The estimated Gross Regional Domestic Product (GRDP) growth rate for 2024 is projected to be between 7.5% and 7.8%.

Provincial leaders are always dedicated to addressing challenges and promoting economic development

Vinh Phuc's GRDP growth exceeds national average

Despite challenges, Vinh Phuc's GRDP growth exceeds the national average (6.8 - 7%) and meets the set target (7.5 - 8.5%). The industry-construction sector is expected to grow by 10.4 - 10.7%, agriculture by 1.5 - 1.6%, and services by 7.5 - 7.8%. The province's GRDP at current prices is estimated at VND172,000 - 173,000 billion, an increase of 8.8 - 9.3% from 2023. GRDP per capita is projected to reach VND140 - 141 million, up 7.5 - 8.0%. The economic structure continues to shift positively, with industry-construction at 62.39 - 62.49%, services at 30.88 - 31.0%, and agriculture at 6.61 - 6.63%.

Despite challenges in industrial production during the first quarter, the situation improved in the second quarter as businesses received new orders and saw increased demand, particularly in the electronic components sector. This contributed to a strong industrial growth rate in Vinh Phuc, with the Industrial Production Index (IIP) estimated to rise by 11.3% for the year, and the processing and manufacturing sector up by 11.4%. Key industrial products saw significant growth, including laptops (up 1.5 times), wifi transmitters (up nearly 3 times), animal feed (up 21.6%), tiles (up nearly 17%) and motorbikes (up 7.5%).

Export activities in Vinh Phuc have seen strong growth compared to 2023, with total export turnover for the year estimated at US$16.3 billion, up 12.55%. Key exports include complete motorbikes, motorbike spare parts, phones, computers, electronics, auto parts, wood products and textiles.

Credit services in Vinh Phuc have continued to grow, meeting the capital needs of the economy. The average new loan interest rate is 6.2 - 6.5% per year, down 0.88% from the end of 2023, making it easier for businesses and individuals to access credit. Total mobilized capital is estimated at VND142,600 billion, up 12.98% from 2023. Local banks have reduced interest rates, promoted business connections, launched preferential credit packages, simplified loan procedures, embraced digital transformation, restructured debt, and maintained debt groups for customers. Outstanding loans are estimated at VND143,500 billion, up 12% from the end of 2023.

FDI attraction in Vinh Phuc has surpassed targets, serving as a key driver for economic growth during challenging times. The total FDI capital attracted is estimated at US$600 million, 150% of the target, matching 2023 levels. Domestic direct investment (DDI) is estimated at VND5,500 billion, meeting the plan. The number of newly registered enterprises is estimated at 1,550, up 1.8% from 2023, with registered capital of about VND13,000 billion.

Provincial Party Secretary Duong Van An and Provincial People's Committee Chairman Tran Duy Dong pay a working visit to Honda Vietnam's factory

Strengthening investment promotion and business support

Vinh Phuc province has focused on enhancing investment promotion, attraction, and business development. The Provincial People's Committee has signed cooperation agreements with Chungcheongbuk Province (Korea), Pernik province (Bulgaria), and the Toscana region (Italy), as well as an MOU with Signetics Company. Provincial leaders have met with corporations such as Young Poong Group, META Fund and Grandway (Singapore) to discuss investment policies. Strategic investors like Samsung, Signetics, T&Y SuperPort and Hoan My Medical Corporation have shown interest in collaboration. Notably, Signetics has partnered with CNCTech Group for a semiconductor factory project worth over US$100 million, and Polaris Vietnam has opened a factory producing motorcycles and spare parts with an investment of over US$40 million.

Recently, Mr. Tran Duy Dong, Chairman of the Vinh Phuc Provincial People's Committee, met with a Bulgarian business delegation led by Mr. Boyko Takow, Executive Director of the Bulgarian Small and Medium-Sized Enterprises Agency, to explore investment opportunities in the province. During the meeting, Chairman Dong addressed questions from Bulgarian businesses regarding investment costs, the province’s strengths in training high-quality human resources, and its investment attraction policies, particularly preferential tax rates, land rental prices, and incentives for priority sectors such as high-tech industries, semiconductors, and health and education projects.

In 2025, Vinh Phuc province aims for a GRDP growth target of 8.0 - 9.0%, setting the highest target for the 2021-2025 5-year plan and laying the foundation for the goals and tasks of the 2026-2030 plan.

Vinh Phuc will implement synchronized policies and mechanisms to unlock resources and drive growth. The focus will be on compensating and clearing land for industrial park development, supporting businesses to boost exports, especially for key products with high market potential, and maximizing revenue sources while preventing budget losses. The province will promptly apply tax, fee, and land rent reductions to help businesses recover. It will also ensure compliance with State Bank regulations on currency, foreign exchange, and banking activities, providing direct credit to priority sectors driving economic growth.

Vinh Phuc called on the government to direct ministries and agencies to continue developing economic recovery policies, including extending existing measures and introducing new ones. Specifically, the province advocates for policies that promote domestic production with longer cycles (3-5 years), particularly for industries such as automobile, motorbike and finished electronic product manufacturing. These policies aim to increase the localization rate and further boost domestic production.

Vinh Phuc also recommended that the government direct ministries and agencies to establish mechanisms allowing localities to allocate land for projects without collecting land use fees, or to exempt land use fees for several years, particularly for large-scale projects like industrial parks in cleared areas. This approach aims to ensure the smooth implementation of these projects.