What are High-Tech Industrial Parks?
A high-tech urban area (also known as an innovative technology urban area) is an urban area that concentrates on many technology companies, startups and talents. A high-tech urban area has a strong ecosystem of venture capital, many talents and resources to support the development of technology companies.
High-tech urban areas have two outstanding features, which are:
Urban innovation
Innovation drives technological advancements that improve product quality and make production processes more efficient, increasing productivity and economic growth. Key metrics for evaluating innovation in high-tech cities include:
- Foreign direct investment (FDI) in high-tech industries
- Venture capital funding
- R&D spending
- International patent filings.
- The number and size of technology startups
The concentration of talent in the city
High-tech urban areas attract and retain the best technology workers through vibrant startup ecosystems that offer opportunities to work with cutting-edge technologies and innovative business models. The criteria for assessing the concentration of talent in high-tech urban areas are the quality of higher education, the educational level of the population, the proportion of the population aged 20-40, and the proportion of employment in high-tech industries.
Read more: Key Software Development Outsourcing Trends Defining 2025 and Beyond. If you want to explore more about the high-tech industry in Vietnam or IT Outsourcing services, contact EDUTO to unlock practical insights into the Vietnamese technology landscape.
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Key High-Tech Industrial Parks in Vietnam
Vietnam has three high-tech industrial parks, including Saigon, Hoa Lac and Da Nang.
Saigon Hi-Tech Park
Ho Chi Minh City High-Tech Park is considered the most successful high-tech park among national high-tech parks, providing and nurturing scientific and technological ideas, attracting capital, technology, high-tech human resources at home and abroad, adapting to the 4.0 Industrial Revolution.
- Value
Ho Chi Minh City Hi-Tech Park (since 2002) is considered the most successful in Vietnam with 160 valid projects and a total investment capital equivalent to more than 12 billion USD; of which, there are 51 FDI projects with a total investment capital of more than 10 billion USD (accounting for 84% of total investment capital); nearly 110 domestic projects with a total investment capital of about 1.9 billion USD (accounting for 16%).
The export turnover of high-tech products of Ho Chi Minh City Hi-Tech Park has gradually increased, reaching 20.9 billion USD (in 2021), more than 23 billion USD (in 2022) and is expected to reach 26 billion USD (in 2023).
- Priority Investment Areas
Ho Chi Minh City High-Tech Park is divided into four priority areas for investment attraction: Electronics - information technology - telecommunications; Precision mechanics - automation; Biotechnology; New materials - new energy. These four areas are priority areas for research, development and application of technology to proactively participate in the 4th Industrial Revolution.
- Technology enterprises
Ho Chi Minh City High-Tech Park attracts more than 10 leading high-tech corporations in the world including: Intel, Jabil, Rockwell Automation (USA), Nidec, Nipro, NTT (Japan), Samsung (Korea), Sonion (Denmark), Datalogic (Italy), Sanofi (France), TTI (Germany) and leading technology enterprises in Vietnam such as FPT...
- Projects:
In 2023, Ho Chi Minh City High-Tech Park has 35/60 projects with R&D activities (31 high-tech manufacturing projects and 4 research projects); of which 11 projects have technology transfer activities.
The domestic added value in the structure of product value created at Ho Chi Minh City High-Tech Park reached about 6 - 8%/project in the period of 2011 - 2012, increasing to 20%/project in the period of 2013 - 2022. Ho Chi Minh City High-Tech Park has attracted 23 high-tech supporting industrial production projects and three high-tech supporting industrial service projects, with a total investment capital of 512.72 million USD.
- Technology talent:
The number of employees working in the high-tech park is 51,910 people, of which 51,340 are domestic workers and 570 are foreign workers (in 2022). The average labor productivity of a high-tech park is 17 times higher than the national average.
Ho Chi Minh City Hi-Tech Park aims to attract 3 billion USD in investment in the 2021-2025 period, including successfully attracting 1-2 high-tech corporations in the world.
Hoa Lac Hi-Tech Park
Hoa Lac Hi-Tech Park (since 1998) is the first hi-tech park in Vietnam. After 25 years of development (1998 - 2023), Hoa Lac Hi-Tech Park is gradually becoming a science and technology city, an ecological city, a smart city; a place to concentrate and link human resource training, R&D, incubation, application, transfer, production and trading of high-tech products.
- Value:
In 2022, the revenue of enterprises in Hoa Lac High-Tech Park will reach about 18,000 billion VND.
Hoa Lac Hi-Tech Park has attracted 106 investment projects with a total registered investment capital of about VND 98,350 billion and USD 702.57 million (March 2023). Of the 106 investment projects (with 92 domestic projects and 14 foreign investment projects), 60 projects are in operation, contributing to creating jobs for about 14,500 skilled workers.
