1. What are the advantages of investing in the Ho Chi Minh City Hi-Tech Park (SHTP)?
- SHTP is located in Ho Chi Minh City, the most dynamic economic region in the country; the city consistently records an annual GDP growth rate approximately 1.5 times higher than the national average (reaching 1.77 times in 2012).
- It is situated amidst a network of 43 industrial parks and export processing zones across Ho Chi Minh City and neighboring provinces within the Southern Key Economic Region.
- It enjoys a strategic location near the airport (18 km away) and key ports (8 km from Cat Lai Port), sits at the intersection of Hanoi Highway and the Trans-Asia Highway, and is located on Ho Chi Minh City’s first metro line—the Ben Thanh–Suoi Tien line (at Station No. 12).
- It is located in close proximity (within a 1 km radius) to, and maintains close cooperative ties with, a cluster of leading technology universities under the Vietnam National University, Ho Chi Minh City.
- It offers the highest level of investment incentives—including preferential land rental rates and corporate income tax breaks—specifically for high-tech projects.
- SHTP is authorized to provide on-site "one-stop-shop" administrative services for investors, covering high-tech status recognition, investment certificates, on-site customs clearance, and other necessary permits.
- It benefits from the strong commitment and support of the Government and the Ho Chi Minh City People's Committee.
- It provides an environment tailored to high-tech activities, featuring the presence of major high-tech corporations (such as Intel), supporting industry enterprises, and both domestic and foreign R&D firms.
- It hosts training and R&D centers that offer diverse forms of business-oriented support and collaboration.
2. What is the infrastructure, utility, and service landscape like at SHTP?
a. Utility Infrastructure: The Hi-Tech Park (SHTP) currently offers fully developed utilities in areas where infrastructure construction is complete. For remaining areas, we have flexible plans to ensure investor needs are met.
* Electricity: Automated system with stable power supplied by two 63MVA substations drawing from three independent sources (Thu Duc North, Thu Duc East, etc.). In 2017, SHTP will commission its own independent power plant with an initial capacity of 163MVA.
* Telecommunications: MAN broadband infrastructure based on a "single system – multiple services" model, capable of providing high-speed Internet access (ISDN, xDSL, FE/GE 100M/1000M). * Water: Designed capacity of 9,500 m³/day (upgradable to 24,300 m³/day), with a 3,500 m³ reserve storage tank for Phase 1 (300 hectares).
* Wastewater treatment: Treatment plant capacity of 5,000 m³/day (upgradable to 20,000 m³/day).
* Industrial gases: Supply of N2, O2, Ar, H2, etc.
b. Services: SHTP hosts an on-site customs clearance team and a BIDV bank branch, along with ATM networks from BIDV and Vietcombank, to serve investors and the workforce. In addition, SHTP provides comprehensive support services for investors, including security, employee shuttle services, industrial catering, landscaping, and more. Please visit the website of SHTP Development Co., Ltd. at http://www.shtpco.com for details.
3. Where can information regarding investment conditions and regulations for the Ho Chi Minh City Hi-Tech Park (SHTP) be found?
a. Basic information on investment conditions is available in the "Investment in SHTP" section of the SHTP website: www.shtp.hochiminhcity.gov.vn.
b. Investors may also contact the SHTP team directly via email at xtdt.shtp@tphcm.gov.vn or by phone at (848) 3 7360291 to receive assistance and guidance—whether by phone or email—or to arrange an in-person meeting.
4. What is the size of SHTP? What is the current status of land leasing?
- The total area of SHTP is 913 hectares, comprising two phases: Phase I covers 300 hectares, and Phase II covers 613 hectares.
- In Phase I, 95% of the land designated for high-tech manufacturing and 100% of the land designated for high-tech services have been leased out.
- Currently, SHTP is actively seeking investment for manufacturing land in Phase II and promoting the leasing of ready-built factories as well as land designated for research and development (R&D), incubation, and training activities.
5. Which entity is responsible for implementing the Hi-Tech Park project?
- The Management Board of the Ho Chi Minh City Hi-Tech Park (SHTP) is responsible for implementing the project using funding from both the city and central government budgets. Infrastructure construction is carried out through two affiliated entities: the Construction Investment Project Management Board and the SHTP Development One Member Limited Liability Company.
6. What investment sectors are currently encouraged at the SHTP?
(1) Microelectronics, optoelectronics, information technology, and telecommunications.
(2) Precision engineering, automation, and robotics.
(3) Biotechnology applied to agriculture, healthcare, and the environment.
(4) New materials, nanotechnology, and new energy.
7. What is the investment registration process for the High-Tech Park (SHTP)?
(1) Technology proposal/explanation => (2) Issuance of Investment Certificate => (3) Guidance on construction regulations
- All projects must complete Step 1 to assess their technological capabilities; this serves as the basis for approval to invest in the Ho Chi Minh City High-Tech Park and eligibility for high-tech incentives.
- The Investment Certificate is issued in Step 2, following the approval of the project's technology.
- In Step 3, the project investor receives guidance on construction regulations within the High-Tech Park to ensure compliance with the approved master plan.
8. Who evaluates the project? What are the costs?
- Projects are evaluated by the High-Tech Park's Scientific Council.
- The Scientific Council comprises professors and scientists from research institutes and universities within the city.
