HCM City seeks to build domestic supply chain through support industry
Ho Chi Minh City has focused on drawing investment in the support industry in a bid to assist the development of the domestic supply chain and lay a foundation for sustainable high technology development.
Over the past several years, many projects have been licensed in the Saigon Hi-tech Park (SHTP), bringing with them satellite supply projects.
According to Chairman of the municipal People’s Committee Nguyen Thanh Phong, the Samsung project is expected to boost support industry development, contributing to shifting the city’s economic structure and local socio-economic development.
It also helps boost the development of skilled human resources and the domestic supply chain, enhancing the competitiveness of domestic enterprises and the rate of locally made content in hi-tech export products.
In October 2015, a decision was promulgated on offering incentives, including interest rate subsidy, for investors in the support industry. During the year, nearly 60 investors, most from Japan, the Republic of Korea, the US and Europe, came to study investment conditions in the park.
According to Le Hoai Quoc, head of the SHTP Management Board, the park has built production facilities on more than 13 hectares to serve small enterprises operating in the support industry – especially those which focus on advanced technology.
At the same time, the park requires investors to commit to promoting research and development (R&D) and the localisation of production. Within three to five years of operation, the local content of product value should reach at least 35%.
Quoc said the requirements are geared towards developing the domestic supply chain, noting that domestic enterprises should also make greater efforts, particularly investing in R&D.
In 2015, the SHTP drew up 28 projects, worth a total of US$1.5 billion – US$3.7 times the yearly target, many of which were part of a supply chain for the Samsung Complex Project.
According to Chairman of the municipal People’s Committee Nguyen Thanh Phong, the Samsung project is expected to boost support industry development, contributing to shifting the city’s economic structure and local socio-economic development.
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In October 2015, a decision was promulgated on offering incentives, including interest rate subsidy, for investors in the support industry. During the year, nearly 60 investors, most from Japan, the Republic of Korea, the US and Europe, came to study investment conditions in the park.
According to Le Hoai Quoc, head of the SHTP Management Board, the park has built production facilities on more than 13 hectares to serve small enterprises operating in the support industry – especially those which focus on advanced technology.
At the same time, the park requires investors to commit to promoting research and development (R&D) and the localisation of production. Within three to five years of operation, the local content of product value should reach at least 35%.
Quoc said the requirements are geared towards developing the domestic supply chain, noting that domestic enterprises should also make greater efforts, particularly investing in R&D.
The Saigon Hi-tech Park (SHTP) has attracted 68 investment projects with a total registered capital of US$4.1 billion since its establishment in 2002.
