Accelerating Public Investment Disbursement, Driving Economic Growth

By the end of November 2025, Phu Tho had disbursed approximately VND34,000 billion in public investment, reaching 95% of its annual plan and equal to 1.82 times the allocation assigned by the Prime Minister. This result reflects the province’s political commitment and administrative capacity while creating a foundation to drive economic growth, improve the investment environment, and attract both FDI and domestic investors.

Public investment remains a key driver helping Phu Tho sustain growth amid rising infrastructure demand

Public investment remains a key driver helping Phu Tho sustain growth amid rising infrastructure demand following the provincial merger. In 2025, the total public investment plan assigned to the province is VND35,940 billion, including VND5,630 billion carried over from the previous year. Allocations prioritized projects with strong spillover effects, infrastructure connectivity, ongoing works, and regional development tasks.

To achieve one of the highest disbursement rates in the country, the province has carried out coordinated measures that include establishing a steering committee for key projects, strengthening the disbursement task force, and assigning heads of localities and units direct responsibility for project progress. Land clearance efforts mobilized the entire political system, with many localities committing to deliver clean land to investors based on specific timelines.

The province also regularly reviewed slow-moving projects and reallocated funds to those with higher disbursement potential to ensure efficient use of state resources. As a result, public investment flowed quickly into the economy, supporting infrastructure construction, creating jobs, and generating spillover effects across multiple production and business sectors.

Alongside disbursement, the province’s investment promotion was carried out in a targeted and focused manner. Initiatives such as the Business Coffee program, a special task force supporting businesses, and a hotline for resolving obstacles proved effective, shortening administrative processing times and promptly addressing business challenges.

Indices such as the Provincial Competitiveness Index (PCI), Public Administration Reform Index (PAR), Satisfaction Survey on Public Administration Services (SIPAS), and the Provincial Governance and Public Administration Performance Index (PAPI) were assigned to specific agencies for quarterly monitoring and improvement. Clear accountability led to tangible progress in administrative reform and increased satisfaction among citizens and enterprises.

Thanks to a more transparent business environment, capital inflows into the province have surged. In 2025, Phu Tho has attracted US$1.2 billion in FDI, achieving 114.2% of the plan and rising 38.5% over 2024. Domestic investment also increased sharply, estimated at VND220,000 billion, 3.3 times higher than the previous year. The province has simultaneously promoted its investment potential by sending promotional materials to Vietnamese embassies worldwide and expanding connections with European, American, and Australian markets.

Phu Tho has continued to prioritize support for enterprises and labor market development. In the first 11 months of 2025, 4,500 new businesses were established, reaching 128.6% of the target and increasing more than 44% compared to the same period in 2024. About 1,000 businesses resumed operations, reflecting strong market confidence.

Phu Tho’s coordination of labor supply and demand has also made significant progress. In 2025, the province has facilitated employment for 59,100 people, achieving 115.8% of the target, with more than 6,800 workers sent abroad under contracts. Around 4,500 work permits for foreign employees were newly issued or renewed, supporting the expansion needs of many FDI enterprises.

High disbursement rates, increased investment attraction, and an improved business environment indicate that Phu Tho is entering a new development phase aimed at more sustainable growth. The province targets continued acceleration of key infrastructure projects, ongoing administrative reform, enhanced competitiveness, and full utilization of public investment as a leading driver of economic growth in 2026 and beyond.

By Thanh Nam, Vietnam Business Forum