Deputy Minister of the Ministry of Science and Technology Pham Dai Duong: “Silicon Valley will appear in Vietnam”

Deputy Minister of the Ministry of Science and Technology Pham Dai Duong said that, high-tech zones could quickly become “Silicon Valley” with the current pace of development.

Deputy Minister of the Ministry of Science and Technology Pham Dai Duong, Head of Hoa Lac Hi-Tech Park (Hanoi), responded to VnExpress about success in attracting investment in Hoa Lac hi-tech park and his expectation of a model of development of the national hi-tech park.

Flourishing but not as expected

• The CNC model was built 20 years ago by the government with the expectation of creating “Silicon Valley”. So far, how are the results obtained from this model across the country, Sir?

• It is true that the CNC model started with the establishment of Hoa Lac Hi-Tech Park (1998) and then Ho Chi Minh City (2002) and Da Nang (2010). In addition to these national high-tech parks, some localities also set up agricultural, biotech, and information technology parks. Although it was started 20 years ago, the actual implementation is just 10 years because we have spent a lot of time to learn experience,build model and legal basis. It must be confirmed that the current model is correct. The government has taken the lead and the parks also persistently pursued the set model. Up to now, both national and local levels have made significant contributions to Vietnam’s access to new technologies for transferring and applying in practice, attracting investors over the world.

The Deputy Minister of the Ministry of Science and Technology Pham Dai Duong

• Does this result match the expectations and investment costs of the technology parks?

• Of course, the government’s expectations are high when it comes to setting up hi-tech parks. Actual at this time, expectations are not achieved because many objective and subjective reasons. However, the initial results have also contributed to the overall development of the country’s economy.

• In recent years, the image of Hoa Lac Hi-tech Park is the project of abandoning land, land clearance is slow progress, small drop of money … Ministry has done to improve the impression which is not very positive?
• Apart from objective reasons, the Hoa Lac area faces with slow land clearance, limited investment capital, unfinished policies, overlapping investment incentives and investment attraction. For many years, the Ministry of Science and Technology has directed the Hoa Lac Area Management Board to focus all resources on solving these problems. Until now, these issues have basically been resolved. Plans have been liberated, legal documents have been finalized. Laws on land, construction, investment, environment, taxation and implementation guidelines have specific contents. In particular, the introduction of Decree 74/2017 by the Government with many incentives has solved difficulties for the Hoa Lac. The infrastructure is being invested with Japanese ODA and will be completed in the first quarter of 2019, helping to create a modern and synchronous infrastructure system. At the same time, the Management Board also reviewed the projects to ensure timely progress, avoid waste of land. Projects that have been delayed or unable to be implemented have been withdrawn and the scale of land use has been reduced. The Management Board also called for investment in infrastructure such as housing, schools, restaurants, hotels … The People’s Committee of Hanoi has arranged bus routes between the city center and Hoa Lac.
• How does this change help Hoa Lac, sir?
• Investors are more confident in the model of Hoa Lac area. Japan Nidec Corporation has successfully registered two projects with a total capital of $ 400 millions out of a total of five $ 1 billion – committed projects. A number of Japanese and Korean companies have applied for investment in Hoa Lac area. On June 17^th 2018, at the Hanoi Conference 2018 – Hanoi Investment and Development Co-operation, the Hoa Lac Zone Management Board will grant investment certificates to these enterprises. In the first five months of this year, four licensed projects with a total capital of nearly 11,000 billion VND on an area of 15.4 ha, an average of $ 31.5 million investment per hectare. Compared to previous years (US $ 19 million in 2017 and US $ 13 million in 2016), the average investment per hectare of Hoa Lac land increased rapidly. To date, the total number of valid projects is 83 with a total registered capital of $ 3.4 billion on an area of nearly 370 hectares.

Hoa Lac Hi-Tech Park

• What is the current occupancy rate for the Hoa Lac area?

• One third of the Hoa Lac area has been filled. This figure is less than 20 years of formation and development. However, we are not too eager to attract investment with the goal of filling but focusing on attracting technology, finance, fast disbursement and economic efficiency. The objective of establishing Hoa Lac is not only to attract investment, but also to develop scientific and technological potential in the North in particular and in the country in general. Actually this goal has achieved positive results. Many universities and research institutes have been supported by the Governments of Japan, Korea and France, such as the Vietnam-Korea Institute of Science and Technology (V-KIST), the Research Center of Nissan Techno …Some large enterprises in Vietnam have invested in leading international technology such as FPT Software, Viettel, VNPT Technology.

Prime Minister Nguyen Xuan Phuc, Deputy Prime Minister Vu Duc Dam hears report on investment attraction in Hoa Lac.

Difference to attract

– What is the difference between Hoa Lac and other industrial parks and other hubs that investors accept to invest?

First of all, previous problems have been solved. Thang Long Expressway was put into operation so that the distance from Hanoi center to Hoa Lac was only 20 minutes. A smart plan to transform Hoa Lac is not just a common industrial park but a city of science and technology, a satellite of Hanoi. The planning has built up a combination of functional areas to create a closed loop from human resource training to product deployment and commercialization. This builds a community for scientists, researchers and businesses. I think that good planning, modern infrastructure is a plus in the eyes of investors. However, that is the “hard” infrastructure and not enough for them. Therefore, we are building more “soft” infrastructure such as houses, schools, hospitals, restaurants, high quality human resources supply chain … If done well, Hoa Lac will have more plus .In addition, the specific mechanism promulgated in 2017 resolved all the problems of the policy, the authority of the Management Board to the preferences of investors. This mechanism has become effective, minimizing administrative procedures and costs for investors.

– With this change, in your vision, when will Vietnam have “Silicon Valley” on a world scale?

With the current trend, in the context of the development of science and technology, industrial revolution 4.0, surely the demand for technology development in the country will be very large. However, to realize a “Silicon Valley” on a world scale in Vietnam, I think there is a lot of work to be done and the fierce efforts of the Government, Ministries and localities. I believe that, with the current determination of the Government, a “Silicon Valley” will appear in Vietnam in the near future.