Investment Opportunities

INVESTMENT OPPORTUNITIES IN HOALAC HI-TECH PARK

DEMAND AND EFFECTIVENESS OF INVESTMENTS INTO THE HI-TECH PARK, SOFTWARE CENTRE AND TECHNOLOGY INCUBATORS

I. HI-TECH ZONES:

Hi-tech parks play an important roles in creating an advantageous environment to attract foreign direct investments (FDI), especially multinational companies in high technology. Moreover, hi-tech park is also an attractive place for domestic and foreign science and technology (S&T) and oversea intelligentsia in research, creation and direct transfer of technology to the production and hi-tech entrepreneur incubation.

1, Receiving investment from foreign hi-tech companies and corporations

From networking with organizations and companies to researching reality companies which have registered to hi-tech zones, it can be seen that hi-tech parks could take the opportunity if we have the office ready as well as infrastructure, supporting services and human resources. Besides, the real opportunity is calling for investment in industries that serve hi-tech projects (Intel for example).

2, Accepting the trend to bring some phases of research and design to developed countries for processing

In nowadays global trend, the business strategy of leading corporations which globalized the origin technology has been applied in the field of research and design. India and China are two major markets that took the chance and finally became successful. The research and development section of Hoa Lac Hi Tech can join this trend if we create a group of national scientists and foreigner specialists who have been working with major corporates and research institutes.

3, Attracting Vietnamese intellectuals who lives in foreign countries

This is a valuable source which can act as the bridge between Vietnam and other potential foreign markets, especially in the field of high technology and science. The Communist party has advocated, the Government has had action programs, the only thing left is how ready we are for the foundation as well as working condition to attract this group to dedicate to Vietnam development. Hoa Lac Hi Tech need a proper progress to become a suitable institution.

4, Orienting, organizing and supporting

Beside three Hi Tech Parks in Hanoi, Da Nang, Ho Chi Minh, from now to 2030, there will be more Hi Tech Parks under the management of city halls. The vision is attracting more investment in high technology, contributing to create spillover effect, developing technology and science in the nation.

One of many advantages for investors of Hoa Lac Hi Tech is tax incentives. In specific, hi tech companies will have to pay only 10% incomes tax in 15 years, free income tax in 4 years and reduce 50% income tax in the next 5 years.

If these projects have large scale, latest technology or special investment, the 10% income tax incentives will be extended but not more than 30 years. This has to be approved by the Prime Minister.

II. SOFTWARE PARKS:

Until now, there are 8 software parks in Ho Chi Minh, Hanoi, Da Nang, Hai Phong, Can Tho, Thua Thien-Hue. Software park is considered a very successful model to attract and become manufacturing center, software outsource, technology employee supply. At the moment, there are many foreign companies from USA, UK, France,… have been operated in software parks around the country. The growth rate of companies in software parks increase 20-25% per year. The foundation of these software parks based on 6 elements:

1. Providing international standard foundation and service which satisfy current and future demand in research, development, produce and exporting software.
2. Continuing nurturing and forming software companies, instructing software engineer and business manager, satisfying demand within nation and overseas (include high level software engineer).
3. Providing friendly working environment, suitable living standard for software engineer (they will be able to live and work 24 hours a day).
4. Converging high quality technology and science education with many international certificates and diplomas such as: Cisco System, Cadence, Sun Microsystems, NIIT, Houston Community College System…
5. Encouraging investment from Vietnamese people who live overseas.
6. Developing the connection between the Government, Private sector and International collaboration. The software parks will attract many domestic and foreign companies, including software manufacture, training center, researcher, multi media companies, hardware manufacture. This is also a technology transfer center and a convenient place where domestic and foreign software companies can do business.

III. TECHNOLOGY INCUBATORS AND TECHNOLOGY START-UP INCUBATORS:

According to Government Decree No. 90/ 2001 / ND - CP of November 23, 2001, in Article 11, Paragraph 4, the Government encourages establishment of start-up incubators to guide and educate businessmen about start-up. In our country, there has been some seminars and workshop about Technology incubators as well as Technology start-up incubators.

1. Technology incubators support and improve technology which has potential to apply in reality or commercialize to sell in the market.
2. Technology start-up incubators support organizations, individuals to continue or improve their technology, legal procedure, investment, manufacture, business management, marketing and other service to establish start-up companies based on latest technology which has the potential to apply in reality as well as to sell in the market.
3. Technology incubators organizations, technology start-up incubators organizations provide advantageous conditions such as technical foundation, supporting service, necessary back up to help technology incubators, technology start-up incubators.

IV. BENEFITS OF INVESTMENT:

1.  With cities and towns where are Hi Tech parks and Software parks: develop economics, make more jobs, tax, motivate research and application, advance technology.
2.  With universities: motivate start-up trend in students, develop research and technology application, increase salary.
3.  With incubators’ partners: save customers research cost, increase marketing and investing opportunity, expand business, build up customer relations.
4.  With start-up business: access resources, reduce risk, shorten market integration, enhance business skill…