High-tech parks get new investment boost

08:53 | 27/03/2020 Science - Technology

(VEN) - Vietnamese high-tech parks have made considerable progress and become increasingly attractive to domestic and foreign investors.

high tech parks get new investment boost

The establishment and development of high-tech parks is part of the strategy to enhance Vietnam’s scientific and technological capabilities, paving the way for the country to develop a knowledge-based economy and catch up with developed nations. High-tech parks are expected to become incubators of Vietnamese-brand inventions and patents, which contribute to Vietnam’s socioeconomic development.

High-tech parks have attracted quality investment projects from Vietnam and other countries. For example, in the Hoa Lac Hi-tech Park on the outskirts of Hanoi, 91 projects are ongoing with total registered capital of about US$3.7 billion. In 2019 alone, approved investment plans/investment registration certificates/land allocation decisions were made for four new projects with total registered capital of about US$323 million; the import value of all projects based in the hi-tech park exceeded US$1.2 billion, and export value more than US$1.2 billion.

Many investment projects of leading Vietnamese and foreign groups are based in the Hoa Lac Hi-tech Park. Examples include Hanwha Aerospace (Republic of Korea - RoK), the Nissan Techno Research and Development Center (Japan), Nidec Group (Japan), the DT&C Research and Testing Center (RoK), Viettel, VNPT and Vingroup.

In the Saigon Hi-tech Park (SHTP), 161 projects are ongoing with total investment of US$7.3 billion, including world-leading hi-tech groups such as Intel, Sanofi, Samsung, Schneider, Datalogic and Jabil. In 2019, SHTP attracted 11 new investment projects with total capital of US$802 million; the production value of all projects based in the park reached an estimated US$17 billion, and export value US$16 billion.

The Da Nang Hi-tech Park has granted investment registration certificates for 17 projects with total capital of US$563 million. In 2019, it attracted two new projects with total capital of US$172 million.

Vietnam has also built a system of legal documents to promote science and technology development. The Law on Science and Technology, Law on Intellectual Property, and Law on Technology Transfer have come into force. The government has offered incentives to encourage investors and scientists to invest in and carry out research activities in high-tech parks.

Under Government Decree 74/2017/ND-CP regarding an exclusive mechanism for the Hoa Lac Hi-tech Park, a 10-percent corporate income tax rate for 30 years is applied to new investment projects valued at VND4 trillion or higher. The government has also issued Decree 04/2018/ND-CP exclusively applied to the Da Nang Hi-tech Park, under which a 10-percent corporate income tax rate will be applied to new investment projects for 15 years, and 30 years for projects valued at VND3 trillion or higher. These incentives are expected to create a new source of vitality for high-tech parks.

The establishment of high-tech parks is aimed at attracting investment to create major breakthroughs in industrial and technological development.

Quynh Nga