New special incentives increase Hoa Lac allure

The Hoa Lac High-Tech Park investment promotion conference successfully reeled in two new Korean investors thanks to the new incentives

At the investment promotion conference on July 7 in Hanoi for Korean businesses in Hoa Lac High-tech Park (HHTP), two new projects from DT&C and CVI Cosmetic and Pharmaceutical Co., JSC were licensed, raising the park's total number of projects to 80, with the total pledged capital of VND61.3 trillion ($2.78 billion).

“The park is expected to attract more projects in the coming time thanks to Decree 74 which was approved by Prime Minister Nguyen Xuan Phuc in late June 2017, offering special investment incentives for HHTP,” Nguyen Trung Quynh, vice chairman of the HHTP Management Board, told VIR.

"The decree, which will take effect on August 5, 2017, will help us attract more private investment, thus reducing reliance on state funds," he added.

The new incentives are becoming a major selling point for Hoa Lac High-tech Park

Japan's Nidec is planning to invest around $500 million in energy-saving motor and actuator research and manufacturing at HHTP. If everything goes smoothly, the work will start in early 2018.

Another new investor is South Korean Hanwha Techwin, which will get an investment certificate in the coming days to invest $200 million in airplane spare parts and gas turbine components manufacturing to supply big clients, including Rolls Royce, GE, and Pratt & Whitney.

"This is our first project in HHTP. We selected the park as our operations focus on high-tech applications to increase our product quality. In addition, projects in HHTP are enjoying more tax and investment incentives," Phan Van Hieu, chairman of CVI Cosmetics & Pharmaceutical Co., JSC.

Under Decree 74, domestic and foreign investors who implement new projects worth at least VND4 trillion ($176 million) at HHTP will enjoy a corporate income tax of 10 per cent for 30 years.

Organisations and individuals will receive incentives on tax, land rental and land use fees if they develop housing projects for labourers working at the park, the decree stated.

Besides this, the Hanoi People’s Committee will prioritise the allocation of sufficient land funds for housing projects for the park’s workers, it added.

According to the park’s management board, HHTP is estimated to attract around $700 million in the first half of 2017.

HHTP is located in the two districts of Thach That and Quoc Oai in suburban Hanoi, spanning a total area of 1,586 hectares. It is set to become a city of science, attracting investors in the fields of research and development, training and incubation, and manufacturing high-tech products in the fields of biotechnology, ICT, new materials, and automation.

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