Last updated: Wednesday, March 29, 2017
Hoa Lac Hi-tech Park to Receive Strong BoostPosted: Tuesday, February 28, 2017
After nearly 20 years of operation, the performance of Hoa Lac Hi-Tech Park (Hanoi) has been not as high as expected to become an eco-smart city which gathers and links personnel training, research and development activities as well as provides high-tech services. The park is still being completed with a lot of shortcomings such as delayed site clearance, few high-tech projects and underinvested infrastructure. Prime Minister Nguyen Xuan Phuc’s recent working meeting with Hoa Lac Hi-Tech Park was expected to bring a breath of fresh air to the park in the future.
Nearly 20 years stuck in site clearance
According to a report by the Hoa Lac Hi-Tech Park Management Board, investment attraction results failed to meet expectations because the park was still fraught with site clearance and infrastructure construction. Site clearance has not been completed after nearly 20 years due to prolonged delays. For the time being, 243 ha of land has not been cleared. Technical infrastructure systems lack uniformity and synchrony due to multiple investment phase-outs, mainly because of fund shortages. Whenever the Hoa Lac Hi-Tech Park Management Board goes to work with central authorities, it is repeatedly asked “Still site clearance?” Deputy Minister of Science and Technology Pham Dai Duong, Head of the Hoa Lac Hi-Tech Park Management Board, said, the Management Board is preparing for a new phase - accelerating, attracting investment capital and developing scientific and technological potential.
As a scientific institution and an investor, the Vietnam Academy of Science and Technology invested in three high-tech projects here, with the largest being the US$600 million Vietnam Space Centre. The academy expected that infrastructure will be completed soon because unstable power supply gives rise to product damage. Likewise, FPT Corporation hoped that the infrastructure must ensure liveable and workable to attract residents. Hospitals, houses and traffic works for people working in the Hoa Lac Hi-Tech Park are very important. FPT has to spend about VND30 billion a year for employee bus services. VNPT Group also expressed its desires for having rapid bus transit routes from Hanoi to Hoa Lac Hi-Tech Park. Hanoi reported to have opened a rapid bus route to the park right after the working meeting of the Prime Minister. Hanoi and Ministry of Science and Technology will work hard together to speed up the development of Hoa Lac Hi-Tech Park.
Desire to become 'Silicon Valley' of Vietnam
The Hoa Lac Hi-Tech Park Management Board said the goal of the high-tech park is to build a scientific and technological city, an eco-smart city and a facility enabling high-tech human resources training centre, high-tech research and development, high-tech incubation, high-tech business start-up, high-tech application and transfer, high-tech product production and sale, and high-tech service supply. To date, the Hoa Lac Hi-Tech Park has achieved certain positive results, with a gradual shaping of the high-tech park. Prime Minister Nguyen Xuan Phuc said, as expected to become the Silicon Valley of Vietnam, the Hoa Lac Hi-Tech Park Management Board must change their thinking and methodology in addition to standard infrastructure investment and project selection
Regarding policy and fund for the Hoa Lac Hi-Tech Park, Prime Minister Phuc made quick decisions. The Ministry of Finance, the Ministry of Planning and Investment, and the Ministry of Science and Technology must appreciate and develop Hoa Lac Hi-Tech Park as a key prioritised project that needs capital and support. “Prime Minister or Deputy Prime Minister should come here every six months to see the progress, not a one-off visit,” he stated.
With respect to capital for site clearance, the Prime Minister requested Hanoi City and the Hoa Lac Hi-Tech Park Management Board to complete site clearance right in 2017. The Ministry of Planning and Investment will coordinate with the Ministry of Finance to report to the Prime Minister on funding plans for site clearance and infrastructure construction at Hoa Lac Hi-Tech Park.
With regard to policy, provisions in the Government Resolution 41/NQ-CP on tax incentives on accelerating information technology development and application in Vietnam issued on May 26, 2016 have not brought to life. According to the Resolution, incomes from digital content and software service projects are subjected to software tax stipulated in the Law on Corporate Income Tax (10 per cent in 15 years for newly established enterprises). People working in high-tech industry are also granted a half cut in personal income tax.