Vinh Phuc's Economic Growth Projected at 7.5-7.8% in 2024

Despite many challenges, Vinh Phuc's economy rebounded strongly in 2024, achieving consistent quarter-on-quarter growth and an estimated annual GRDP increase of 7.5-7.8%.

Many businesses pledge to accompany local development

Vinh Phuc's GRDP growth exceeded Vietnam's national average of 6.8-7%, reaching the targeted range of 7.5-8.5%. Key sectors showed strong performance, with industry and construction expanding by 10.4-10.7%, agriculture, forestry and fishery growing by 1.5-1.6%, and services increasing by 7.5-7.8%. The province's current GRDP was estimated at VND172-173 trillion, an increase of VND14 trillion or 8.8-9.3% from 2023. Per capita GRDP was forecast at VND140-141 million in the year, rising 7.5-8% or VND9.8 million from 2023. The economic structure of Vinh Phuc continued to evolve positively, with industry and construction comprising 62.39-62.49%, services accounting for 30.88-31%, and agriculture, forestry, and fishery contributing 6.61-6.63%.

Industrial highlights

Although industrial production was rough in the first quarter, it started to pick up from the second quarter when some businesses had new orders on increased consumer demand, especially in electronics manufacturing. This progressive move helped elevate its industrial performance in the whole year. The Index of Industrial Production (IIP) in 2024 was projected to grow 11.3%, driven by the processing and manufacturing industry that expanded 11.4%. The production output of some major industrial products in Vinh Phuc all increased. Notably, laptop output surged 1.5 times, while Wi-Fi transmitters skyrocketed nearly 3 times. Animal feed production expanded by 21.6%, ceramic tile production rose nearly 17%, and motorbike output increased by 7.5%.

Polaroid factory tour

Industry continued to be the key in Vinh Phuc's economic development. In 2021-2024, industrial production accounted for about 70% of the province’s total output value. Its economic growth reached more than 7% a year in the 2020-2024 period, making Vinh Phuc one of the 10 best performers in Vietnam. In 2024, the province's GRDP growth was expected to exceed 7.5%. To make transformational changes in socioeconomic development, in recent years, Vinh Phuc province has issued many documents, resolutions, action programs and projects with mechanisms and policies to promote breakthrough industrial development. Hence, Vinh Phuc is now getting closer to the goal of becoming a modern industrial province. The industry has truly been a driving force and a major factor in socioeconomic development and budget revenue growth and become a key high-growing exporter.

Major contributors to Vinh Phuc’s industrial production value are automobile and motorbike manufacturers like Toyota Motor Vietnam, Honda Vietnam, Piaggio Vietnam and Daewoo Vietnam with an average yearly output of 57,780 automobiles and over 2 million motorbikes.

Seminar on Solutions, international experiences and recommendations for Vinh Phuc province in attracting high-quality investment and foreign investors

By promoting automobile and motorbike manufacturing and exporting, the province has become an attractive investment environment and driven the development of many other industries like chemical, plastic, rubber and electrical equipment production.

The accelerating development of industries, especially automobile and motorbike processing and manufacturing and electronic manufacturing industries, has generated jobs for hundreds of thousands of workers in Vinh Phuc and other provinces.

Given opened opportunities in FDI attraction in Vietnam in recent years, the industry of Vinh Phuc province was forecast to embrace many development opportunities, make important contributions to the overall economic growth, and shift to reduce farming workers and increase industrial and service workers in the coming time.

Forum on Comprehensive Green Solutions for Industrial Parks and Investment Promotion in Vinh Phuc Province

Increasingly improved investment environment

The pledged foreign direct investment (FDI) fund exceeded the set target. This is an important driving force for economic development for the time being when the economy is challenging. The total pledged FDI fund was estimated at nearly US$600 million, 50% higher than the plan and as much as in 2023. The committed domestic direct investment (DDI) fund was projected at VND5,500 billion as expected. New corporate licenses reached 1,550, slightly 1.8% higher than in 2023, with a combined registered capital of VND13,000 billion.

The province focused on enhancing investment promotion and attraction as well as business support and development. The Provincial People's Committee executed cooperation contents with Chungcheongbuk Province (South Korea), Pernik Town (Bulgaria) and Tuscany Region (Italy) and signed a memorandum of understanding on investment cooperation with Signetics Company Limited. Provincial leaders received and worked with many corporations seeking to study investment policies and investment procedures in the province such as Young Poong Group, META Investment Fund and Grandway Singapore Company. Some strategic investors proposed support and cooperation with the province like Samsung Vietnam Complex, Signetics (South Korea), T&Y SuperPort Joint Stock Company and Hoan My Medical Corporation. Notably, Signetics Company has signed an agreement with CNCTech Group to develop a semiconductor factory project in Vinh Phuc, valued at over US$100 million. Additionally, Polaris Vietnam Company has inaugurated a motorcycle parts manufacturing facility with investment exceeding US$40 million.

Young Poong Electronics Vina Co., Ltd. (Binh Xuyen II Industrial Park)

Vinh Phuc leaders aim for 8-9% GRDP growth in 2025, targeting the highest annual growth of the 2021-2025 plan and setting a foundation for 2026-2030 goals. The province will implement policies to unlock resources, drive production, bolster growth, and maintain economic stability.

The province will focus on land compensation and site clearance to woo investors into its industrial zones; launch business support solutions to boost exports, especially key products interested by large and potential markets. Vinh Phuc will fully exploit revenue sources, prevent budget loss, promptly and effectively enforce policies on tax, fee and land rent exemption, reduction and extension to support people and enterprises to quickly recover their business activities, strengthen momentum for economic development and grow revenue sources.

By Hien Nhung, Vietnam Business Forum