HCMC: hi-tech industry popular with investors

Many world leading hi-tech groups such as Intel from the US , Nidec
from Japan and German based multi-national Bosch are increasing the
scale of their investment in Ho Chi Minh City , an indication of how
attractive the hi-tech industry has become to investors.

Intel Vietnam said it would officially inaugurate the first phase
of its largest global micro-chip plant, with an investment capital of 1
billion USD, at the Ho Chi Minh City Hi-tech Zone later this month.

The first batch of Intel chips worth 120 million USD is expected to be exported later this year.

Also in October, Bosch Vietnam will have its software research and
production centre in Ho Chi Minh City up and running, the company’s
second major production facility in the Asia-Pacific region.

According to Bosch Vietnam ’s Managing Director Vo Quang Hue, by
the end of this year, the company will have begun the first phase of a
24 million USD auto-parts factory in Long Thanh district, Dong Nai. It
also plans to inject an additional 30 million VND to finish the factory
by 2015.

Vietnam is now the only Southeast
Asian market where Bosch are involved in all three stages, research,
production and sales.

Despite operating four
projects in HCM City , with a combined investment of nearly 500
million USD, Nidec President Nagomori Shigennobu still says his company
will continue with its investment, research and development activities
in the HCM City Hi-tech Zone, as well as call on its Japanese partners
to invest more in this field.

According to the
General Secretary of the Vietnam Electronics Businesses Association Tran
Quang Hung, the presence of foreign groups in the hi-tech industry
creates opportunities for Vietnamese workers to learn and improve their
skills and gradually expand the number of subsidiaries producing
components for overseas companies in the next 5-10 years.

Many small and medium sized Vietnamese companies investing in the
hi-tech industry could also become partners of foreign groups to
manufacture spare parts and help to improve the country’s
competitiveness in this sector, he added.

Vietnam
has several advantages over other regional countries, such as cheap
labour costs and a convenient location for transporting goods to other
markets in the Asia-Pacific region, said Hue, adding that in order to
develop its hi-tech industry, the country should define itself as a
destination for large manufacturers./.

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First hi-tech park attracts over $1.2 bil

The total investment into Vietnam’s first hi-tech park has climbed to over US$1.2 billion after its management board granted investment certificates to five new businesses early this week, VnExpress reports.

Newly-licensed projects at the Hoa Lac Hi-tech Park in Hanoi include a  $50-million complex of hi-end constructions specific for programmers, invested by the FPT Software Joint-stock company. Works on the complex is expected to be completed in 2016.

The FPT Hoa Lac Hi-tech Park Development Co. Ltd., meanwhile, has invested $35 million in a hi-tech industry area which will provide investors there with technical infrastructure of international standards, according to the news website.

So far, the Hoa Lac Park has attracted 47 projects, Nguyen Van Lang, deputy minister of Science and Technology and also head of the park’s management board, told VnExpress.

From now until Tet, Vietnam’s traditional Lunar New Year festival, another 12 investment certificates will be granted, Lang said, adding that they are also reviewing 38 other potential projects.

Established in October, 1998 with a total area of nearly 16,000 hectares, the Hoa Lac Hi-tech Park was built as a “science city” with all relevant services and functional areas for software, research and development, hi-tech, and education and training, the news source said.

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Vietnam’s hi-tech sector still in infancy: expert

Vietnam’s hi-tech industry is still in infancy, so there will be ample room for investment and development.

So Vietnam is in dire need of incentives and legal framework for venture capital funds for the industry, said Arthur Trueger, chairman of venture capital firm Berkeley International Capital Corp, in the 4th annual Technology Business Conference opened Wednesday in Ho Chi Minh City.

The country, therefore, has yet made a strong presence on the global hi-tech industry map despite its potentials.

But improvements are underway.

The country will set up 15 software parks and mobilize funding for training high-tech human resources, said Tran Duc Lai, Information and Communications Minister, told participants at the two-day event hosted by IDG Ventures Vietnam, DFJ VinaCapital, IBM and Strategic Alliance Vietnamese Ventures International.

Vietnam is considered a promising technology market. Last year the sector generated US$6.26 billion, accounting for 7 percent of Vietnam's GDP.

