Vinh Phuc is solidifying its position as a major driver of economic growth and investment in the North. From 2025 to 2030, it aims to become a hub for industry, services and modern urban development. Achieving this goal will require strong collaboration between the government and businesses to drive economic and investment breakthroughs.
Vinh Phuc province and Vingroup sign a cooperation deal on green transformation for the 2025–2030 period
In 2024, Vinh Phuc's Gross Regional Domestic Product (GRDP) grew by 7.52%. GRDP per capita rose from VND130 million in 2023 to VND141.3 million in 2024, highlighting the province’s sustainable economic development. Notably, total state budget revenue reached VND32,100 billion, including VND26,000 billion from domestic sources. These strong figures lay a solid foundation for Vinh Phuc to sustain its growth momentum in 2025, aiming for double-digit expansion.
A rising investment destination for sustainable development
Vinh Phuc has emerged as a favored destination for both domestic and foreign investors, thanks to its open policies and favorable business climate. In 2024, the province attracted US$600 million in foreign direct investment (FDI), surpassing the target by 50%. In 2025, Vinh Phuc aims to secure US$800 million in FDI and VND5,000 billion in domestic investment (DDI), with a strong focus on high-tech industries, supporting industries, and smart city development.
To achieve this goal, Vinh Phuc has implemented key measures, including administrative reforms to streamline investment licensing and expedite legal support for businesses. The province is also making heavy investments in industrial park infrastructure and expanding regional transportation networks. The province has also offered attractive investment incentives, such as tax benefits, financial support and special policies for high-tech enterprises.
Investors show interest in the local business environment at a forum on green solutions for industrial parks and investment promotion in Vinh Phuc province
As a result, major corporations like Toyota, Honda and Piaggio, along with other investors from Japan, Korea and Europe, have chosen Vinh Phuc as a strategic investment destination.
Vinh Phuc is home to over 14,000 active enterprises, with 1,550 newly registered businesses in 2024, bringing a total registered capital of approximately VND13,000 billion. This growth highlights the province’s dynamic business environment and improving investment climate.
To further support business development, Vinh Phuc has introduced key initiatives, including financial assistance programs, access to preferential loans, and credit guarantee funds. The province is also driving digital transformation, helping businesses adopt technology to enhance efficiency. Efforts to strengthen supply chain connections link local enterprises with multinational corporations, creating opportunities in the global value chain. Furthermore, Vinh Phuc prioritizes high-quality workforce training to ensure a steady supply of skilled labor for key industries.
Efforts to become a hi-tech economic hub
Compared to provinces with similar development models like Bac Ninh and Hai Duong, Vinh Phuc benefits from its favorable location near the capital, a well-developed infrastructure system and a high-quality workforce. However, it faces intense competition in attracting FDI, particularly in high-tech industries.
To strengthen its position, Vinh Phuc is implementing policies that encourage investment in technology and innovation while enhancing connections with high-tech zones in Hanoi and Hai Phong. These efforts aim to solidify the province’s role as a leading destination for advanced industries.
Vinh Phuc is a prime destination for FDI investment
Despite its achievements, Vinh Phuc faces challenges, including infrastructure pressure as rapid urbanization demands urgent upgrades to the transport system and industrial zones, human resource competition with a growing need for highly skilled labor facing strong competition from neighboring provinces, and global economic fluctuations that may impact FDI inflows. To address these challenges, the province is implementing strategic measures such as investing in major infrastructure projects like highways, inland container depot (ICD) and green industrial zones, enhancing vocational training programs in collaboration with businesses to align workforce skills with industry needs, and fostering a more transparent investment environment while streamlining administrative procedures to boost competitiveness.
In 2025-2030, Vinh Phuc aims to become a modern industrial, service and urban economic center of the North. Key strategies include promoting high-tech industries by focusing on the production of electronic components, information technology and artificial intelligence; developing smart cities through investments in modern urban infrastructure to enhance the quality of life; strengthening international cooperation by connecting with global organizations and businesses to expand investment and economic development opportunities; and developing a green economy by prioritizing clean industries, renewable energy, and environmental protection. Vinh Phuc is at a pivotal moment to achieve a major breakthrough and advance alongside the nation. With strong efforts from the local government and the business community, the province has the potential to become a key economic growth hub for Vietnam in the next decade.
By Nguyen Bach, Vietnam Business Forum
Vietnamese
