New innovation centre to provide grounds for Vietnam 4.0

The location of the NIC at Hoa Lac Hi-Tech Park

The National Innovation Centre (NIC), a part of the Ministry of Planning and Investment (MPI)-initiated Vietnam Innovation Network launched in August this year, will create a world-class technology startup ecosystem in Vietnam and contribute to the implementation of the national strategy on Industry 4.0.

According to the project draft drawn up by the MPI’s Central Institute for Economic Management (CIEM), the NIC will be developed on an area of 23 hectares in Hoa Lac Hi-Tech Park with the total investment of VND1.9 trillion ($82.6 million), including VND1.7 trillion ($73.9 million) for the physical construction and VND200 billion ($8.7 million) for operating capital. The project, set to break ground in 2019, will be developed within three years, and it could be put into operation in 2020.

The NIC is expected to lure 40 big technology companies, 150 startups and small- and medium-sized enterprises, and 15 venture investment funds, thereby creating more than 5,000 jobs.

The NIC will focus on a number of priority sectors in the beginning, like developing hardware and software for smart factories and smart cities, digital content, and network security.

The NIC’s management line-up, including the 5-7 members of the board of directors, and 8-12 experts of the board of consultants, will be approved by the prime minister. According to CIEM director Nguyen Dinh Cung, the salary of employees in the NIC will be competitive to attract significant Vietnamese talent from overseas and from across the country.

During the operation, the NIC will enjoy the highest corporate tax incentives, such as exemption from land use fees for 20 years, preferential credit, allowing domestic and foreign enterprises operating in the same field to sublease grounds for the maximum stated by the law, allowing to guarantee for enterprises working on their premises to apply for work permits and long-term residence visa.

Earlier, on August 18-24, the MPI invited 100 overseas Vietnamese technology experts and scientists to discuss innovations in order to boost Industry 4.0 in Vietnam. On August 19, Vietnam Innovation Network was launched in the presence of Prime Minister Nguyen Xuan Phuc and leaders of ministries and agencies.