The number of internet users exceeds 22 million, a penetration rate of over 25 percent.

The digital content industry saw a dramatic growth rate of 50 percent with revenues topping $700 million. The software industry also achieved an impressive 40 percent growth rate and revenues of $880 million.

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High-tech multinationals invest in Vietnam

Many giant corporations like Intel of the US, Nidec of Japan and Robert Bosch of Germany are pouring more money into the high-tech field in Ho Chi Minh City.

Intel Vietnam , for example, has opened its plant, one of the largest in the Asia-Pacific region that makes and tests electronic chips.

The plant, which is located in the Sai Gon Hi-Tech Park (SHTP) in District 9, began operating its first production line for test purposes earlier this year.

Le Thi Thanh My, deputy head of the management board of the SHTP, said since July Intel had exported goods for more than 30 orders.

In addition, Germany Robert Bosch Vietnam next month will put into operation the Centre for Research and Production of Software, one of only two centres of the company in the Asia-Pacific region. The other centre, located in India , employs 70,000 engineers.

Vo Quang Hue, managing director of Robert Bosch Vietnam Company, said the company had also disbursed 24 million euros (US$31.2 million) out of the total committed capital of 55 million euros ($71.5 million) for a project to develop an assembly-line plant to make automatic automobile gear boxes.

The plant, in Dong Nai southern province's Long Thanh district, has a capacity of 2.3 million products per year.

Robert Bosch Vietnam will develop the second phase of the project and disburse the entire capital of 55 million euros by 2015.

Vietnam is the only market in Southeast Asia in which Robert Bosch has invested in all three areas of operation, including sales, production and research.

According to Lu Thanh Phong, deputy director of HCMC's Department of Planning and Investment, of the 3,000 foreign direct investment (FDI) projects with a total capital of $37 billion in the city, Japanese businesses account for 397 projects. They operate in mechanics, spare parts production, food processing and others.

Japan has been cautious in expanding its investment in the hi-tech field in HCM City due to limited capital resources.

However, many Japanese corporations that produce semi-conducting spare parts had increased their investment in HCM City recently, Phong said.

According to Nagamori Shigennobu, chairman of the Japan-based Nidec Corporation, Nidec will continue to invest in research and development at the SHTP.

Nidec has developed three projects and recently received a licence for another project. Total capital for the projects at the park is $500 million.

Nagamori Shigennobu has also committed to encouraging small and medium-sized Japanese businesses to invest in the park. Most of the businesses make spare parts for Nidec products.

With more high-tech projects in the pipeline, Vietnam has more opportunities to promote investment and enhance its competitiveness capacity in the field.

Hue said Vietnam has advantages over other countries in the region due to its low labour costs and good location for transporting products to other countries in Southeast Asia and other parts of the world.

Vietnam should create the most favourable conditions for foreign corporations so that they can produce and export hi-tech products here, Hue added.

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High-tech multinationals invest in VN

Many giant corporations like Intel of the US , Nidec of Japan and
Robert Bosch of Germany are pouring more money into the high-tech
field in HCM City.

Intel Vietnam , for example, has
opened its plant, one of the largest in the Asia-Pacific region that
makes and tests electronic chips.

The plant, which is
located in the Sai Gon Hi-Tech Park (SHTP) in District 9, began
operating its first production line for test purposes earlier this year.

Le Thi Thanh My, deputy head of the management board of
the SHTP, said since July Intel had exported goods for more than 30
orders.

In addition, Germany Robert Bosch Vietnam next
month will put into operation the Centre for Research and Production of
Software, one of only two centres of the company in the Asia-Pacific
region. The other centre, located in India , employs 70,000
engineers.

Vo Quang Hue, managing director of Robert Bosch
Vietnam Company, said the company had also disbursed 24 million EUR
(31.2 million USD) out of the total committed capital of 55 million EUR
(71.5 million USD) for a project to develop an assembly-line plant to
make automatic automobile gear boxes.

The plant, in Dong Nai southern province's Long Thanh district, has a capacity of 2.3 million products per year.

Robert Bosch Vietnam will develop the second phase of the project
and disburse the entire capital of 55 million EUR by 2015.

Vietnam is the only market in Southeast Asia in which Robert Bosch
has invested in all three areas of operation, including sales,
production and research.