- Investors incur no fees for the appraisal of the technology proposal.
9. Conditions for eligibility for high-tech incentives
- The project falls within the following four high-tech sectors: (1) Microelectronics, optoelectronics, information technology, and telecommunications; (2) Precision mechanics, automation, and robotics; (3) Biotechnology applied in agriculture, healthcare, and the environment; (4) New materials, nanotechnology, and new energy.
- Total expenditure on research and development activities conducted in Vietnam accounts for at least 1% of total annual revenue for three consecutive years, and exceeds 1% from the fourth year onwards. - Average revenue from high-tech products must constitute no less than 60% of the project's total revenue for three consecutive years, and no less than 70% from the fourth year onwards.
- Personnel holding a university degree or higher who are directly involved in the project's research and development activities must account for at least 5% of the project's total workforce.
- Implementation of quality management systems (ISO, CMM, GMP, etc.). - Compliance with Vietnamese legal regulations regarding environmental protection.
10. How long does the investment registration procedure for the High-Tech Park take? What are the costs associated with obtaining the investment license?
- The investment registration procedure takes approximately 2.5 months, comprising 10 days for the technology explanation, a maximum of 45 days for registration and issuance of the Investment Registration Certificate, and 30 days for guidance on compliance with construction and zoning regulations.
- Investors do not incur any fees for obtaining the Investment Registration Certificate.
11. Which other government agencies must I work with to complete procedures before and after receiving the investment certificate?
The High-Tech Park (SHTP) operates under a "one-stop-shop" mechanism to best serve investors. Therefore, investors do not need to deal with any other administrative agencies.
12. What are the minimum and maximum land areas and the lease term available to investors at the SHTP?
The KCNC does not impose specific limits on land area. However, investors in high-tech manufacturing projects must ensure an investment density of 11–12 million USD per hectare. The current maximum land lease term is 50 years.
13. What are the land lease rates at the KCNC and the payment methods?
- Currently, lease rates for manufacturing and service land range from 0.6 to 1 USD/m²/year for Phase 1, and from 0.4 to 2.3 USD/m²/year for Phase 2, depending on the location and the type of enterprise.
- For land designated for research, training, and incubation activities, the highest level of preferential rates (potentially zero) applies to projects investing in these sectors.
- Investors pay 10% of the total lease amount upon signing the site lease agreement with the KCNC, and 40% upon receiving the investment certificate. The remaining 50% is payable within one year of signing the official land lease contract with the KCNC.
14. Does the KCNC offer leasing options other than land?
In addition to land leases, the KCNC offers ready-built factories and office space to meet investor needs, particularly those of small and medium-sized enterprises. 15. Besides land rental costs, what other fees and charges must investors pay while operating in the High-Tech Park (SHTP)?
Investors pay utility usage fees to service providers (for wastewater treatment, water, electricity, and industrial gas) and infrastructure maintenance fees ($0.48/m²/year).
16. Who are the current investors in the High-Tech Park?
The list of investors in the High-Tech Park can be found at: http://www.shtp.hochiminhcity.gov.vn/TinTuc/doanhnghieptrongkcnc/Lists/DSDoanhNghiep/danhsachdn.aspx
17. How long do investors enjoy tax incentives, and when do they begin?
- Investors are entitled to a 10% corporate income tax rate for 15 years, comprising a 4-year tax exemption (0%) followed by a 50% reduction (resulting in a 5% rate) for the next 9 years.
- Additionally, investors are exempt from import duties on: machinery, equipment, and specialized transport vehicles (with more than 24 seats) imported to form fixed assets; construction materials for fixed assets that cannot be produced domestically; and semi-finished products or components imported for processing into finished goods.
18. What are Vietnam's regulations regarding working hours? Are there limits on shift work?
- Current regulations on working hours are as follows: a maximum of 8 hours per day and 48 hours per week. Overtime work must not exceed 200 hours per year.
- There are currently no specific limits on shift work; however, business owners must register their shift schedules with the High-Tech Park management, and these schedules must be agreed upon and stipulated in the employment contracts with workers.
19. Besides tax incentives, does the Ho Chi Minh City Hi-Tech Park (SHTP) offer any other forms of support to investors?
- Assistance in obtaining multiple-entry visas for foreign personnel working on projects.
- Support regarding recruitment, training, legal consulting, seed funding, and shuttle bus services.
- Access to laboratory equipment at the Hi-Tech Park’s R&D center.
20. Is recruiting high-tech human resources in Ho Chi Minh City difficult?
SHTP is located in close proximity (within a 1 km radius) to, and maintains close cooperative ties with, major technology universities in Ho Chi Minh City. This advantage enables projects within SHTP to access a high-quality workforce, ensuring the smooth operation of projects in Vietnam. Key partner institutions include:
- Ho Chi Minh City University of Technology (Notable faculties: Information Technology, Chemical Engineering, Electrical & Electronic Engineering, Industrial Engineering, Mechanical Engineering, and Environmental Technology).
- University of Science (Notable faculties: Information Technology, Mathematics, Electronics & Telecommunications, and Materials Science).
- Thu Duc University of Technology and Education (Notable faculties: Electrical & Electronic Engineering, Mechatronics, Information Technology, and Industrial & Environmental Engineering).