Nearshore Americas

Vietnam to Build $1bn Software Park in Hanoi

Vietnam has plans to build a software park over 175 acres of land in capital Hanoi, in order to fuel future economic growth through digital technology.
At a cost of US$1 billion, the software park is expected to create as many as 40,000 jobs, according to Hanoi’s municipal officials.
Hanoi authorities have allowed a local firm named Becamex ITC to access the department’s relevant documents so that it can propose a plan on developing the software park.
Becamex ITC is a subsidiary of state-run investment and development enterprise Becamex IDC Corp., which has a history of building several industrial parks in the southern province of Binh Duong, according to Vietnamese newspaper VN Express.
Companies that set up shop at the park will have no need to pay tax for four years, and for the next nine years, they are to pay only 50% of the tax they owe to the government.
Ever since it opened its market to foreign investors, Vietnam has been trying to grow into an outsourcing and technology services hub. Its technology zone in Cau Giay District hosts more than 300 IT firms.
According to figures from Information Technology Department, Vietnam’s IT revenue grew more than six times in a space of five years, from US$7.6 billion in 2010 to US$49.5 billion in 2015.
Earlier this year, the government approved construction of a US$470 million hi-tech zone in Long Bien District. The project is scheduled for completion in 2019.
For technology start-ups, Vietnam offers many types of financial incentives and, in addition, runs several training programs for youths to make sure that the industry does not run short of talent pool.

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Narayan Ammachchi

News Editor for Nearshore Americas, Narayan Ammachchi is a career journalist with a decade of experience in politics and international business. He works out of his base in the Indian Silicon City of Bangalore.

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