According to Lu Thanh Phong,
deputy director of HCM City 's Department of Planning and
Investment, of the 3,000 foreign direct investment (FDI) projects with a
total capital of 37 billion USD in the city, Japanese businesses
account for 397 projects. They operate in mechanics, spare parts
production, food processing and others.

Japan has been cautious in expanding its investment in the hi-tech field in HCM City due to limited capital resources.

However, many Japanese corporations that produce semi-conducting spare
parts had increased their investment in HCM City recently, Phong
said.

According to Nagamori Shigennobu, chairman of the
Japan-based Nidec Corporation, Nidec will continue to invest in research
and development at the SHTP.

Nidec has developed three
projects and recently received a licence for another project. Total
capital for the projects at the park is 500 million USD.

Nagamori Shigennobu has also committed to encouraging small and
medium-sized Japanese businesses to invest in the park. Most of the
businesses make spare parts for Nidec products.

With more
high-tech projects in the pipeline, Vietnam has more opportunities
to promote investment and enhance its competitiveness capacity in the
field.

Hue said Vietnam has advantages over other
countries in the region due to its low labour costs and good location
for transporting products to other countries in Southeast Asia and
other parts of the world.

Vietnam should create the most
favourable conditions for foreign corporations so that they can produce
and export hi-tech products here, Hue added./.

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High-tech multinationals invest in VN

Toyota high-tech zone in Nguyen Van Linh Boulevard in District 7 in HCM City. Huge conglomerates now are investing capital in high-tech sectors in the city.—VNA/VNS Photo Kim Phuong

HCM CITY — Many giant corporations like Intel of the US, Nidec of Japan and Robert Bosch of Germany are pouring more money into the high-tech field in HCM City.

Intel Viet Nam, for example, has opened its plant, one of the largest in the Asia-Pacific region that makes and tests electronic chips.

The plant, which is located in the Sai Gon Hi-Tech Park (SHTP) in District 9, began operating its first production line for test purposes earlier this year.

Le Thi Thanh My, deputy head of the management board of the SHTP, said since July Intel had exported goods for more than 30 orders.

In addition, Germany Robert Bosch Viet Nam next month will put into operation the Centre for Research and Production of Software, one of only two centres of the company in the Asia-Pacific region. The other centre, located in India, employs 70,000 engineers.

Vo Quang Hue, managing director of Robert Bosch Viet Nam Company, said the company had also disbursed EUR24 million (US$31.2 million) out of the total committed capital of EUR55 million ($71.5 million) for a project to develop an assembly-line plant to make automatic automobile gear boxes.

The plant, in southern Dong Nai Province's Long Thanh District, has a capacity of 2.3 million products per year.

Robert Bosch Viet Nam will develop the second phase of the project and disburse the entire capital of EUR55 million by 2015.

Viet Nam is the only market in Southeast Asia in which Robert Bosch has invested in all three areas of operation, including sales, production and research.

According to Lu Thanh Phong, deputy director of HCM City's Department of Planning and Investment, of the 3,000 foreign direct investment (FDI) projects with a total capital of $37 billion in the city, Japanese businesses account for 397 projects. They operate in mechanics, spare parts production, food processing and others.

Japan has been cautious in expanding its investment in the hi-tech field in HCM City due to limited capital resources.

However, many Japanese corporations that produce semi-conducting spare parts had increased their investment in HCM City recently, Phong said.

According to Nagamori Shigennobu, chairman of the Japan-based Nidec Corporation, Nidec will continue to invest in research and development at the SHTP.

Nidec has developed three projects and recently received a license for another project. Total capital for the projects at the park is $500 million.

Nagamori Shigennobu has also committed to encouraging small-and-medium-sized Japanese businesses to invest in the park. Most of the businesses make spare parts for Nidec products.

With more high-tech projects in the pipeline, Viet Nam has more opportunities to promote investment and enhance its competitiveness capacity in the field.

Hue said Viet Nam has advantages over other countries in the region due to its low labour costs and good location for transporting products to other countries in Southeast Asia and other parts of the world.

Viet Nam should create the most favourable conditions for foreign corporations so that they can produce and export hi-tech products here, Hue added. — VNS

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