In the early years after the province's re-establishment, Vinh Phuc focused on attracting investments broadly, targeting labor-intensive projects to create jobs for locals and boost budget revenue. However, in recent years, the province has adjusted its investment strategy toward a more proactive, selective, and focused approach. It now prioritizes key industries and sectors, fostering close and effective cooperation with strategic investors and multinational corporations. This strategy aims to produce high-value-added products, ensure efficient and sustainable use of resources, and create job opportunities for skilled labor.
Leveraging its strengths and potential, Vinh Phuc has transformed over nearly three decades since its re-establishment into a standout investment hub in northern Vietnam and a significant contributor to the State budget. Over the past 10 years, particularly in the 2016–2021 period, the province exceeded its investment attraction targets, with total newly registered and additional FDI capital reaching $3.173 billion and DDI projects drawing VND 59.019 trillion. Initially, the province had only one industrial park, eight FDI projects, and one DDI project. Today, it boasts 473 FDI projects with registered capital exceeding $8.3 billion from 20 countries and territories, 841 DDI projects with total investment exceeding VND 142.5 trillion, and 17 established industrial parks spanning over 3,140 hectares, of which nine are operational and host 495 active projects. Notably, in recent years, many strategic investors leading global supply chains in industries such as automobiles, motorcycles, and electronic components have explored the province's investment environment. They have proposed partnerships in energy, green investment, and "Net Zero" commitments. Key names include Honda Vietnam, Toyota Vietnam, Samsung Vietnam, Signetics Korea, Sojitz, and Sumitomo. These collaborations significantly contribute to sustainable development and enhance the added value of the local economy.
Viet Nam Precision Industrial No.1 Co., Ltd:A Trusted Partner of Leading Domestic and International Manufacturing Enterprises
Established in 2001 on an area of over 16 hectares in Khai Quang Industrial Park, Viet Nam Precision Industrial No.1 Co., Ltd (VPIC1) is a prominent foreign-invested enterprise contributing significantly to the development of Vinh Phuc province. The company, a wholly foreign-owned subsidiary of Taiwan's Eurocharm Group, specializes in manufacturing components and parts for automobiles, motorcycles, snowmobiles, and medical devices. Through continuous technological and technical innovation and investment in modern machinery and equipment, VPIC1 has enhanced productivity and product quality. Over 20 years of operation and development, the company has established its brand, becoming a leader in implementing policies to increase localization rates and foster the growth of supporting industries in the province. VPIC1 is a trusted partner of renowned companies such as Toyota, Honda, Ford, Piaggio, Yamaha, and France Bed, etc. In recent years, the company has achieved annual revenue of over $150 million, contributed more than VND 100 billion to the State budget annually, and created jobs for nearly 3,500 workers. Starting with an initial investment of $5 million, VPIC1's total investment has now reached $100 million.
These impressive figures indicate that the period from 2016 to the present has been marked by the implementation of numerous new policies and laws, creating a more transparent and favorable legal framework for investment and business activities. These changes have enhanced enterprise autonomy in production and business operations. Additionally, the province has made significant investments in the development of industrial park infrastructure. Some industrial parks have proactively secured clean land reserves at reasonable infrastructure lease rates, drawing the attention of foreign investors. However, over the past decade, the number of strategic investors in Vinh Phuc has remained modest compared to other provinces in the Red River Delta region and does not yet match the province’s potential. Furthermore, key industries are showing signs of decline, gradually losing their competitive edge. According to analysis by functional agencies, the main reasons include diminishing advantages in attracting investment, such as land, resources, industrial park land lease rates, support mechanisms, and administrative reforms. These advantages have been narrowed due to the intense competition and rapid development of other localities, particularly neighboring provinces, which directly impact Vinh Phuc’s competitiveness. Moreover, inconsistencies and lack of synchronization in laws related to investment, construction, land, and the environment have created challenges during implementation, delaying project progress and affecting the province's investment environment. Land clearance and compensation remain difficult, industrial infrastructure costs are rising, and some provincial policies on investment attraction are not fully aligned with practical needs. Additionally, the quality of the workforce remains low, with a severe shortage of highly skilled labor.
With the robust foundation established over nearly three decades since the province's reestablishment and favorable domestic and international developments, Vinh Phuc is poised to attract a new wave of strategic investors while supporting the strong expansion of existing strategic investments. For the 2023–2030 period, the province aims to attract additional FDI capital of $2–2.5 billion and DDI capital of VND 20,000–25,000 billion. Vinh Phuc seeks to draw 1–5 multinational corporations from the Fortune Global 500 into the province and encourage investments from major economic groups with substantial financial resources and enterprises ranked among Vietnam’s top 500 largest companies. For foreign investors, the province prioritizes attracting globally recognized brands with significant financial capabilities, a commitment to stable, long-term investments, and a focus on integrated and supportive manufacturing. It discourages foreign projects lacking long-term investment commitments, as well as small-scale projects leasing factory space. Instead, it prioritizes investors with long-term strategies, strong corporate social responsibility, advanced technologies, and a reliance on local and Vietnamese inputs. The province also favors investors with plans for joint ventures and production linkages with domestic enterprises. For domestic investors, Vinh Phuc focuses on inviting major economic groups with robust financial capabilities to invest in projects within key sectors, especially agriculture and trade-services industries.
To achieve its objectives, Vinh Phuc province is proactively implementing fundamental and breakthrough solutions to create new competitive advantages and attract strategic investors. The province plans to develop tailored mechanisms and incentive policies for specific investors and sectors, alongside further development of industrial zones and social infrastructure. Efforts will focus on improving the business environment through administrative reform, enhancing transparency in state management related to investment, enterprises, and taxation, and facilitating easy access to information for businesses and investors. Investment promotion will be professionalized and diversified, with an emphasis on on-site promotion and the “three-party cooperation” model involving managers, investors, and consultants. Additionally, the province will encourage the socialization of consultancy services for policy, legal, and market development support. It will also strengthen state management of investment projects and actively assist investors in overcoming challenges during project implementation.
Phung Hai
