Big foreign investors are seeking the opportunities to invest in high technology projects in Vietnam to take full advantage of the incentives offered by the Vietnamese government.
Chu Tien Dung, President of the Quang Trung Software Park Development Company (QTSC) has said that a lot of foreign investors are planning to develop projects on information technology and supporting industries in the southern key economic zone.
Some information technology and software development firms, mostly from Japan and South Korean, have expressed their intention to expand their business, or seek Vietnamese partners – software firms.
The way the investors want to follow is to buy stakes of the Vietnamese firms to acquire the firms.
“Foreign investors want to buy Vietnamese companies because they highly appreciate the domestic market and the labor force,” Dung said. “They would change the brands of the companies they purchase, and then develop high technologies with the companies, instead of making investment from the beginning.”
Dung has affirmed that there is a strong FDI flow into the information technology and high technology sectors.
A QTSC’s report shows that the software park has attracted 102 information technology firms, including 44 foreign invested ones with the total registered capital of 78.83 million dollars.
Ngo Duc Chi, General Director of Global CyberSoft (GCS) Vietnam, has also said that the US IBM Group, French Cap Gemini and Accenture are also seeking the opportunities to develop research and development (R&D) centers in Vietnam.
The moves are hoped to help much to the efforts by the HCM City High Tech Park (SHTP) to attract 10-12 high technology projects with the total investment capital of 160 million dollars.
Regarding the supporting industries, on February 20, 2012, at the meeting with the leaders of the HCM City, Shigeo Maruo, a senior executive of Nikkiso Group said that the company is considering expanding the production of healthcare equipments and employ more workers in the city.
The senior executive declined to reveal the details about the investment capital and the scale of the project, saying that Nikkiso would make decision after learning about the labor force and the city’s support to the labor training for the project.
The current factory of Nikkiso in Tan Thuan export processing zone, which has the investment capital of 20 million dollars, is employing 1400 workers, specializing in making healthcare equipments for export to Japan and some European markets.
Foreign investors have been flocking to Vietnam with high technology projects in order to take full advantage of the investment incentives offered by the government for the high technology sector, information technology and supporting industries.
Kiem Giang Composite Company KGC is following necessary procedures to set up a joint venture with Trisun International Development Pty. Limited (TID, Australia) to run a waste treatment factory using plasma technology. Once operational, the factory with the investment capital of 400 million dollars would be the first factory that uses plasma technology in HCM City, according to Tu Ngoc An, President of KGC.
KGC plans to have a factory with the waste treatment capacity of 2000 tons or waste per day in the first phase of the project operation, which would allow to generate 1630 KwH of electricity per day. It is estimated that 45 percent of the electricity would be consumed to run the factory, which means that the other 55 percent of the electricity output would be provided to the national grid.
Besides, the factory would also make some by-products such as construction materials.