Mr. Le Ba Minh Hai, Chairman of Phu Bai Ward People’s Committee

Could you assess the current role of Phu Bai Industrial Zone in the locality’s socio-economic development?

Phu Bai Industrial Zone is currently the primary growth driver, playing a pivotal role in the ward’s socio-economic development. In 2025, industrial production within the IZ accounted for approximately 80% of the total industrial output of the area, contributing to a total production value exceeding VND 33.129 trillion.

Beyond accelerating the shift toward industrialization, the IZ has made substantial contributions to the state budget and created stable employment for thousands of local workers. This is a critical factor in improving living standards and ensuring social welfare.

Notably, the IZ’s development has spurred synchronized growth in services, housing, and logistics, gradually forming a dynamic economic ecosystem. As a result, Phu Bai Ward is increasingly establishing itself as a key industrial hub in southern Hue City.

What are the standout advantages that help Phu Bai attract both domestic and foreign investors?

Phu Bai possesses several strategic advantages in attracting investment. First and foremost is its highly favorable geographic location at the southern gateway of the City, situated along the East–West Economic Corridor and adjacent to Phu Bai International Airport. This creates ideal conditions for logistics development and significantly reduces transportation costs for businesses.

In addition, the IZ’s infrastructure is increasingly well-developed. The establishment of Gilimex Industrial Park, covering over 460 hectares, along with expansion zones, has created a ready supply of cleared land for large-scale projects. Technical infrastructure – including electricity, water supply, telecommunications, and wastewater treatment – has been developed in a synchronized manner, meeting investor requirements.

Moreover, a stable socio-political environment is a major advantage. Public security and order are well maintained, providing a solid foundation for economic development. Social welfare indicators are notably high: 100% of residents are covered by health insurance, all households have access to clean water, and waste is effectively collected and treated. These factors not only improve quality of life but also project an image of a modern, livable locality.

Additionally, an abundant workforce with competitive labor costs continues to strengthen Phu Bai’s appeal to both domestic and international investors.

Well-developed transport infrastructure facilitating growth and investment in the IZ 

What concrete measures has Phu Bai implemented recently to improve the investment environment?

In implementing the Resolution of the 1st Ward Party Congress for the 2025–2030 term, we have identified improving the investment environment as a central task, guided by the principle that “the government accompanies businesses.”

One notable solution is the promotion of digital transformation in administrative management. Currently, 100% of administrative procedures have been digitized, significantly reducing processing time for matters related to land, investment, and residency.

At the same time, the locality has focused on removing bottlenecks in site clearance, particularly for key projects, to ensure timely handover to investors. Regular business dialogue sessions are also maintained to promptly address difficulties arising during project implementation.

These efforts have helped strengthen business confidence and create a more transparent, efficient, and investor-friendly environment.

Which sectors are currently prioritized for investment in Phu Bai Industrial Zone?

Phu Bai adopts a selective approach to investment attraction, prioritizing quality and sustainability. Key sectors include processing and manufacturing industries, particularly supporting industries for textiles and footwear, leveraging existing supply chain advantages.

The locality also prioritizes high-tech industries such as electronics and semiconductors to enhance added value and modernize the economic structure.

Logistics and modern warehousing are also encouraged, taking advantage of proximity to the international airport. At the same time, green projects, renewable energy, and clean production are promoted to ensure sustainable development.

What are the major challenges in attracting investment at present?

Despite its advantages, Phu Bai faces several challenges. One key issue is pressure on external transport infrastructure, which can experience localized congestion at peak times.

Site clearance for some projects remains difficult, requiring time and strong consensus from residents. In addition, competition among localities in attracting investment is increasingly intense, especially in high-tech sectors.

Another concern is the shortage of high-quality human resources, which has yet to meet demand as large-scale projects come into operation. This necessitates comprehensive solutions, from workforce training to infrastructure upgrades and continued improvement of the investment environment.

What solutions has the local government adopted to address these challenges and better support businesses?

We believe that attracting investment must go hand in hand with supporting businesses. The local government not only assists with administrative procedures but also ensures security and a stable production environment.

At the same time, we strengthen labor supply–demand connections to help businesses recruit and stabilize their workforce quickly. The development of social infrastructure such as worker housing, schools, and healthcare facilities is also prioritized to improve workers’ living conditions.

These are key factors that give businesses confidence to invest long-term and develop sustainably in the locality.

In the face of increasingly fierce competition, what strategy will Phu Bai pursue to differentiate itself?

We are orienting development toward an “integrated industrial–urban ecosystem” model, namely, not only providing production space but also building a high-quality living environment with full amenities for workers.

At the same time, the locality is accelerating the development of digital government to improve administrative efficiency. Linking industrial development with innovation and logistics will be a distinctive advantage, enabling Phu Bai to stand out in attracting investment.

Thank you very much!

Story and photos: Hoang Trieu