Ho Chi Minh City

HCMC welcomes technological investment in SHTP

The approval of the Ho Chi Minh City (HCMC) People’s Committee to the heavy investment of US$777.29 million in 9 businesses sited in Saigon Hi-tech Park (SHTP) has signaled the warm welcome of the municipal authorities to the capital flow for technological enterprises at present.

Saigon Hi-tech Park. (Photo: SGGP)

Saigon Hi-tech Park. (Photo: SGGP)

In May 2019, there were 14 investors, 5 of which are foreign, visiting SHTP for investment purposes. However, only the projects of Key Tech Engineering Co., worth VND46 billion (approx. $1.99 million), and of PEC Vietnam Co. Ltd., worth $5 million were licensed. Compared to previous years, this figure was so tiny, since SHTP has always been the hot spot of international technological investment, with an average capital attraction of around $500 million per year.

The reason for this sad state is that SHTP’s management had to wait for the new formal land lease rate from the authorities.

The other 6 projects are Research & Development ones. Among them, the project for HDKING R&D Center for High Technologies focuses on facial recognition system, making use of Artificial Intelligence and Big Data, for security, traffic and social purposes. Others concentrate on cloud computing and virtualization technology in establishing an e-government and smart city; irradiation technology for new material technologies; nano technology in the medical field; Internet of Things and AI in manufacturing robots and creating virtual reality; piloting new technologies in the field of aerospace.

These 6 projects are sited in the fully equipped SJTP area in accordance with SHTP’s development strategy (divided into 3 stages of starting up from 2002-2010, forming from 2011-2020, and speeding up for hi-tech innovation from 2020 on).

It is expected that the 6 project will create more than 100 new technological products in the fields of IT, precision mechanics and automation, biotechnology, new energy and material.

As said by Head of the Management Board of SHTP Le Bich Loan, right after receiving Decision No.3907/QD-UBND issued on September 13, 2019 about annual land lease rate from April 9, 2018 to December 31, 2019, her office immediately aided all investors in need to complete their documents. That has resulted in the 9 approved projects mentioned above, one of which is an FDI in the field of microelectronics.

“The success of capital attraction in those 9 projects has helped SHTP fulfill its goal of Foreign Direct Investment (FDI) this year. Particularly, the FDI capital now reaches $655.5 million, higher the registered number of  $200 million, while the domestic one is $146.5 million, higher than the registered capital of $100 million, said Ms. Loan.

This impressive accomplishment demonstrates that the municipal authorities and SHTP’s management always strive to adjust policies and improve facilities to meet the demands of potential investors and gain the most satisfactory performance.

HCMC is trying its best to facilitate the investment process and promises to carefully consider all recommendations as well as tackling arisen problems so that investors feel comfortable, stated Chairman of the HCMC People’s Committee Nguyen Thanh Phong.

In the upcoming time, SHTP will focus more on R&D activities in order to better contribute to the establishment of a highly interactive innovation district in the East of HCMC.

By BA TAN – Translated by Huong Vuong

Other news