Vietnamese Government Introduces Incentives for Hi-Tech Parks Development
Hanoi, The Gulf Observer: In a bid to boost advancements in technology and innovation, the Vietnamese Government has announced a set of incentives to encourage investments in the development of hi-tech parks. Decree 10/2024/ND-CP, set to take effect from March 25, outlines a comprehensive package of incentives aimed at fostering growth in this critical sector.
Under the new decree, hi-tech parks will enjoy investment incentives equivalent to those applied to localities facing extremely difficult socioeconomic conditions. Corporate income tax, export-import taxes, land fees, and credit incentives will be granted in accordance with existing regulations on investment.
Investments in hi-tech parks will be eligible for a corporate income tax rate of 10 percent per year for a duration of 15 years. This includes a four-year exemption and a subsequent 50 percent reduction for nine consecutive years.
Projects within hi-tech parks will be given priority in support programs for training, recruitment, research and development, technology transfer, hi-tech agriculture, and innovations. Private investors are now encouraged to participate in developing the technical and social infrastructure system for hi-tech parks.
The decree emphasizes the importance of planning housing and social infrastructure with seamless connectivity to hi-tech parks to serve the workforce within these zones. The social infrastructure system includes cultural works, parks, gardens, green spaces, and recreation complexes for public use.
State budget and official development assistance will prioritize investments in research centers, large-scale international standard labs, high-tech incubators, training centers, and information infrastructure.
Existing hi-tech parks can be expanded if their occupancy rate reaches 60 percent or higher. The new decree aims to reinvigorate the development of hi-tech parks, addressing existing limitations in mechanisms and promoting their role as key players in the Industry 4.0 landscape.
Researchers from the Việt Nam Economics Institute underscore the critical role of hi-tech parks in propelling science and technology, especially in the context of rapid changes in the global and domestic markets. They emphasize that fostering innovation requires a conducive environment, including favorable policies for personal income tax and long-stay visas for experts working in hi-tech parks.
Currently, Vietnam hosts three hi-tech parks: one in Ho Chi Minh City, one in Hoa Lac, Hanoi, and one in Da Nang. The HCM City Hi-tech Park, established two decades ago, has attracted 160 projects with a total investment of US$12 billion. The Da Nang Hi-tech Park, founded in 2010, has drawn 26 projects with a total investment of $852 million. The Hoa Lac Hi-tech Park, established in 1998, spanning around 1,600 hectares, has attracted 102 projects with a total registered capital of $4.04 billion and hosts prominent tech companies such as Viettel, FPT, Hanwha Aerospace, and Nidec. The new decree is anticipated to propel these parks forward, facilitating their growth in the ever-evolving landscape of technology and innovation.
