After 10 years of construction and development, Saigon Hi-Tech Park (SHTP) has become a powerhouse for scientific and technological development in Ho Chi Minh City. To date, SHTP has attracted many world-acclaimed corporations, making SHTP a reliable address for hi-tech investors and an important element in economic restructuring in the city. Vietnam Business Forum has an interview with Dr Le Hoai Quoc, Director of SHTP Management Board, on this aspect. Hong Anh reports.
For the past 10 years, SHTP has completed its first-phase tasks with impressive results. How do you assess these successes toward developing operating strategies for the second phase?
After nearly 10 years of construction and development, SHTP housed 61 enterprises with a total investment capital of US$2.04 billion, of which 25 are in production and 12 are under construction. Although the number of operating companies is low in relation to total registrations and licences in the hi-tech park, this shows initial successes in attracting hi-tech investment capital and contributing to overall hi-tech development in the city. 25 operating businesses are playing a significant part in economic restructuring and export of the city. SHTP has witnessed rising export turnover of hi-tech products over the years, with US$1 billion in 2011 (Intel alone accounted for US$450 million) and created more than 17,000 jobs, thus helping uplift the face of the city’s northeast region and District 9 area. These figures will increase when other projects start operations.
From what we saw and did in the first phase, we will focus more on improving investment environment by introducing policies, processes and one stop shop procedures to address problems facing investors in the fastest manner in the second phase of development. We are ready to satisfy business site and necessary technical infrastructure for businesses to carry out their projects and go into operation. Besides, we take into account developing supporting industries for hi-tech investors in an effort to expand the ripple effect of projects in SHTP.
What investment attraction mechanisms will be applied in the second phase?
Global financial crisis and economic recession in recent years have caused a profound effect on foreign investment flows into SHTP. In the current context of financial squeeze, apart from State-funded capital key infrastructure investment, SHTP Management Board will study and propose investment capital mechanism for the second phase, aiming to mobilise financial resources in various forms and ways. We will try to reduce State funds by mobilising resources from all economic sectors.
What is your opinion about production capacity of enterprises in SHTP, especially their added value?
We have criteria for assessing business activities in SHTP: Technological products at the time of project registration and added value of such products in SHTP; ratio of disbursed capital to registered capital; import and export situation; research and develop (R&D) investment. Investment value US$2.04 billion has created the image of hi-tech park.
But, many businesses do not turn out products without high added value. It is worth thinking as some hi-tech projects are labour-intensive. Hi-tech products like exported micro motors for cars are made in SHTP but all research and design activities are done in Japan before that. This shows added value of products is very low SHTP. It is quite clear that the true value of enterprises in SHTP is now the labour of workers.
Could you tell us more about operating directions SHTP will follow in the future, aiming to build Ho Chi Minh City into a scientific and technological centre in Vietnam and the region?
In the upcoming phase, we will concentrate on attracting investors with source technology and quickly access advanced technologies to narrow the tech divide and play a greater part in shifting the city’s economic growth paradigm.
SHTP will direct and guide supporting industries to supply materials and components for hi-tech projects to generate ripple effect of SHTP hi-tech projects on the city in particular and on the whole country in general. Besides, it will promote the capabilities of scientific research and technical application to gradually build and uplift internal capacity, mastery and creation of technology to create a technical foundation for the cause of industrialisation and modernisation.
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