Developed with input from over a hundred state, regional, and local partners and stakeholders, the five-year (FY25-FY29) Strategic Plan for Economic Development of the Commonwealth outlines an ambitious economic vision for Virginia and The Virginia Economic Development Partnership (VEDP). Completed in June 2024, the Plan begins by articulating five transformational goals and ends with a comprehensive list of targeted, actionable strategies and initiatives on how to bring that vision to life.  

“VEDP leadership and staff worked tirelessly with state, regional, and local partners and stakeholders to prepare this comprehensive, robust Strategic Plan that provides a blueprint to move the Commonwealth’s economy forward in the next five years and beyond,” said William H. Hayter, chair of the VEDP Board of Directors. “I commend everyone involved in this critical effort and am confident that continued collaboration and full implementation of this Strategic Plan will have transformational results and build on the successes that made Virginia America’s Top State for Business for 2024.”  

In addition to the Strategic Plan for Economic Development of the Commonwealth, each Gubernatorial Administration is required by Code to release an Economic Development Policy in the first year of the Administration. For more information about Compete to Win, the Comprehensive Economic Development Policy of the Youngkin Administration, clickhere. 

Five Transformational Goals 

Through its strategic planning process, VEDP engaged its partners and other stakeholders in a variety of ways to develop and refine a set of five transformational economic development goals for Virginia and VEDP, as well as strategies and initiatives to accomplish each of them. The five Transformational Goals are: 

  1. Robust state growth:Position Virginia to achieve a growth rate among that of the top 10 states in the U.S.
  2. Every region wins: Ensure that every region participates in the Growth of the Commonwealth.
  3. Best state business climate: Cultivate a leading business climate and sector-specific ecosystems.
  4. Top state for talent: Establish Virginia as a top state for talent retention, attraction, development, and alignment.
  5. Most innovative, collaborative, and effective state EDO: Solidify VEDP’s position as one of America’s top state economic development organizations through an innovative strategy, collaborative approach, and effective outcomes 

Goal #4, making Virginia a top state for talent, is a new addition to this Strategic Plan. Recognizing that a plentiful, high-quality workforce is one of the main drivers of company location decisions and growth, this goal places talent at the forefront of Virginia’s effort to strengthen its competitiveness. To achieve this goal, the Commonwealth must pursue innovative approaches to retain and attract talent, develop talent aligned to employer needs, and unlock individual potential by reducing barriers to job opportunities. 

Kirk Cox, president of the Virginia Business Higher Education Council and former speaker of the Virginia House of Delegates, said, “This Strategic Plan will help VEDP fulfill its mission to create a better future for Virginia. Businesses are increasingly prioritizing access to talent, and this Plan will help Virginia become America’s top state for talent and solidify its position as the premier destination for business in the United States.” 

Virginia’s Economic Position 

In recent years, Virginia has made significant strides toward reaching its transformational goals. Virginia has seen improved economic performance, ranking 16th in employment growth in 2024 (compared to 28th in 2017). Across the state, 17 of Virginia’s 18 marketing regions have grown since 2017. VEDP has also improved its capabilities by strengthening project management efforts and building new programs for international trade, site development, and workforce recruitment and training. As a result, Virginia has secured historic wins, including Amazon’s HQ2, the largest competitive economic development project by jobs in U.S. history; LEGO, one of the top five manufacturing projects in Virginia history; and Wells Fargo, the largest service-sector project west of the Blue Ridge in Virginia history.  

However, despite these successes, the state still faces areas for improvement. Virginia’s competitive position in today’s dynamic global economy is evolving, and while it has made strides, more must be done to fully capitalize on emerging opportunities and address persistent challenges. 

One significant area of progress has been site development. Virginia has taken major steps in enhancing its project-ready site infrastructure, investing over $300 million in sites across the Commonwealth. Although progress has been made, a lack of sustained long-term funding for site development remains a barrier to maximizing the state’s potential in this area. 

Another major achievement for Virginia has been the development of the Talent Accelerator Program, a recruitment and training initiative now ranked #1 nationally. With talent being an increasingly important factor in corporate location decisions, this program has provided significant value to new and expanding businesses across the state. However, Virginia’s recent outmigration trend of key talent demographics makes it imperative for partners across the Commonwealth to pursue new, focused efforts for retaining, attracting, and developing talent.  

Virginia faces other new challenges and opportunities, such as transitioning energy needs, rising housing costs, a renewed federal focus on strategic sectors, the rise of AI, and shifting U.S. demographic trends. These factors demand creative solutions and an increasingly collaborative approach to economic development. To be a leading state in this increasingly competitive economic landscape, VEDP has launched an Innovative Framework for Economic Growth. This effort, detailed in the FY25-FY29 Strategic Plan, establishes a vision for strengthening sector ecosystems, fostering cross-government collaboration, and ensuring Virginia remains at the forefront of economic development in the coming decades.  

