Saigon High-tech Park in the Driving Seat

3:26:29 PM | 7/8/2005

After one year’s operation, the Saigon High-tech Park (SHTP) has attracted 26 projects, capitalised at US$1.06 billion. These include nine projects in manufacturing semiconductors and micro-circuits for information technology, eight projects in precise mechanics, three projects in manufacturing telecommunication equipment, three projects in bio-tech, two projects in training and one project in building warehouses. Seventy per cent of these projects have been accepted and two projects have been licensed.

Expectations for SHTP

Alongside industrial parks and export processing zones in Ho Chi Minh City, the SHTP has made progress attracting more foreign investors. However, the SHTP has its own attractiveness, ambition and position among investors. The management board of SHTP hopes that the park will become a driving force in Ho Chi Minh City in high-tech as a leading centre for high-tech research and development in Vietnam, capable of providing support for other industries. Therefore, the SHTP has developed its strategy to attract domestic and foreign universities and research institutes to be involved in new technology research and application.

The city has considered great resources of world leading multi-national firms in high-tech an important factor for the formation and development of the SHTP. In particular, firms with backbone technologies will help accelerate the development and transfer of modern technologies to domestic companies. With many favourable policies and a ‘one door’ mechanism with the SHTP management board acting as the focal point in managing projects in the park, Ho Chi Minh City is calling for more investment in the park. Le Thanh Hai, chairman of the Ho Chi Minh City People’s Committee, said that the local authorities would help accelerate compensation and site clearance to rapidly give land to investors.

The SHTP is also an incubation of high-tech start-ups. Ho Chi Minh City will create most favourable conditions for domestic enterprises to develop. One of the factors having won praise from investors is resources. SHTP has considered its top focus to train and provide high quality human resources for projects developed in the park. The SHTP is expanding its training co-operation with the Ho Chi Minh City National University, the Grenoble University, and the French Energy Centre for training experts. Also, the SHTP has offered great incentives for domestic and foreign experts to work in or co-operate with the SHTP.

More importantly, Ho Chi Minh City wants to create a harmonious development environment for both multi-national firms and domestic enterprises, fostering close co-operative ties between SHTP and investors, thus helping create a technological stimulus and accelerate the development of support industries.

Active investment promotion activities

Apart from developing infrastructure facilities and rapidly stabilising and perfecting investment attraction mechanisms, Ho Chi Minh City has always considered it important to call for domestic and foreign investors, deciding the SHTP’s success. The city has boosted marketing activities abroad, introducing information at international fairs and exhibitions, as well as on the Internet or via the Vietnamese embassies in foreign countries.

Investment promotion activities implemented since 2004 have gained initially significant results. Many investors have appreciated opportunities offered by the SHTP and accepted the invitation to go to Ho Chi Minh City for further study. Many high-tech firms in Japan have made contacts with Ho Chi Minh City. The local authorities and the SHTP management board, in turn, organised trips to foreign countries to introduce the park to foreign investors. For example, in May 2004, Ho Chi Minh City sent an investment promotion delegation to Japan to promote co-operative ties with local high-tech firms. During the stay in Japan, the delegation met officials from the Japanese Ministry of Economics, Trade and Industry, the Japan International Co-operation Agency (JICA), the Japan Bank for International Co-operation (JIBC), The Japan External Trade Organisation (JETRO), organisations and business associations, such as Kaidaren, and famous firms, including Renesas, Sanyo, Trecenti Technology and Nidee and enterprises in Osaka, Kobe and Hyogo.

At the same time, the SHTP has built a database about potential partners in high-tech, financial investors, and high-tech service companies for market, customer and rival study. Over 100 domestic and foreign investors have explored and invested in the park so far. Hewlett Packard was the first partner to sign an investment contract with the SHTP. This is a project within a plan of ten satellite factories, manufacturing information technology parts and equipment in many countries around the world. Also, many domestic and foreign investors are negotiating their contracts. Nugen Biotech Vietnam is the first company in biotech, one of four high-tech fields of investment encouragement in the SHTP.

With efforts being made to improve the investment environment by the Government and Ho Chi Minh City, investment attraction in Ho Chi Minh City will improve and the SHTP will become an attractive address for investors.