and semiconductor manufacturing.
One example of this growth is the UTI high-tech factory project, which specializes in electronic components and is part of a global supply chain from a South Korean technology firm. Another significant investment is the CNCTech Group's development of a 500-hectare industrial zone with 15 projects, aiming to create a comprehensive high-tech ecosystem beyond traditional industrial park models.
Major ongoing projects in Phu Tho include tourism initiatives like the Cuoi Ha cable car system, Serena Resort, and a golf course project spanning 65 hectares with a $38.1 million USD investment. The province hosts several industrial parks and clusters targeted for infrastructure development, including Tam Nong, Ha Hoa, Phu Ninh, Trung Ha II, Lap Thach I & II, and Tam Duong II (Zone B). The recently expanded Thang Long Industrial Park, formerly part of Vinh Phuc, is a focal site for high-tech manufacturing investments.
Phu Tho's strategic location adjacent to Hanoi and an improved business environment following an administrative merger uniting Phu Tho, Hoa Binh, and Vinh Phuc provinces have enhanced its attractiveness for foreign investors. The province is actively promoting investment through overseas missions and networking activities across key markets, aiming to further boost FDI inflows.
The domestic business sector in Phu Tho has shown impressive growth momentum, with a total of VNĐ13.8 trillion disbursed in the province, representing 73.8% of the plan set by the Prime Minister and 46.5% of total allocated planned capital. In the same seven-month period, the number of new enterprises in Phu Tho increased by 92.9%, with a total registered capital exceeding VNĐ26 trillion.
Phu Tho is committed to improving public service delivery to welcome enterprises and creating an open and transparent business environment. The abundance of natural resources in the province has captured the interest of major global investors, further boosting its appeal to foreign investors.
- Foreign investment in Phu Tho's housing markets is anticipated to rise due to the province's emergence as a high-tech manufacturing hub.
- The development of AI and finance sectors in Phu Tho could attract more investments from businesses in finance-focused markets like the US and Japan.
- The environmental impact of industrial growth in Phu Tho should be considered to maintain a balance between economic development and the preservation of natural resources, appealing to investors with an emphasis on sustainability.
- The growth in Phu Tho's sports infrastructure, such as the Cuoi Ha cable car system and the golf course project, could provide opportunities for investments from sports-related industries across various markets.
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