Phu Tho becomes favourite destination for investments

Phu Tho Industrial Zones Management Authority awarded an investment certificate to BYD Electronic

According to Phu Tho Industrial Zones Management Authority, large-scale ventures have been arriving in this province. In September, an investment registration certificate worth $269.1 million was granted to Hongkong-based BYD Electronic International to build an electronic factory in a 26-hectare land plot in Phu Ha Industrial Zone (IZ) in Phu Tho town.

Phase 1 of BYD Electronic factory has a design capacity of over 4.3 million tablets and 50 million optical prisms, has now started construction, and will go into trial production in April 2022. The second phase, with seven additional production lines finished in early 2023, will add more than 100 million tablets per year to the manufacturer’s capacity. Official production will be in January 2024 to increase the total labour of the two phases to more than 15,000.

In addition to BYD Electronic, many domestic and foreign enterprises have chosen IZs of Phu Tho to set up their production basements. Enterprises operating in those IZs have made an essential contribution to increasing the value of industrial production, export turnover, and budget revenue for the province.

Many companies in the local IZs have been high taxpayers. For example, Saigon-Phu Tho Beer JSC now accounts for 90 per cent of the payment of local state-owned enterprises of the province. Other non-state enterprises also have significant contributions to the state budget, such as CMC JSC, Tasa Ceramic JSC, and Cosmos Industrial No1 Co., Ltd.

Typical high taxpayers among foreign-invested enterprises (FIEs) are Namuga Phu Tho Technology Co., Ltd., JNTC Vina Co., Ltd., Hanyang Digitech Vina Co., Ltd., Almus Vina Co., Ltd., and Paldo Vina Co., Ltd.

Many large-scale and high-tech projects have chosen industrial zones in Phu Tho province

Increased revenues

According to Nguyen Ngoc Hanh, director of Phu Tho Industrial Zones Management Authority, by the end of June 2021, 167 enterprises registered in local IZs, including 87 FIEs. Of those, 131 enterprises are in stable production and business, 22 are in the process of investment and infrastructure construction, and seven others are installing machinery and equipment and in testing production, expected to come into operation by the end of this year.

“Province-based enterprises paid around VND360 billion ($15.6 million) to the state budget, their export value was estimated at $2.2 billion, equalling 157 per cent compared to the same period last year,” Hanh said.

Also, in the first half of the year, the IZs in Phu Tho welcomed one more domestic project with the registered capital of VND1.1 trillion ($51 million) and four foreign ventures at a total of $39 million. The total revenue of enterprises operating in the IZs is estimated at VND24 trillion ($1.04 billion), equalling 114 per cent compared to the same period last year and reaching 48 per cent of the 2021’s plan.

The revenue increased over the same period last year, according to Hanh, that was because several businesses facing difficulties at the end of 2020 have gradually stabilised their business and increased export volume.

The total number of employees in the province’s IZs has reached over 46,500 with an average income of VND7.2 million ($313) per person per month, equalling 110 per cent over the same period last year.

These achievements have created an attractive economic environment to woo domestic and foreign investment, making an essential contribution to economic restructuring, developing industrial production, and vigorously promoting the manufacturing industry of Phu Tho.

The province has many advantages in attracting investment into its IZs. Among those is the location in the centre of the northern mountainous region, 50km from Noi Bai International Airport and adjacent to five other provinces which have better investment and economic environments.

Golden opportunity

Located in the northwest gateway of Hanoi on the economic corridor of Hanoi-Haiphong-Kunming (China), Phu Tho has become a bridge connecting the northwest areas and the Red River Delta region. Currently, Phu Tho has seven IZs and 25 industrial clusters that have been well infrastructure-equipped. Moreover, all of those IZs are well connected with Noi Bai-Lao Cai Highway, one of the essential factors for attracting investment sources.

Besides the IZs invested by the government, Phu Tho has attracted two private investors to build infrastructure for Phu Ha and Cam Khe IZs with the total registered investment capital of $182.9 million.

Especially, with a population of more than 1.4 million people, of which 57 per cent is working in the province and having grown from 1.2 to 1.4 per cent per year, Phu Tho is in the golden population period with an abundant and stable labour supply.

According to recent statistics, 70 per cent of the province’s workers were trained. Its labour productivity equals 76 per cent of the national average, ranking fourth in the northern midlands and mountains regions.

Many large-scale and high-tech foreign-invested projects have chosen Phu Tho’s IZs for their factories, significantly contributing to economic restructuring, industrial production development, and forming several new and high-tech industries. So far, Phu Tho has two certified high-tech enterprises and 22 export processing enterprises.

According to Hanh, Phu Tho is one of the leading provinces in administrative reform under the one-stop-shop policy in recent years. Administrative procedures are carried out in the direction of simplification, publicity and transparency to reduce costs and time for investors. The province also regularly listens to the business community’s voices to support them in project implementation and production.

In addition, Phu Tho also has policies to support enterprises in infrastructure connection to IZs and site clearance costs, providing services related to electricity and water supply and providing road connections.

Under the ranking results of the Provincial Competitiveness Index conducted annually by the Vietnam Chamber of Commerce and Industry, Phu Tho ranked 22nd out of 63 cities and provinces nationwide in 2020.

Phu Tho Industrial Zones Management Authority aims to carry out administrative reform, implement a one-stop-shop policy, and simplify administrative procedures. At the same time, the management authority has been creative in investment promotion models, diversifies in many forms, and prioritises to select production and business projects suitable to the province’s investment orientation and each IZ’s nature.

In addition, the authority will also invest in completing technical infrastructure works for IZs and industrial clusters in accordance to the approved planning and infrastructure works outside them. The authority is in charge of accelerating the preparation for investing and building up Tam Nong and Ha Hoa IZs, as well as integrating the new IZs into the provincial planning for the rest of the decade, with a vision towards 2050.