Government offers incentives for high-tech park development

10:53 | 01/03/2018 Science - Technology

(VEN) - There are three national high-tech parks in Vietnam, including the Hoa Lac High-tech Park in Hanoi, the Da Nang High-tech Park in the southern central city of Da Nang, and the Saigon High-tech Park (SHTP) in Ho Chi Minh City. Investment activities in these three parks are turning positive, creating the foundation for national scientific and technological resource development.

government offers incentives for high tech park development

A production enterprise in the Saigon Hi-tech Park in Ho Chi Minh City

Attracting billions

According to a report by the Ministry of Science and Technology, the three national parks have attracted 218 investment projects totaling almost US$10 billion in registered capital, and are providing jobs for about 50,000 people.

The Hoa Lac High-tech Park is home to 81 valid investment projects with total registered capital of US$3 billion, while the SHTP accommodates 130 valid projects worth a total of US$6.8 billion, and the Da Nang High-tech Park has granted investment certificates for seven projects totaling more than US$160 million in value.

The SHTP is the most effective high-tech park in Vietnam, with 66 ongoing projects. The SHTP’s production value increased from US$0.5 billion in 2010 to an estimated US$12 billion in 2017, and is expected to exceed US$20 billion by 2020. The park is providing almost 40,000 jobs and is expected to pay more than US$1 billion in taxes to the state budget annually by 2020.

Low tax rates

Last year, the government issued a directive (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 (US$200 million) Hanwha Aero Engines factory project to manufacture aircraft engine parts and components in Hoa Lac High-tech Park.

The government recently issued another 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.

Under the master plan for development of high-tech parks to 2020 with a vision to 2030, approved by the Prime Minister through Decision 792/QD-TTg, high-tech parks will be developed by strengthening intensive investment, and consistent and modern infrastructure development.

Quynh Nga