Phu Tho Town Offering a Red Carpet to Investors

Phu Tho Town Offering a Red Carpet to Investors

With a history of over 100 years, Phu Tho is the oldest town in Vietnam. It was the capital city of the province for over 60 years. Phu Tho town has maintained its ancient and traditional features in combination with a new modern style, resulting from rapid economic development.

Dynamic economy

The town has seen a rapid progress in its economic development with an average growth rate of between 15 and 17 per cent. It has been driven by an increase of 12.6 per cent in the industrial and handicraft sector and 18.5 per cent in the services sector. In agricultural production, the town has boosted the restructuring of crops and animals, and scientific and technological application. As a result, the production value of agriculture and forestry increased from VND 60.3 billion in 2001 to VND 70.08 billion in 2005 (estimated). Food output rose from 11,592 tonnes in 2001 to 13,518 tonnes in 2005 (estimated).

In industrial production, the town has maintained a high growth rate. It has concentrated on manufacturing products with great advantages in terms of materials and consumption channels. Accordingly, the town has promoted investment in construction material production, garment making, kaolin mining and processing, tea and food processing. The town now has many companies, such as the Phu Tho Garment Company and the Thanh Ha Pottery Company.

As an old town with high population density and convenient communication conditions, featuring national highway 2, provincial and rural roads, Phu Tho town is a busy trade centre. Trade exchange value of the town increased from VND84.5 billion in 2001 to VND138.8 billion in 2004 and will reach an estimated VND163.8 billion in 2005.

Attracting investment based on existing potential

The town, however, is facing many difficulties during its industrialisation and modernisation process. Despite a high growth rate, absolute value remains low due to a low starting point. In addition, the industrial and handicraft sectors have developed in a fragmented manner. Since the establishment of Viet Tri City, Phu Tho town was no longer the capital town of the province. As a result, investment capital in infrastructure has dropped dramatically. In such a context, to make a breakthrough for the local economies, officials in Phu Tho town have decided to attract investment and develop its economy on a basis of its own potential.

Phu Tho town’s advantages include its infrastructure facilities, convenient communications conditions with upgraded roads, railway and waterways.

During the resistance war, Phu Tho town was a revolutionary base. After the war, the town was famous for its study tradition. It is now home to the Hung Vuong University, a teacher training college and many other technical and vocational training schools, which train workers and technicians not only for the town but also localities nearby. Also, the town has an advantage for developing eco-tourism.

To create favourable conditions for investors, the town's authorities have planned the building of the Go Gai industrial park on an area of 120 hectares near the Ho Chi Minh Highway, due to be built in the near future. The industrial park will be an ideal destination for investors. Local authorities will create the most favourable conditions for enterprises to get land for production in the park and in the future the park may be handed to the Management Board of Industrial Parks of Phu Tho province or an infrastructure development company in order to simplify procedures for investors, said Vu Van Thuy, of Phu Tho town People’s Committee.

Developing the industrial sector in combination with environmental protection, in the coming years, Phu Tho town will promote trade and services. Accordingly, the local authorities will develop hotel and restaurant services to attract visitors. This is also a long-term development strategy for the beautiful and poetic town in the northwestern region of Vietnam.