Quang Trung Software Park – Ho Chi Minh City

QUANG TRUNG SOFTWARE INDUSTRIAL PARK

Province/City

Ho Chi Minh

Occupancy Rate

99%

Area

913 hectares

Lease Price

0 USD/m2

District 9 High-Tech Park (now part of Thu Duc City, Ho Chi Minh City) is becoming a leading attractive destination for investors in the high-tech sector. It is one of three national-level high-tech parks established by the Government, alongside Hoa Lac (Hanoi) and Da Nang.

Located at the northeastern gateway of Ho Chi Minh City, District 9 High-Tech Park (Saigon Hi-Tech Park – SHTP) boasts a strategic location and a modern infrastructure, creating a favorable foundation for the development of large-scale technology projects. Currently, this high-tech park has almost reached its maximum occupancy rate, with the participation of many large domestic and international corporations, demonstrating its strong appeal and exceptional development potential.

In the context of increasingly limited industrial land in Ho Chi Minh City, District 9 High-Tech Park is considered an ideal choice and a valuable investment opportunity for businesses seeking an advanced and modern production environment.

Details

Industrial Park Name	Ho Chi Minh City High-Tech Park
Location	Tan Phu Ward, Thu Duc City, Ho Chi Minh City
Total Area	913 hectares
Land Rental Price	80 USD/m2
Construction Density	60%
Occupancy Rate	99%

Infrastructure Information

Electrical System	110KVA
Water System	24,300 m3/day
Sewage System	20,000 m3/day
Traffic System	The roads within the industrial park consist of two main arteries, D1 and D2, with a width of 52 meters, connecting internal and external traffic. Internal roads have a width ranging from 19 meters to 32 meters, with a robust structure, and underground power, lighting, water supply, drainage, and wastewater collection systems.

1. Project overview and legal information

Ho Chi Minh City High-Tech Park (SHTP – Saigon Hi-tech Park) is one of three national-level high-tech parks established by the Prime Minister, alongside Hoa Lac (Hanoi) and Da Nang. These are considered pioneering projects, laying the foundation for the development of high-tech industries in Vietnam.

Playing a key role in the strategy of building a creative urban area in the East of Ho Chi Minh City, SHTP brings together many leading advanced technology fields, contributing to the production and supply of products meeting international standards, while strongly promoting domestic research and development activities.

Below is an overview of Ho Chi Minh City High-Tech Park:

Name: Ho Chi Minh City High-Tech Park
Location: Tan Phu Ward, Ho Chi Minh City Thu Duc City, Ho Chi Minh City
Operating period: 50 years (2002 – 2052)
Scale: 913 hectares (including Phase 1: 300 hectares, Phase 2: 613 hectares)
Occupancy rate: Approximately 99%
Investment sectors:
- Microelectronics, information technology, telecommunications
- Precision mechanics, automation
- Biotechnology applied in medicine, pharmaceuticals and environment
- New energy, new materials and nanotechnology

Regarding investment attraction, as of April 2019, SHTP had licensed 156 projects with a total investment of over US$7.1 billion. Of these, 73 projects have entered stable operation, generating cumulative export value of over US$45 billion, contributing approximately 94% of Ho Chi Minh City’s total high-tech product export turnover.

A highlight of SHTP’s planning is the Science Space – a hub for research, training, and technology incubation activities. This area contributes to improving the quality of human resources and scientific and technological research capabilities for the city in particular and the country in general.

SHTP is also a destination for many large global technology corporations such as Intel (USA), Samsung (Korea), Nidec and Nipro (Japan)… with approximately 60% of projects in the high-tech manufacturing and R&D sectors.

The outstanding advantage of Ho Chi Minh City High-Tech Park comes from its strategic location and complete ecosystem. Located within the Thu Duc Creative Urban Area, this area is conveniently connected to the Thu Thiem Urban Area, the Rach Chiec Sports Complex, the National Historical and Cultural Park… creating a modern urban-industrial-research complex.

Furthermore, the synchronized transportation infrastructure (highways, ports, metro, etc.) facilitates the transportation of goods and market connectivity. Its proximity to major universities such as the Vietnam National University Ho Chi Minh City, Fulbright University, and FPT University also provides a plentiful supply of high-quality human resources.