- Priority Investment Areas
Vietnam’s leading technology, information technology and communications enterprises have all gathered in Hoa Lac Hi-Tech Park. These enterprises have created technology products that have spread, led and impacted a number of industries and fields, forming an ecosystem of science, technology and innovation.
Industry groups such as information technology, communications and biology have formed links between research, training and industrial production.
- Technology enterprises
Many investment projects have mastered core technology, achieved important achievements, and initially spread and contributed to the economy in the recent period. Among them, there are major investors in various high-tech fields such as: Viettel Group, FPT Group (FPT Software, FPT University), Hanwha Aerospace Group (Korea), Nidec Group (Japan).
Oriented to develop into a science and technology urban area, Hoa Lac High-Tech Park in the future will become a place of advanced intelligence and technology, a center for training high-quality human resources, and a center for scientific research and high technology in Vietnam.
Da Nang Hi-Tech Park
With the goal of developing Da Nang into a high-tech, smart and unique city, Da Nang will focus on developing high technology with a land area of about 1,710 hectares. The Da Nang Hi-Tech Park, established in 2010, plays a crucial role in this vision. It has attracted numerous projects and investments, creating a vibrant environment for innovation.
- Value Proposition
The Da Nang Hi-Tech Park offers a compelling value proposition for investors. With incentives such as a corporate income tax exemption for the first four years and a preferential tax rate of just 10% for 15 years, the park aims to create an attractive environment for technology enterprises.
Additionally, investors benefit from exemptions on import taxes for machinery and equipment essential for their operations. This financial framework is designed to enhance profitability and encourage sustained investment in high-tech industries.
- Priority Investment Areas
Da Nang has identified several priority investment areas within its high-tech framework. These include information and communications technology (ICT), biotechnology, micro-electronic technology, mechatronics, precision engineering, environmental technology, and nanotechnology.
The city's strategic focus on these sectors aligns with its vision to become a socio-economic hub in the region by 2030. By concentrating on these priority areas, Da Nang aims to attract cutting-edge firms and drive innovation across various industries.
- Technology Enterprises
The park has successfully attracted a diverse range of technology enterprises that contribute to its growth and reputation as a high-tech destination. As of now, it hosts both domestic and foreign direct investment (FDI) projects that emphasize research and development alongside manufacturing. The presence of notable companies not only enhances the park's technological capabilities but also fosters collaboration among enterprises.
Read more: Building a Tech Team in Vietnam: Strategies for Success
Benefits of Investing in High-Tech Industrial Parks in Vietnam
Investing in high-tech industrial parks in Vietnam offers a multitude of benefits. Here are some key advantages:
Access to advanced infrastructure
High-tech industrial parks in Vietnam are equipped with cutting-edge infrastructure, including modern transportation networks and utilities. As of 2023, Vietnam has over 38,000 active foreign direct investment (FDI) projects in the high-tech sector, with a total registered capital exceeding $453 billion, showcasing the country's commitment to developing advanced infrastructure for businesses.
Cost-Effective operations
Operating within these parks can lead to significant cost savings. The strategic locations of high-tech industrial parks help reduce logistics expenses and operational costs.
Tax incentives
The Vietnamese government provides various tax incentives for businesses operating in high-tech parks. They enjoy a tax incentive of up to 10% for new investment enterprises with a term of up to 30 years. In particular, this enterprise is also exempted from 100% payable tax in the first 4 years, and 50% of tax in the next 9 years.
Challenges and Considerations
While investing in high-tech industrial parks in Vietnam offers numerous benefits, there are also challenges and considerations that potential investors should be aware of. Here are some key points to consider:
Infrastructure gaps in some regions
Despite significant advancements, there are still infrastructure gaps in certain regions of Vietnam. While major cities like Ho Chi Minh City and Hanoi boast excellent facilities, rural areas may lack adequate transportation and utility networks. Investors should conduct thorough due diligence to identify suitable locations with the necessary infrastructure to support their operations.
Regulatory complexities and how to navigate them
The regulatory landscape in Vietnam can be complex and challenging for foreign investors. Various laws and regulations govern high-tech investments, including those related to land use, labor, and environmental standards. In 2022, the Vietnamese government introduced new policies aimed at simplifying procedures, but navigating these regulations still requires careful planning. Engaging local legal experts or consultants can help investors understand compliance requirements and avoid potential pitfalls.
If you want to explore more about the high-tech industry in Vietnam or IT Outsourcing services, contact EDUTO to unlock practical insights into the Vietnamese technology landscape.
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