The People’s Committee of Phu Tho Province promulgated Plan No. 266/KH-UBND dated 11 July 2026 to translate the strategic objectives of the Scheme on “Supporting connectivity, linkages and cooperation between local enterprises and foreign-invested enterprises to facilitate participation in global supply and value chains” into concrete actions. The Scheme constitutes an important step towards developing an integrated industrial ecosystem, enhancing productive capacity of domestic enterprises, and providing a robust institutional and operational framework to foster sustainable economic linkages.
The Scheme on “Supporting connectivity, linkages and cooperation between local enterprises and foreign-invested enterprises to facilitate participation in global supply and value chains” was promulgated by the People’s Committee of Phu Tho Province under Decision No. 1102/QD-UBND dated 9 April 2026. The Scheme provides the Province’s macro strategy for addressing the limited depth of linkages between foreign direct investment (FDI) enterprises and domestically invested enterprises (DDIs).
The Scheme focuses on identifying the Province’s priority industrial sectors with the greatest potential to integrate into global value chains. It aims to increase the domestic content of industrial products manufactured in the Province, while maximizing value-added and technology spillovers of next-generation FDI. Its objectives are to identify, select and provide targeted support to a cohort of high-potential domestic enterprises capable of serving as anchor firms. These enterprises are expected to serve as a pillar with advanced managerial capabilities, complying with internationally recognized technical and quality standards, and establish direct supplier relationships with multinational corporations and high-technology enterprises leading global value chains.
Key measures to promote linkages under Plan No. 266/KH-UBND
Building upon the strategic direction established under the Scheme promulgated through Decision No. 1102/QD-UBND, Plan No. 266/KH-UBND translates these policy objectives into six strategic measures to ensure the coordinated and results-oriented implementation across the Province.
Policy development and reform to promote linkages in priority industries
The Province will prioritize the development of a coherent policy framework designed to foster stronger linkages between FDI and DDI across the production, supply and innovation. These policies aim to increase local content and enhance domestic value added.
Moreover, the Province will concentrate its resources on attracting large-scale FDI projects, particularly technology-intensive enterprises possessing core technologies and serving as lead firms within industrial ecosystems. The presence of such lead firms is expected to generate substantial local sourcing demand, thereby stimulating the growth and upgrading of domestic supporting industries.
Capacity development for DDIs and formation of a core enterprise contingent
The Province will allocate resources to provide technical assistance enabling domestic enterprises to adopt internationally recognized standards and obtain certifications in quality management, environmental management and manufacturing excellence. Compliance with these internationally recognized standards is essential for meeting the stringent requirements of global supply and value chains.
Priority will be given to expanding the pool of medium-sized and large DDIs with strong technological and production capabilities, and from there the Province aims to cultivate a group of high-performing domestic enterprises that will serve as lead local firms facilitating technology diffusion, and acting as key intermediaries to integrate smaller enterprises into supply chains.
The Province will also support domestic enterprises in upgrading manufacturing technologies, and developing high-tech produce. These efforts are intended to facilitate their transition from low-value-added contract manufacturing towards higher technology – intensive ratio including product design and engineering.
Strengthening linkages, market and supply chain promotion and development
Establish a centralized digital database that is publicly accessible and regularly updated. The database will provide comprehensive information on the procurement needs for materials and components, as well as the technical standards and supplier requirements of FDI enterprises. It will also include detailed capability profiles of DDIs operating within the province, thereby enhancing the efficiency of supply–demand linkage.
Organize substantive and direct business networking and trade activities. Encourage and establish appropriate mechanisms for leading FDI enterprises to develop technical assistance programmes and provide on-site technology transfer for local suppliers.
Spatial development, infrastructure enhancement, and sectoral linkage
Allocate fully serviced, cleared land within industrial parks and clusters specifically for the development of supporting industries. Prioritize integrated investment in technical infrastructure, logistics facilities, warehousing, and distribution centres to strengthen manufacturing supply chains.
Develop dedicated spaces to attract projects in the production of components and supporting industrial products in strategic sectors, including electronics and precision engineering, thereby enhancing and sectoral linkages.
Human resource development and specialized training
Promote strategic partnerships between universities, colleges, vocational education, training institutions and FDI and DDIs. Modernize technical training curricula to equip the workforce with skills that meet the operational standards of advanced manufacturing facilities.
Strengthening governance capacity and implementation
Organize specialized training programmes and advisory services to enhance the capacity of officials and public servants from relevant departments and agencies. Strengthen their ability to coordinate and effectively manage cross-sectoral programmes related to manufacturing development and enterprise support.
Implementation arrangements and strategic direction
Plan No. 266/KH-UBND clearly assigns responsibilities to each department and agency to ensure policy coherence, data sharing, and close monitoring of implementation progress. The Department of Finance, serving as the lead coordinating agency, is responsible for organizing implementation, conducting periodic evaluations, and recommending adjustments to the Scheme’s objectives where necessary. The Department of Industry and Trade will implement direct measures to strengthen the capabilities of the supporting industries sector. The Department of Science and Technology will facilitate enterprises’ access to the science, technology and innovation development Fund while promoting the adoption of smart manufacturing technologies. The Management Board of Industrial Parks and the Department of Agriculture and Environment will oversee infrastructure and land-use planning. These agencies will advise the Provincial People’s Committee on site clearance, planning adjustments, the establishment of at least one dedicated supporting industry industrial park, and the introduction of mechanisms that enable enterprises to access industrial land more seamlessly. Meanwhile, the State Bank of Viet Nam – regional Branch No. 4 will coordinate the provision of safe and efficient credit to priority enterprises. The Department of Home Affairs and the Department of Education and Training will be responsible for developing a highly skilled workforce to support stronger FDI–DDI linkages and the province’s long-term economic development. The Investment Promotion and Enterprise Support Centre will advise the Provincial People’s Committee on organizing and implementing investment promotion and business linkage activities. Educational and vocational training institutions across the province will align their training programmes with the evolving needs of enterprises. People’s Committees at the ward and commune levels will accelerate land clearance to facilitate the implementation of major infrastructure projects. Particular emphasis is placed on the role of business associations. Beyond representing the interests and concerns of enterprises, these organizations are encouraged to study the establishment of a dedicated manufacturing industry Association (or supporting industry Association) to consolidate the collective strength of domestic enterprises and promote stronger collaboration with FDI enterprises.
The issuance of the Scheme by Phu Tho Provincial People’s Committee, together with its comprehensive policy framework and detailed implementation plan represents an essential foundation. However, deeper integration into global supply chains ultimately depends on the proactive efforts of domestic enterprises themselves. This requires a transformation in corporate governance, greater investment in advanced technologies, and systematic preparation to meet the standards of international partners. Plan No. 266/KH-UBND is expected to accelerate the restructuring of the province’s industrial sector towards a more sustainable model, enabling Phu Tho’s manufacturing industry to achieve deeper integration into global networks in the years ahead.
By Nguyen Hoang Nam - Translated by Dang Thi Lam Tuyen