With a transparent investment environment, effective support policies (a “one-stop shop” mechanism), and modern infrastructure, SHTP is considered one of the top attractive destinations for domestic and foreign investors in the high-tech sector.

2. Investment costs and incentives

– Infrastructure costs: approximately US$80/m² for the entire lease period

– Infrastructure maintenance and management fees: approximately US$0.5/m²/year

– Wastewater treatment fees: approximately US$0.5/m³

– Electricity prices: applied according to the tariff schedule issued by the Ministry of Industry and Trade

– Clean water prices: implemented according to the regulations of the People’s Committee of Ba Ria – Vung Tau province

Note: The above prices do not include VAT and may be adjusted from time to time.

Outstanding tax incentive policies

According to current regulations aimed at attracting foreign investment, businesses enjoy many long-term corporate income tax (CIT) incentives. Specifically, for the first four years after generating taxable income, businesses are completely exempt from tax. For the following nine years, the preferential tax rate is 5%, then increases to 10% for the next two years. After the 15-year incentive period ends, the normal tax rate of 22% will apply if the business continues to operate.

For large-scale projects with a positive impact on economic, social, or scientific and technological development, the tax incentive period can be extended up to 30 years, depending on the project’s importance.

In addition, businesses are also exempt from import duties and value-added tax on imported machinery and equipment used in the formation of fixed assets, as well as in research and development activities. In addition, high-tech products are also subject to tax exemption policies as stipulated.

Land and Factory Rental Incentives

Besides tax incentives, investors are also exempt from land rent during the construction phase (maximum of 3 years). After this period, businesses continue to be exempt from land rent for 15 to 19 years according to the applicable policy.

In cases where a new factory is not built, businesses can choose to rent ready-built factories with high quality, complete infrastructure, and diverse sizes. Rental prices range from 3.2 to 5.5 USD/m²/month. This solution significantly reduces initial investment costs, is particularly suitable for small and medium-sized enterprises, and allows for rapid production deployment.

3. Geographical location

The Ho Chi Minh City High-Tech Park (HCMC High-Tech Park) is located along Hanoi Highway, extending to Ring Road 2, in Tan Phu Ward, District 9 (now Thu Duc City), serving as the northeastern gateway to Ho Chi Minh City. Its strategic location makes it a crucial connection point to numerous industrial parks, clusters, urban areas, and amenities within HCMC as well as neighboring provinces such as Binh Duong and Dong Nai.

Within a radius of approximately 5 km, the high-tech park offers easy access to key locations such as Suoi Tien Cultural and Tourist Area, the National University of Ho Chi Minh City, the Ben Thanh – Suoi Tien Metro line (and its expansions), the new Eastern Bus Station, and the Hung Kings Memorial Area. Furthermore, it boasts convenient access to other important areas:

Approximately 15 km from the city center;
Approximately 4 km from Cat Lai Port;
Approximately 18 km from Tan Son Nhat International Airport.

4. Infrastructure Information

The industrial park’s infrastructure is comprehensively and modernly invested, effectively meeting the operational needs of businesses:

Internal transportation:
The industrial park is planned with two main roads, D1 and D2, with a width of 52m, serving as flexible connections between the internal area and external transportation routes. Other internal roads have widths ranging from 19m to 32m and are solidly constructed. The entire electrical, lighting, water supply and drainage, and wastewater collection systems are all installed underground along the roads, ensuring aesthetics and safety.
Electricity supply system:
The power supply has a capacity of 110 KVA, connected from three independent substations, ensuring continuous 24/7 operation for businesses within the park.
Wastewater Treatment:
The industrial park is equipped with a centralized wastewater treatment plant with a capacity of 20,000 m³/day, meeting the wastewater treatment needs of the entire area.
Water Supply:
Clean water is supplied stably from the Thu Duc Water Treatment Plant, with a capacity of approximately 24,300 m³/day.
Internal Amenities:
In addition to technical infrastructure, the industrial park is also fully developed with amenities such as high-end apartments, housing for workers, an international school, entertainment areas, and a supermarket system, contributing to creating a convenient and modern working and living environment.