Virginia Secretary of Commerce and Trade Caren Merrick said, “The Virginia Economic Development Partnership is clearly committed to getting economic development right for the Commonwealth and, crucially, all of its regions and communities. The Strategic Plan identifies much-needed objectives to deliver greater economic prosperity across all parts of Virginia.” 

Strategies for Accelerating Economic Growth 

The Strategic Plan details three types of strategies Virginia and VEDP can pursue to achieve the five transformational goals. 

1. Strategies to enhance Virginia’s human capital development engine 

  • Retain and attract talent to drive growth in target industries and key demographic groups 
  • Align and promote K-12 and higher-ed career programs that develop skills for and exposure to core sectors 
  • Support the workforce through targeted talent solutions and improved access to childcare and housing 

2. Strategies to strengthen Virginia’s economic competitiveness 

  • Improve Virginia’s infrastructure assets to accelerate industry and international trade growth  
  • Reduce Virginia’s cost of doing business by streamlining taxes, incentives, and regulatory burdens  
  • Enhance Virginia’s innovation ecosystem and living environment to cultivate key industries and attract talent 
  • Increase economic development capacity and investment in rural regions and small metros 

3. Strategies to build VEDP’s capabilities 

  • Cultivate world-class talent development and knowledge management at VEDP 
  • Leverage Sector Teams to strengthen ecosystem development and attraction efforts  
  • Deepen alignment with strategic partners to deliver on shared goals 
  • Deliver programs and services that support existing businesses and grow international trade 
  • Maintain best-in-class marketing, branding, lead generation, and project management functions 

Top short-term priorities articulated in the Strategic Plan include: 

  • Enhance Virginia’s portfolio of project-ready sites  
  • Accelerate the implementation of the Innovative Framework by deepening collaboration across Sector Teams and other VEDP divisions 
  • Attract and retain talent through enhanced marketing efforts, focusing on Virginia’s talent competitiveness in core sectors 
  • Continue to foster strong relationships with state, regional, and local partners 

The Virginia Chamber of Commerce and VEDP have collaborated extensively over the years to align on initiatives and advance economic development priorities, including for this FY25-FY29 Strategic Plan update. Examples of the Plan’s shared priorities with the Chamber include developing, attracting, and retaining Virginia’s world-class supply of talent; strengthening Virginia’s inventory of strategic, project-ready sites; and developing a robust economic development marketing program for Virginia comparable to those in competing states, such as North Carolina, Georgia, and Ohio. 

“The Virginia Chamber has been engaged in this process every step of the way,” said Barry DuVal, President & CEO of the Virginia Chamber of Commerce. “This Strategic Plan and the economic growth strategy that it outlines will ensure Virginia remains at the top of state business climate rankings. The Chamber is especially enthusiastic about the strategies focused on positioning the Commonwealth and each of its regions for faster growth, as well as those designed to position Virginia as America’s top state for talent.”  

Stakeholder Engagement 

VEDP conducted a 12-month partner engagement process to develop the updated FY25-29 Strategic Plan. VEDP sought partner feedback through a series of surveys, focus groups, and roundtables. VEDP also integrated elements of adjacent strategic efforts, including the Governor’s Comprehensive Economic Development Policy, the Virginia Chamber’s Blueprint Virginia 2030, and Virginia’s International Trade Plan, to develop the Plan’s updated transformational goals, strategies, and initiatives. Key audiences engaged during the strategic planning process include more than 50 local and regional economic developers, state government officials, higher education institutions, private sector businesses, international trade partners, a Rural Task Force of over 20 stakeholders, and statewide associations such as the Virginia Chamber and Virginia Maritime Association. 

Implementation and Impact 

The Strategic Plan identifies 37 initiatives that VEDP and partners will work to implement over the next five years. The Plan also includes detailed metrics that VEDP tracks and reports to the General Assembly each year to measure success against each of the five transformational goals.  

Although most of the strategies and initiatives articulated in the Strategic Plan would require new investments, many of them do not. Virginia can substantially improve its economic performance with its existing resources, but the transformational goals are unlikely to be fully accomplished without implementing most of the Strategic Plan’s strategies and initiatives. Furthermore, partner collaboration is essential for successful execution. Going beyond Virginia’s nation-leading business climate requires the support and leadership of the Commonwealth’s diverse array of state, local, and regional partners. Working together, we can build new, innovative approaches to unlocking future economic growth.