Establishing Industry as Key Locomotive Driving Economic Growth

Despite challenges, thanks to state policies and support from Vinh Phuc province, enterprises in the industrial sector have overcome obstacles and boosted production. Industrial output continues to drive the province's overall economic growth.

The manufacturing of electronic components at Jahwa Vina Co., Ltd

By September 2024, Vinh Phuc's industrial production showed strong growth across all key indicators. The Index of Industrial Production (IIP) rose 12.67% year-on-year, the second highest increase since 2020. Key products saw good growth, including non-metallic minerals (+17.84%), metal manufacturing (+7.89%) and processing (+7.5%).

The production of electronic components, a key sector contributing around 50% to the province's industrial growth, has seen much improvement with a surge in orders. In September 2024, revenue from electronic components rose 23.18%, driving a 15.35% increase in the industry index for the first nine months. Many foreign-invested firms are now part of the global supply chains for major corporations like Samsung, Apple and Dell.

This success is attributed to a combination of support measures, streamlined production and strong consumption promotion across all sectors. Since early 2024, most foreign-invested electronic component manufacturers from Japan, Korea and Taiwan (China) have embraced advanced technology, automation and Industry 4.0 solutions. As a result, despite using fewer workers, productivity has increased, product quality has improved and large orders from foreign partners are met on time. Many products are now deeply integrated into the global supply chain and recognized by multinational corporations for their high quality.

In addition to the growth in electronic component production, the motorcycle manufacturing sector has also rebounded, with an estimated 8.28% increase. Despite rising raw material costs and a sluggish real estate market, strong efforts to address challenges and accelerate investment disbursement have led to a 7.4% year-on-year increase in the construction industry's added value.

To achieve its 2024 industrial growth targets, Vinh Phuc will focus on improving the investment and business environment, streamlining administrative procedures, and ensuring transparency. Key solutions include advancing digital infrastructure and services, offering online public services to reduce costs, and supporting businesses in their digital transformation to enhance competitiveness and productivity. The province will also continue to monitor and address challenges, ensuring industrial establishments operate efficiently and at full capacity. Efforts will be made to attract investment in industrial park infrastructure, with a focus on specialization and high-tech development.

Vinh Phuc will also encourage investment partnerships between domestic and foreign enterprises, leveraging technology and production expertise. The province aims to foster the growth of science and technology enterprises and develop technology markets. Regional cooperation will be strengthened to drive shared growth, while vocational training will be enhanced to meet business labor needs. In the long term, Vinh Phuc will focus on attracting large investors and high-value projects, while maintaining strong ties with traditional North Asian markets and targeting new opportunities in Western Europe and North America, where capital and technology are abundant.

By Tran Trang, Vietnam Business Forum