HO CHI MINH CITY HI-TECH PARK

Project Concept

Objectives:

Create a favorable environment for attracting foreign investment in high-tech field.

Serve as an incubator for new technologies and know-how.

Develop human resources needed for a knowledge-based economy.

Functions:

Support the establishment and operation of high-tech based domestic and foreign companies.

Encourage the manufacturing of new high-quality, cost-efficient products and equipments.

Support R & D in Universities, research institutes and companies for creating and commercializing new products.

Provide world-class facilities (Housing, Green Parks, Telecommunication, Health care, Schools, Shopping and Recreation) to scientists, and employees, domestic and foreign experts working at High-Tech Park

Location of HCMC High-Tech Park

In the heart of ASEAN countries, at the center of Focal Economic Region of the South (Ho Chi Minh City-Binh Duong-Dong Nai-Vung Tau) ? the biggest economic region in Vietnam.

5 km from HCMC downtown, 17 km from Tan Son Nhat international airport, 15 km from Saigon port.

Proximity to the HCMC National University.

Easy access to many large Industrial Parks of the Region.

INFRASTRUCTURE

Water supply

The water is supplied from Binh An water plant through 1,000 mm die. Pipeline and connected to the Saigon High Tech Park (SHTP) water distribution system. Water pressure in SHTP internal distribution system can be up to 20m. Also the water supply is supplemented by wells inside the SHTP.

Water supply capacity: 8,400 m3/day.

Water charge: 0.2 USD/m3

Power supply

Power is supplied from the 220/110 Kv Saigon-Cat Lai station.

Electricity charge:                                0.08 USD/Kwh

Drainage & Sewerage

There are two underground concrete pipe systems separately, one for storm water drainage and one for waste water in the zone.

Three sewage treatment plants will be built:

1st station:            45,000 m3/day capacity.

2nd station:           35,000 m3/day capacity.

3rd station:            20,000 m3/day capacity.

Rate of waste water treatment:

Inhabitant area: 200 liter/person/day.

High tech industry:                              40 m3/ha/day.

Educational service area:  20 m3/ha/day.     

Telecommunication

500 IDD telephone lines will be supplied to the first phase. Base on demand of second phase, more IDD lines will be equipped accordingly.

Road system

The internal road system in the SHTP is 19.91 km long with asphalt-concrete pavement and linked directly to Hanoi highway. Total road & parking surface is 220,437 m2.

Investment in High-Tech Park

Foreign investors are invited to participate as:

(a) Manufacturers/Service Providers

(b) Technology Incubators

(c) Infrastructure developers

General preferential policy

Land leasing period is up to 50 years (70 years for infrastructure developers).

Value of intellectual properties, patents, know-how, technological process and technical services? can be used as legal capital contribution to establish a joint venture enterprises. Industrial ownership and intellectual property are protected.

Lowest profit-remittance tax: 5%.

Organizations operate in High-Tech Park will use post and telecommunication services at preferential fees offered by service providers of the High-Tech Park.

Business Income Tax

Manufacturing enterprise:

Export above 80% of production:  10%

Four (4) years from the first making profit year: Exemption          

Four (4) years thereafter:  Reduction of 50%

Export from 50-80% of production:  15%

Two (2) years from the first making profit year: Exemption          

Two (2) years thereafter:  Reduction of 50%

Export under 50%:  15%

Two (2) years from the first making profit year: Exemption

Service enterprise:  20%

One (1) year from the first making profit year:   Exemption

R & D facilities & Incubator centers:  Exemption

LIST OF PRIORITY BUSINESS SCOPE IN HIGH TECH PARK

MANUFACTURING FIELDS:

1. Precision Machinery

Measurement analysis  and Control equipment

Supporting Industries for machine-building industry

Industrial Robots, CNC machinery

CAD/CAM/CIM hardware and software, industrial computer system

Machinery, Opto-electronic components and equipments, micro machines, high precision machine

High-tech medical equipment

Rapid prototyping

Machine details and components for Aviation service 

2. Info-telecommunication and electronic

Information technology: software technology, multimedia technologies.

Telecommunication equipment, digital transmission sets.

IC Board Packaging technology, IT hardware (ASIC, VLSI ..); peripheral component of PC sets.

Opto-electronic technology (laser tools, ultra-red and solar cell equipment)

3. Bio Technology

Advanced pharmaceutical technology. Tropical-material based application.

Molecular Biology, Strain modification

Advanced Food processing, Biotechnology in agriculture-forest-sea product fields

Environment Biotechnology

4. New materials, new energy resources

Cryogenic & ultra ?clean materials, technical ceramic

New Alloy R&D, composite material for traditional industries. Clean energy processes

New energy resources R&D, new principle-based engines, fuel cells.

SERVICE AND TECHNICAL SUPPORTS:

R&D activities

Human Resource providing:

Training on job. Vocation for hi-tech technician.,

Technology Institute.

Re-training for Industrial Park & EPZ technicians,

High class technology management experts.

Incubators:

Technology transfer, consultation.

Office & laboratory machinery leasing

Financial services:

Banking,

Risk Fund,

Financial leasing

Real estate activities:

Leasing (offices, laboratories, plants, ?build to suit? building)

Business center and entertaining park.

High-tech Businessman Club. Social Club, Science and technology association.

Some hi-tech park services opened for Hi-tech Park surrounding public.

THE SOFTWARE INDUSTRY IN HO CHI MINH

LABOR:

1,500 software technicians (50% of the national software workforce) working in 100 companies.

TRAINING SYSTEM:

3,500 IT BAs and Engineers graduate every (2000 from public universities and 1500 from private universities)

1,000 IT students overseas and this number will increase by 200 students annually

Training co-operation programmes with foreign partners: APTECH, INFORMATICS COLLEGE, KENT & VCCI, MICROSOFT, ORACLE, CISCO?

TELECOMMUNICATION INFRASTRUCTURE

Current transmission speed nationwide:

200 Mb/s

Since 2000, government?s measures for improving telecom and Internet performance. Priority given to software industry.

SOFTWARE PARKS:

Saigon software park: 25 companies operating since Sep.2000

Quang Trung Software City: total area of 39 ha with 51 domestic and foreign companies in operation

OBJECTIVES FOR 2005

Annual output of approximately US$ 500 million   (US$ 200 million from local consumption of US$ 300 million from exporting software products and services. 25,000 staff working in the software industry . Average growth rate of 40% per annum

PROJECTS CALLING FOR INVESTMENT

1. Quang Trung Software City

2. Implementation of CYBER PORT (Broadband Internet services)

3. Construction and operation of training centers

WOOD PROCESSING INDUSTRY

CURRENT SITUATION:

Viet Nam has 4 advantages in the production and export of wood products: geography, natural resources, labor force, macro-economic stability

Geography: Viet Nam is located at the center of South East Asia with several sea ports, and stands very close to countries endowed with large quantities of tropical wood such as Indonesia, Malaysia, New Zealand?

Rich forestry resources: numerous types of valuable wood suitable for the production of quality wood produces.

Abundant labor force: a work force of 37 million people (50% of the population). Relatively low wage, several times lower than that of other regional countries, only 1/3 of Thailand, 1/30 of Taiwan, and 1/26 of Singapore.

Political stability and effective policy reforms give  way to economic growth.