Vĩnh Phúc and the Comprehensive Development Strategy
Vĩnh Phúc province is located in the key economic region of northern Vietnam. It is the gateway to Hanoi, close to Noi Bai International Airport, and serves as a connection between the northwest provinces and Hanoi and the Red River Delta.
Vĩnh Phúc has a strategic location with a well-connected transportation system, including road, railway, and waterway networks, linking the region and the Hanoi – Hai Phong – Lao Cai – Cao Minh economic corridor. It is one of the important satellite cities and the northwest gateway to Hanoi.
The unique geographical position, combined with its natural diversity and a well-developed infrastructure, especially the highway system, provide favorable conditions for Vĩnh Phúc to connect urban, industrial, commercial, and service development with Hanoi and other localities in the region.
By 2030 and vision to 2050, Vĩnh Phúc aims to achieve an average GDP growth rate of 10.5-11.0% per year during the period 2021-2030. The per capita GDP is expected to reach about 325 million VND by 2030. The urbanization rate is targeted at about 65%, and the entire province is planned to become a type I urban area.
By 2050, Vĩnh Phúc envisions to become a centrally-governed city with a modern, green, and clean infrastructure, thriving society, and comprehensive development in all aspects, including economic, social, and environmental factors.
A corner of Vĩnh Yên city, Vĩnh Phúc.
In the coming years, Vĩnh Phúc will accelerate the transition to a green, circular, and digital economy. The industrialization and urbanization process will focus on green energy conversion and green technology adoption.
“The attractiveness to investors is not land or cheap labor, but green infrastructure, smart connectivity, clean energy, and environmental considerations. These are priority areas for investment as emissions and environmental footprints will be reflected in the products,” Deputy Prime Minister Tran Hong Ha stated at the conference announcing the Vĩnh Phúc provincial plan for the period 2021-2030 and vision towards 2050.
Rising Strong from a Poor Agricultural Province
According to information from the Vinh Phuc Provincial Portal, the province has become an economically developed locality with a consistently high growth rate, reaching over 20% in some years. The average annual growth rate during the period 1997-2021 was 13.42%. The growth quality has improved significantly, with labor productivity reaching 212 million VND per worker per year, an increase of 20.5 times compared to 1997 (10.3 million VND per worker).
The scale of the economy has expanded, reaching 136.2 trillion VND in 2021, an increase of 69.6 times compared to 1997 (1.96 trillion VND). The economic structure has positively shifted towards industrialization and modernization. The industrial and construction sectors have achieved high growth rates and played a leading role in driving economic development, accounting for a significant proportion in the provincial GRDP structure.
A magnificent castle on the top of Tam Dao mountain.
In 2023, Vinh Phuc’s socio-economic achievements are remarkable. The Gross Regional Domestic Product (GRDP) in 2023 is projected to reach 158 trillion VND, ranking 6th in the Red River Delta and 14th nationwide. The local budget revenue is estimated to surpass 40 trillion VND. The per capita GRDP is expected to exceed 130 million VND per year, ranking 5th in the Red River Delta and 9th nationwide. The poverty rate is reduced to about 0.7%, while the near-poor rate is about 1.7%.
Every year, the province creates jobs for approximately 20,000 workers, and the provincial budget provides over 300 billion VND to implement policies for targeted groups.
Vĩnh Phúc’s economic governance quality index is consistently among the highest in the country, with the PAR INDEX ranking in the top 10 and the PAPI index placing the province among the top 20 provinces and cities nationwide. Vĩnh Phúc has become an attractive destination for investors, including numerous FDI enterprises from leading multinational corporations, such as the United States, Germany, Japan, and South Korea.
The transportation infrastructure system has been significantly improved, becoming more synchronized and modern. All national roads are paved, the Hanoi – Lao Cai expressway runs through the province with 5 completed and planned interchanges, providing favorable conditions for connecting with northern provinces and the Red River Delta. Provincial and district roads have been upgraded and expanded, and over 95% of rural roads and 65% of commune roads have been hardened.
