Phuc Yen Industrial Park positioned as strategic manufacturing hub

A joint venture between Vinh Phuc Infrastructure Development and International Services JSC (VISIZ) and SHINEC JSC broke ground on Phuc Yen Industrial Park (IP) in Phu Tho province on April 9, following approval from provincial authorities.

The project, covering 111.33 hectares with total investment of over VND1.98 trillion ($80 million), is positioned as a key component of Phu Tho’s industrial strategy, aimed at attracting high value-added sectors including high-tech manufacturing, electronics, precision engineering, supporting industries, and logistics.

Local authorities view the development as part of a broader push to modernise industrial infrastructure and improve competitiveness, particularly as Vietnam seeks to capitalise on global production shifts. Phu Tho, traditionally outside the core industrial belt, is increasingly positioning itself as a gateway connecting Hanoi with northern midland and mountainous regions.

Tran Duy Dong, Chairman of Phu Tho People’s Committee, said the project holds strategic importance within the province’s industrial planning framework. “Phuc Yen Industrial Park is designed to attract clean and high-tech industries, in line with our long-term development orientation. It is not just an infrastructure project, it is also a model for modern, environmentally friendly industrial development,” he said.

“To ensure the effectiveness of this and other IPs, the province is committed to developing synchronised external infrastructure, including transport, electricity, water, and telecommunications. We will prioritise high-tech investment, ensure environmental compliance across all industrial zones, promote the use of renewable energy, and strengthen workforce development alongside social housing for workers,” he added.

The project benefits from strong connectivity, located near Noi Bai–Lao Cai Expressway and approximately 10 minutes from Noi Bai International Airport, with direct links to Hanoi and major manufacturing centres. This positioning is expected to support supply chain efficiency and reduce logistics costs for investors.

Infrastructure within the IP is being developed in a synchronised manner, including internal road systems, high-capacity power supply, water and drainage networks, and a centralised wastewater treatment facility meeting environmental standards. These elements are intended to allow investors to commence operations shortly after land handover.

The development will be implemented in two phases. The first phase, from the first quarter of 2024 to the first quarter of 2026, focuses on legal procedures, land clearance, and initial construction. The second phase, scheduled from the second quarter of 2026 to the first quarter of 2027, will complete technical infrastructure and prepare the site for secondary investors.

Nguyen Hai Tung, general director of VISIZ and representative of the investor consortium, said the park is designed to meet international standards and respond to evolving investor requirements. “We are not simply developing an industrial site, but building a high-tech industrial ecosystem aligned with digital transformation, green transition, and circular economy principles,” he said.

“The park is expected to become an attractive destination for high-quality foreign investment, creating significant employment opportunities and supporting structural economic transformation in the area. Our focus is on delivering a sustainable environment where businesses can operate efficiently and expand over the long term,” he added.

Pham Hong Diep, chairman of Shinec JSC, said the ecological IP model offers a strong competitive advantage in attracting investment, particularly as sustainability becomes a core requirement for global manufacturers. He noted that this approach reduces market risk, as demand for environmentally compliant industrial space continues to grow.

“An eco-IP is inherently more competitive than conventional models, especially in today’s investment landscape. Investors are no longer driven purely by cost, but by long-term sustainability and compliance with ESG standards, so we are confident about market demand,” Diep said.

He added that environmental, social, and governance (ESG) principles are being embedded throughout the entire development process of Phuc Yen Industrial Park, from land clearance and site preparation to infrastructure construction and operation. “We are implementing ESG from the very beginning, not as an add-on but as a core development principle. This ensures that investors can operate in a high-quality, sustainable environment aligned with global standards,” Diep explained.

Once operational, Phuc Yen IP is expected to attract dozens of secondary investors, generate thousands of jobs, and contribute to local budget revenues. The project is also anticipated to stimulate the development of supporting services, urban areas, and commercial activities in Phuc Yen ward and surrounding areas, reinforcing its role as a new industrial growth node in northern Vietnam.