Development of the Private Economy and Participation in the Global Chain in Phu Tho Province
Steps taken and obstacles encountered to increase the participation of small and medium-sized enterprises in Phu Tho in global supply chains are being examined.
The growth potential of the private sector in Phu Tho province, structural constraints, low foreign investment chain participation, and strategic reforms introduced by the local government to solve these problems are discussed.
Structural Status of Businesses
There are approximately 42,000 registered and operating businesses in Phu Tho province. Of these, 97 percent consist of small and medium-sized private enterprises, and more than 70 percent consist of small and micro enterprises.
Obstacles to Growth
Although the increase in the number of businesses entering the market stimulates the entrepreneurial spirit, the technological capacity, labor productivity, and competitiveness of domestic private enterprises remain low compared to foreign direct investments.
Supply Chain Connections
While 59.82 percent of the businesses in the province have supply chain connections with domestic private enterprises, the rate of private enterprises participating in the supply chains of foreign direct investment enterprises is only 2.68 percent.
Management and Objectives
The provincial administration is implementing various solutions to reform administrative procedures and support access to capital and technology. The goal is to attract large corporations and establish high-tech parks by 2030.