16:02 | 21/08/2017 Science - Technology
(VEN) - In the first six months of 2017, production activity in the Saigon Hi-Tech Park (SHTP) recorded a significant increase. Businesses have focused on investing in various areas of high technology to meet investor demand.
Almost one-third of exports
Pham Thanh Kien, director of Ho Chi Minh City (HCMC) Department of Industry and Trade, says that since the beginning of the year, the city’s export turnover has been recovering and growing. This figure reached US$17 billion in the first half, an increase of 17.4 percent compared to a year ago. State-owned enterprises made up 37.9 percent of the total, up 2.2 percent year-on-year, while foreign-invested firms accounted for 62.1 percent, up 34.9 percent.
The structure of exports moved in the right direction, with an increase in the proportion of high-tech and processing industries, and a decline in the proportion of raw materials. Total export value of businesses in the SHTP in the first half stood at US$4.6 billion, of which, exports of electronic products and components increased by nearly 80 percent.
High-tech products are expected to contribute one-third to the city’s total export value in 2017, up from 20 percent in 2015 and around 25 percent in 2016.
More than 110 projects have been licensed to invest in the SHTP, including by large investors such as Schneider Electric Manufacturing Vietnam, QSIC Vietnam, Intel Products Vietnam and Samsung Electronics HCMC CE Complex.
Ho Chi Minh City’s electronics and information technology sectors have increasingly attracted the interest of foreign groups. The production and marketing of electronic meters, black boxes for automobiles and motorcycles, and container monitoring systems have been particularly successful.
Facilitating export growth
In a meeting with Ho Chi Minh City People’s Committee Chairman Nguyen Thanh Phong in late June 2017, Shim Won Hwan, general director of Samsung Vietnam, said the manufacturing facilities of Samsung Vietnam and its member enterprises are employing 165,000 workers. With around 7,000 employees, the Samsung Electronics HCMC CE Complex exports over 90 percent of its output. It expects to generate around US$3.5 billion in export value this year.
Samsung has sent experts to Vietnam to provide advice for local companies in terms of production, technology and administration improvements in order to promote the development of Vietnam’s support industries and increase the local content in Samsung products. Samsung has pledged to continue cooperation with the Vietnamese government and Ho Chi Minh City to support the development of Vietnamese businesses.
Being aware of the importance of high tech in the process of industrialization, modernization and economic development, Ho Chi Minh City has focused on attracting investment in high-tech development. In addition, the city has made greater efforts to improve its business and investment environment in order to create the most favorable conditions for investors to operate effectively.
Ho Chi Minh City’s SHTP aims to attract US$600 million worth of investment capital and reach export value of over US$9 billion this year. In addition, the SHTP gives priority to projects by small foreign high-tech companies. To attract investors to the SHTP and promote export growth, Ho Chi Minh City has adopted many preferential policies. These include exemptions of import and value-added taxes on imported goods for direct use in scientific and technological research and development, and application of zero percent export and value-added taxes on high-tech products, and free import tax for imported goods to create fixed assets for scientific and technological projects.