Korea-Vietnam Incubator Park off to slow start

15:32 | 24/03/2017 Science - Technology

(VEN) - The Korea-Vietnam Incubator Park (KVIP) in the southern city of Can Tho is a valuable asset of the Mekong Delta, in particular, and of Vietnam in general, and part of the country’s startup ecosystem, according to Deputy Prime Minister Vuong Dinh Hue.    

An artist’s view of the Korea-Vietnam Incubator Park (KVIP)

The KVIP, which went into operation in the third quarter of 2015 with an investment of more than US$21 million, is the result of a comprehensive cooperation program between the Government of Vietnam and the government of the Republic of Korea (RoK). The KVIP was designed to develop agricultural production in Can Tho and the entire Mekong Delta.

Can Tho has a legal framework governing the KVIP’s operations. The Prime Minister also issued Decision 1193/QD-TTg on piloting tax, credit, scientific research and human resource training policies specifically designed for the KVIP.

The KVIP is the biggest facility of its kind in Vietnam and has relatively adequate infrastructure and equipment ready to serve startup businesses and technology incubators, said Deputy Minister of Science and Technology, Pham Dai Duong, at a meeting on easing difficulties for the KVIP, held on March 7 in Can Tho.

A matter of concern is how to encourage Vietnamese businesses to register technology incubation projects in the KVIP. The KVIP has so far attracted only three incubator businesses with total investment capital of more than VND17 billion, covering a total area of over 13,000 square meters. The reason lies in the lack of Korean specialists’ assistance and the fact that technology incubation catering equipment has not been supplemented by the RoK. In addition, some preferential policies remain non-compliant with the Prime Minister’s Decision 1193/QD-TTg.

Deputy Prime Minister Vuong Dinh Hue told the Ministry of Industry and Trade to continue negotiating with the RoK to promote financial assistance for procurement of equipment and to get the RoK to send specialists to Can Tho. The Ministry of Industry and Trade will review Decision 1193/QD-TTg to confirm the KVIP’s operational model.

The deputy prime minister also told the Ministry of Finance to review preferential policies on import and export taxes and corporate income tax for pilot applications in the KVIP. The Ministry of Science and Technology will send technology incubation consultants to the KVIP. The KVIP should formulate policies to use scientists from universities in the city, develop specialist and technology databases, and strengthen communication and promotion to attract organizations and individuals from inside and outside the country to the KVIP.

The 4.5ha Korea-Vietnam Incubator Park (KVIP) is located in the Tra Noc 2 Industrial Park. It contains office buildings,

laboratories and experimental production facilities. The RoK has financed equipment for engineering, farm produce

processing, and seafood processing.

Thanh Tam