The Hoa Lac High-Tech Park in Hanoi is home to 81 valid investment projects with total registered capital of $3 billion, while the Saigon High-Tech Park (SHTP) in Ho Chi Minh City accommodates 130 valid projects worth a total of $6.8 billion, and the Da Nang High-Tech Park has granted investment certificates for seven projects totaling more than $160 million in value.
Hoa Lac High-Tech Park is home to 81 valid investment projects
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The SHTP is the most effective high-tech park in Vietnam, with 66 ongoing projects. The SHTP’s production value increased from $0.5 billion in 2010 to an estimated $12 billion in 2017, and is expected to exceed $20 billion by 2020. The park is providing almost 40,000 jobs and is expected to pay more than $1 billion in taxes to the state budget annually by 2020.
Last year, the government issued Decree 74/2017/ND-CP tailored specifically to the development of the Hoa Lac High-Tech Park, creating a favorable investment environment, minimizing investment costs and incentivizing investors.
The decree stipulates that new investment projects valued at VND4 trillion upward would be taxed at a 10 percent rate for 30 years.
The decree has generated great interest. The Republic of Korea’s Hanwha Techwin Co., Ltd., for example, has launched the VND4.53 trillion ($200 million) Hanwha Aero Engines factory project to manufacture aircraft engine parts and components in Hoa Lac High-Tech Park.
The government recently also issued Decree 04/2018/ND-CP for the Da Nang High-Tech Park that provides a 10 percent corporate income tax rate for businesses that implement new investment projects, for 15 years. Under the decree, which takes effect on February 20, new investment projects worth VND3 trillion upward would benefit from a 10 percent corporate income tax for 30 years.
Especially, the Prime Minister Nguyen Xuan Phuc last month ratified a master plan for development of high-tech parks to 2020 with a vision to 2030, in which high-tech parks will be developed by strengthening intensive investment, and consistent and modern infrastructure development.
The plan targets that from now to 2020 Vietnam will build at least seven IT parks as stated in the Prime Minister's Decision No. 392/2015 / QD-TTg of March 27, 2015. Accordingly, provinces and cities must meet several conditions to build such parks, such as having sufficient financial resources to build infrastructure and already having important IT projects or products.
In order to realize those targets, the PM urged relevant agencies to improve regulations, mechanisms and incentive policies for concentrated IT parks. He emphasized that all economic sectors and foreign investors should be encouraged to participate in developing the parks, especially when it came to building technical infrastructure.
The master plan also calls for more investment in research and development in the parks, promoting exchanges and linkages between parks and setting up research and training establishments.
Besides those measures, the PM suggested creating mechanisms to allow the establishment of venture capital funds to foster start-ups in IT parks.
Vietnam has targeted to become a strong ICT country by 2020 and to use technology to drive competitiveness and national economic growth. And it has the ambition to be among the fastest growing ICT countries in the world ranked by the International Telecommunication Union.
Deputy Prime Minister Vu Duc Dam said that the digital aspect of the global economy is among the leading drivers of growth and development, and the foundation for increased industrial productivity, as well as creating opportunities for businesses.
