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Hanoi breaks ground on $7.3 million craft village industrial cluster

The new craft village industrial cluster will help ease the shortage of production space for local households and businesses.

THE HANOI TIMES — Hanoi has officially kicked off construction of the Van Tu Craft Village Industrial Cluster, a VND185.7 billion (US$7.3 million) project launched on June 12 in Phu Xuyen District.

Spanning 6.6 hectares, the new cluster will provide modern infrastructure tailored to the needs of traditional industries, such as garment and fashion manufacturing, leather footwear production, mother-of-pearl inlay, and handicrafts, longstanding trades in Van Tu Commune.

Groundbreaking ceremony for the Van Tu Craft Village Industrial Cluster in Hanoi’s Phu Xuyen District on June 13. Photo: Kinh te & Do thi Newspaper

Van Tu is one of four village-based industrial clusters in Phu Xuyen District, alongside the Phu Tuc, Phu Yen, and Dai Thang clusters. These projects are part of the city’s strategy to modernize rural industry and promote sustainable economic growth in suburban districts.

According to Phu Xuyen District People's Committee Vice Chairman Nguyen Trong Vinh, the project holds strategic value for the district’s socioeconomic development. "It is expected to create a value chain linking the production, processing, and distribution of traditional products while opening up opportunities for tourism development and local economic diversification," he said.

Vinh said once the infrastructure is complete, the district will prioritize attracting secondary investors in Phu Xuyen, especially those facing space constraints or operating in environmentally sensitive residential areas.

District authorities urged the project developer to allocate resources toward accelerating construction in accordance with the approved plans, ensuring quality, safety, and environmental standards.

The project is expected to be completed by the fourth quarter of 2025.

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