SAIGON HI-TECH PARK: HIGH-TECH HEARTLAND (11/02/2009)
Being one of Vietnam's only two national hi-tech parks and considered one of Ho Chi Minh City's five focal economic projects serving as the driving force for the city's development until 2010, Saigon Hi-Tech Park (SHTP) has received exceptional supports from both the central and local governments, as well as from other relevant state agencies. As a result, the Park has been authorized to offer the highest tax incentives and one-stop investment application service to investors.
At the same time, the Park has a number of advantages, such as close proximity to many educational institutions, airports, and seaports and close connection with local universities, while its dedicated and experienced stall creates an environment conducive to tenants operating successfully. SHIP also offers a "one-stop-shop" application service and highest tax incentives allowed by the law to help investors conduct their businesses.
SHTP' S LOCATION: EASY ACCESS
* 9.3 miles (15 km) Northeast of downtown HCMC.
* 11.2 miles (18 km) from Tan Son Nhat Airport.
* 7.4 miles (12 km ) from Sai Gon Harbour, in proximity to Tan Cang Port, Thi Vai port and Cat Lai port.
* In the center of the Focal Economic Region in the South of Vietnam, including HCMC and Dong Nai, Binh Duong, Binh Phuoc, Tay Ninh, Long An, Ba Ria Vung Tau provinces.
* At the crossroad of main highways: National Highway No 1 connecting the North to the South, and Trans Asia Belt Highway connecting HCMC to Phnom Penh(Cambodia) and Bangkok(Thailand).
* Proximity to 55 industrial zones and export processing zones surrounding HCMC and other major cities, providing the supporting and clients base to SHTP tenants.
* Adjacent to HCMC National University with over 15,000 students in science and technology.
* Close to Thu Duc Golf Course.
|OUR KEY TENANTS
■ Intel Products Vietnam
- Country of origin: United Slates
- Total Investment: $1billion
- Scope of activities: assembly, testing and packaging of chipsets
■ Nidec Corporation
- Country of origin: Japan
- Total Investment: $I billion (2005-2010 period)
- Scope of activities: Nidec Vietnam: manufacture of precision motor fans for computer hard drives Nidec Sankyo: manufacture of precision stepping fans and optical pick-ups for computers
- Country of origin: Vietnam
- Total Investment: $36 million
- Scope of activities: R&D centre for software development
- Country of origin: Denmork
- Total Investment: $25 million
- Scope of activities: manufacture of super micro acoustic parts for cell phones.
■ Jabil Circuits
- Country of origin: United States
- Total Investment: $100 million
- Scope of activities: manufacture of printed circuit boards and ink jet printers.
• Corporate income tax (CIT) of zero per cent for the first four years, starting from die first profit making year, followed by nine years at 5 per cent and 1$ years at 10 per cent. CIT exemption and reduction of five years for investment expansion
•VAT and import duty exemption for:
- Equipment and machinery imported as fixed assets of projects and spare pans and components attached thereto:
- Construction materials imported to build the fixed assets for the project that arc not locally produced;
- Materials and supplies and specialized means of transport of more than 24 seats included in the techno-logical process of the project.
• VAT of zero per cent and export duty exemption for high-tech products.
• Similar personal income tax (PIT; for both local and foreign workers at projects operating in SHTP.
• Competitive fees
Eligible investors are entitled to competitive land, office and factory rentals and other utility fees compared with those at other industrial parks in the region.
• Soft incentives include:
- Multiple entry visas for expatiates
- One-stop investment application service
- On-site and electronic customs clearance
SHIT' is focusing on calling for investment in four sectors of priority: (1) micro electronics, information technology and telecommunications, (2) precision mechanics and automation. (3) Biotechnology applied in agriculture, pharmaceuticals and the environment, and (4) nanotechnology, and new and advanced materials.
Investment in SHTP can be in multiple forms, be it high-tech manufacturing, high-tech services (call centers, data centers, software development), research and development, incubation or training.
Following its inception in late 2002, Saigon Hi-Tech Park has granted investment licenses to 25 projects with total committed capital of $1,366 billion. Key tenants include Intel Corporation (US), Jabil Corporation (US), Nidec Corporation (Japan), Sonion A/S (Denmark) and FPT (Vietnam).
SHTP's development strategy to 2010 includes
• Calling on investment from high-tech corporations owning source technology, with an emphasis on those in micro electronics, semi conductors and information technology, to complete the supply chain of these sectors at the Park. With Intel's facility already inside the Park, SHTP has been in dose contact with several of its suppliers and customers including chose who are downstream original design manufacturers and contract manufacturers.
• Developing a network of high-tech services such as call centers, data centers, software development and web applications, and business process outsourcing centers. To make infrastructure utilities available for these services, SHTP has finalized negotiations with several Vietnamese and Taiwanese investors that will begin constructing Internet linked office buildings tin lease. Equipped with quality telecom infrastructure, the buildings will be ready by mid-2008 and will supply a large amount of quality office space for lease at competitive prices to create the best environment possible tot tenants investing in high-tech services.
• Inviting prestigious technology universities and training institutions to open branches or set up facilities inside the Park. These institutions will join hands with the SHTP Training Centre to prepare a quality workforce for SHTP tenants.
• Developing R&D facilities, including five laboratories for nanotechnology, precision mechanics, information technology, semi-conductors and bio-technology. In partnership with the Nidec Corporation, SHIP will finish the construction of its first two laboratories in precision mechanics and nanotechnology on in area of 4.000sqm by the end of 2007.
Given its experience in successfully closing the deals with leading hi-tech corporations, the strong support it receives from the central and local government and its competitive advantages in terms of workforce, tax incentives and location, Saigon Hi-tech Park is the ideal destination for high-tech investment in Vietnam ■
MILESTONES OF DEVELOPMENT
|■ Late 2002
- Established with the approval of the Prime Minister
||■ In 2005
- Issuance of investment license to the Nidec Corporation
- Establishment of the SHTP Training Centre in 2006
|■ In 2003
- Approval of Master Plan
- Issuance by ihe government of Decree 99 on the code of conduct at hi-tech parks
- Framework Agreement signed with Hewlett-Packard Corporation
||■ In 2006
- Selected as one of the five focal economic projects in Ho Chi Minh City during 2006-2010 period
- Issuance of $I billion investment certificate to Intel Corporation
- Establishment of SHTP Incubation Centre
|■ In 2004
- Issuance by the government of Decision 53 on incentives in hi-tech parks
- Establishment of the SHTP R&D Centre
||■ Early 2007
- Issuance of $100 million investment certificate to Jabil Corporation
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