Industry leads Phu Tho's growth trajectory as agriculture adapts to volatility

Industry leads Phu Tho's growth trajectory as agriculture adapts to volatility

A report released by Phu Tho People's Committee paints a bright socioeconomic picture with strong signs of growth, structural transformation, and rising production capacity.

Building on this momentum, the province has set ambitious targets for 2026, aiming for rapid, sustainable development and the creation of new growth drivers.

In 2025, Phu Tho’s economy has maintained a positive growth trajectory, with each quarter outperforming the previous one. The province’s regional GDP is estimated to grow 10.3 per cent on-year, exceeding both its own target and the government’s assigned benchmark (10 per cent). This is also the highest growth rate among all provinces in the midlands and Northern mountainous region.

The regional GDP at current prices is estimated at VND409.6 trillion ($16.4 billion), up more than VND53 trillion ($2.1 billion) on-year. GRDP per capita has climbed 13.8 per cent to VND110.7 million ($4,400), equivalent to an additional VND13.4 million ($52) per person.

The economic structure is continuing to shift towards modernisation: industry/construction accounts for 54.6 per cent, services for 32.5 per cent, while agriculture-forestry-fisheries has narrowed to 12.9 per cent.

The report stated that industry remains the primary engine of provincial growth. Production across major industrial parks has remained stable, while foreign-invested projects in electronics, precision engineering, and electrical equipment are operating steadily, contributing significantly to overall results.

The industrial production index is forecast to rise 26.8 per cent this year, with manufacturing/processing alone increasing 29.3 per cent, continuing to anchor the provincial economy. Several key products have recorded strong increases, highlighting improved production capacity: electricity output (up 33.9 per cent), laptops (32.3 per cent), animal feed (26.3 per cent), cement (25.5 per cent), ceramic tiles (19.3 per cent), and electronic components (21.5 per cent).

Some products saw slight declines, such as automobiles (down 4.4 per cent) and motorbikes (down 5 per cent), due to competition from electric vehicles and a saturated consumer market.

Despite facing extreme weather and African swine fever, agriculture-forestry-fisheries has performed relatively well. Productivity and output of major crops such as rice, maize, vegetables, tea, pomelo, and bananas have risen compared to 2024.

Livestock production has continued shifting towards concentrated, technology-driven, and organic-oriented models. Poultry flocks have grown strongly, and cattle has remained stable. Buffalo herds have slightly decreased, and pig production has been affected by disease outbreaks.

Aquaculture has grown steadily with nearly 20,000 hectares under cultivation and output reaching nearly 84,000 tonnes, up 5.3 per cent. Forest plantation, care, and protection have been well implemented, raising forest cover to 43.52 per cent.

The New Rural Development Programme continues to make its mark. By the end of 2025, Phu Tho had 84 out of 133 communes meeting new-rural standards (63.2 per cent), including three advanced NTM communes, and 525 model residential clusters.

In 2025, commerce, services, and tourism have experienced a strong recovery. Total retail sales and consumer service revenues have reached over VND200 trillion ($18 billion), up 14.8 per cent.

Import-export activities remain stable: exports have reached $36.8 billion (up 5.1 per cent), and imports $36 billion (up 3.7 per cent).

Tourism has been a highlight, with diversified products, events, and new experience-based offerings. The province has welcomed an estimated 14.5 million visitors (up 11 per cent), generating VND14.8 trillion ($590 million) in tourism revenue. Transport, warehousing, and logistics services have grown sharply with revenues of nearly VND 20 trillion (up 18.7 per cent).

Targets for 2026: breakthroughs in growth and infrastructure

Looking ahead to 2026, Phu Tho has set several key goals. Regional GDP growth (at 2010 prices) is targeted at 11 per cent; regional GDP per capita at VND126.5 million ($5,000); and average monthly income at VND6.3 million ($250).

Total budget revenue is projected to exceed VND55.7 trillion ($2.2 billion), with public investment disbursement to hit its planned target. The province aims to reduce poverty by 0.5-1 percentage points and increase the number of active enterprises to 33,000 by the end of 2026.

The report outlines several priority action groups:

• Boost administrative reform and improve the investment environment: The province is looking to simplify administrative procedures, cut unnecessary regulations, and reduce compliance costs for businesses. Transparency will be strengthened to make information more accessible to investors.
• Develop human resources and promote innovation and digital transformation: Phu Tho views science-technology as a new growth engine. It aims to train high-quality human resources while accelerating technology adoption in production, management, commerce, and services.
• Accelerate investment in modern infrastructure, including digital infrastructure for comprehensive digital transformation, industrial zone infrastructure to attract foreign investment, high-tech logistics infrastructure to improve connectivity, regional and interregional transport systems, and new urban development following green and smart principles.
• Restructure industry towards modernisation: The province will prioritise core sectors such as electronics, supporting industries, precision engineering, and high-end automobile-motorcycle manufacturing. Meanwhile, traditional industries like chemicals, paper, fertilisers, and building materials will be supported to adopt greener, low-emission technologies.
• Expand commerce, services, and logistics: Efforts will focus on trade promotion, developing modern distribution networks, and boosting e-commerce. High-tech, multimodal logistics will be prioritised to reduce costs and enhance competitiveness.
• Restructure agriculture and promote sustainable rural development: Plans include developing large-scale commodity production zones, strengthening OCOP development; improving processing and traceability; promoting biosecure livestock farming; applying technology in intensive aquaculture; and leveraging reservoirs and rivers for fishery development.

With the strong results achieved in 2025 and strategic direction set for 2026, Phu Tho is steadily consolidating its position as an emerging growth pole in the midlands and Northern mountainous region, laying a solid foundation for rapid and sustainable development in the years ahead.

VIR