Phu Tho: Magnet for Japanese Investment

With a strategic location, well-developed transport infrastructure, a transparent investment environment, and a clear industrial orientation, Phu Tho is becoming one of the most attractive destinations for Japanese businesses in northern Vietnam. High-quality FDI from Japan not only strengthens the province’s role as a hub for supporting industries but also drives growth in green, high-tech, and sustainable manufacturing.

Strategic advantages

It is no coincidence that Phu Tho has consistently been on the radar of Japanese corporations in recent years. Following administrative boundary adjustments, the province has become a central linkage hub in the Northwest region of the capital, offering outstanding connectivity to Hanoi, Thai Nguyen, Lao Cai, and the entire Hanoi-Hai Phong-Quang Ninh growth corridor.

The province’s interregional transport system provides a rare advantage: Noi Bai-Lao Cai and Hanoi-Thai Nguyen expressways, National Highways 2, 2B, and 32C, along with the Hanoi-Lao Cai railway, shorten freight transport times, reduce logistics costs, and enhance supply chain reliability. These factors are particularly important for Japanese investors, who have high standards for infrastructure quality, operational safety, and stable supply of materials.

Additionally, industrial parks such as Thuy Van, Phu Ha, Trung Ha, Tam Nong, Thang Long Vinh Phuc, Ba Thien, and Binh Xuyen are being developed systematically with clean land and synchronized planning. Utilities for electricity, water, and environmental treatment are built to international standards, meeting the key criteria of Japanese investors: stability, transparency, and long-term scalability.

The province’s workforce is also a major advantage. With young, high-quality, and cost-competitive labor, Phu Tho is an ideal destination for supporting industry projects, precision engineering, electronics, and green manufacturing.

As of October 9, 2025, the province had attracted 727 FDI projects with total registered capital exceeding US$13 billion. While Japan ranks second in the number of projects, it leads in terms of quality and investment efficiency, reflecting long-term confidence in the province’s business environment.

Currently, Phu Tho hosts 79 projects from Japanese partners with total capital of over US$2.1 billion, primarily in supporting industries, electronic components, and automotive and motorcycle manufacturing. Major names such as Toyota, Honda, Sumitomo, Hitachi Astemo, and TOTO have established a “Japanese supply chain” right in northern Vietnam, making Phu Tho a key industrial link in the region.

“Phu Tho always considers businesses at the center of development, committing to support and create a transparent, open, and efficient investment environment so that companies can confidently grow and develop sustainably,” Chairman of the Phu Tho Provincial People’s Committee Tran Duy Dong affirmed.

Symbol of Vietnam-Japan cooperation and new wave of investment

When discussing Japanese enterprises in Phu Tho, Toyota Vietnam stands out as a flagship example. Over more than 30 years of presence, Toyota has not only laid the foundation for Vietnam’s automotive industry but also helped develop the local supporting industry ecosystem.

With 700,000 vehicles produced, 1 million vehicles sold, nearly US$1 billion in exported components, VND14.4 trillion in contributions to the state budget, and 1,000 locally sourced components, Toyota exemplifies an efficient, socially responsible production and business model.

Notably, Toyota is implementing an investment plan of over US$360 million to upgrade its factory, modernize production lines, and begin producing the first Hybrid model in Vietnam.

CEO of Toyota Vietnam Nakano Keita emphasized that the company will continue expanding green investments, adopting energy-saving technologies, and reducing emissions, in line with Vietnam’s sustainable growth strategy and Phu Tho’s green industrial development plan.

Beyond Toyota, Sumitomo Corporation - one of Japan’s three largest conglomerates - is also expanding its influence in the region through the Thang Long Vinh Phuc Industrial Park. The park is now 96% occupied, hosting 60 companies from Japan, South Korea, Thailand, Taiwan, and Vietnam, providing jobs for 14,000 workers.

With “Japanese-standard” infrastructure, professional management, full-service support, and a stable operating environment, the industrial park has become one of the most successful FDI models in the northern midland-mountain region. Since 2017, Sumitomo has contributed nearly VND8 billion to local social welfare programs, in addition to bringing advanced corporate governance standards.

At the 10th-anniversary celebration of the industrial park, Kenta Kawanabe, CEO of Thang Long Vinh Phuc Industrial Park Co., Ltd., highlighted that the model exemplifies the Vietnam-Japan Comprehensive Strategic Partnership, with significant growth potential in the coming years.

Strengthening its role as a northern supporting industry hub

Alongside the strong presence of Japanese corporations, Phu Tho is building a transparent, stable, and business-friendly investment ecosystem, forming a foundation to attract high-quality FDI from 2025 to 2030.

The province continues to improve its Provincial Competitiveness Index (PCI) ranking, streamline administrative procedures, expand industrial park areas, promote digital transformation, build service-oriented governance, and strengthen public-private dialogue. Priority sectors include supporting industries, high-tech, renewable energy, electronics, precision engineering, and smart agriculture.

Phu Tho is steadily building lasting trust within the business community. In the context of deepening Vietnam-Japan economic cooperation, Phu Tho is expected to remain a strategic destination for Japanese investors, contributing actively to the growth of the northern midland-mountain region and the country as a whole.

By Huong Hau, Vietnam Business Forum