SHTP aiming to become smarter, more innovative

Nearly using up its area to accommodate businesses, Saigon Hi-tech Park (SHTP) has greatly contributed to HCMC’s export turnover thanks to its incentive policies. It is now moving towards improving Vietnam’s technological capacity.
SHTP’s Management Board is studying the planning of all functional zones in the park (Photo: SGGP)

SHTP’s Management Board is studying the planning of all functional zones in the park (Photo: SGGP)

SHTP reported that in November 2023, 160 projects are being carried out here, including 70 hi-tech manufacturing, 18 hi-tech service, 21 research, 9 training-incubation, and 23 hi-tech supporting projects. Many of them are Foreign Direct Investment (FDI) ones from leading corporations such as Intel, Jabil (USA), Nidec, Nipro, NTT (Japan), Samsung (the Republic of Korea), Datalogic (Italy) with the total amount of up to billions of USD.

For instance, Intel Corp. has poured US$1.5 billion into its chip assembly and testing factory named ‘Intel Products Vietnam’ (IPV), offering 6,500 jobs in hi-tech fields and contributing $76.3 billion of export turnover since 2010. It accounted for half of SHTP’s export turnover in the first quarter this year, 15 percent of the national electronic components export turnover, and 18 percent of HCMC’s overall export turnover. IPV is going to increase its manufacturing activities in the upcoming time.

So far, SHTP has leased 522ha out of its surface area of 598.3ha to 132 projects. Many experts commented that SHTP has nearly reached its ‘exploitation limit’ with such impressive export turnovers of $23 billion in 2022 and $12.1 billion in the first 9 months this year, many times as high as the one in 2010.

The number of laborers working in SHTP in 2022 was over 51,900, including 570 foreigners. In June 2023, this figure dropped to about 48,300 employees due to reductions in manufacturing orders.

Labor intensiveness is a rising issue here as the park is focusing on developing high technologies, yet there is still a large quantity of unskilled laborers.

Director of SHTP’s Management Board Nguyen Anh Thi said that his organization is trying to boost its inner capacity via effective exploitation of existing ecosystems here to take better advantage of Industry 4.0. SHTP is going to upgrade the capacity of its human resources and its scientific-technological potential. It also plans to develop the supporting industry for strategic FDI projects, and to attract investment in key or prioritized industries of Vietnam.

Just like the suggestion of many experts on hi-tech growth strategies, SHTP is going to expand its scientific-technological park in order to boost hi-tech manufacturing and gradually pour more money into research activities and innovation, startup incubation.

This is clearly stated in Decision No.430/QD-TTg, issued on March 27, 2020 by the Prime Minister when approving local adjustments for HCMC’s master construction planning until 2025. In particular, SHTP has an additional section of a scientific-technological park with a scale of 166.2ha.

This area will become a place for research, experimentation, technology transfer and application, linking and function adding to the existing SHTP; a research basis and the core for the highly interactive creative urban area in the East of HCMC. It will contribute to the general socio-economic growth of the city.

“SHTP will promote an effective implementation of investment projects in the scientific space (with the scale of 93ha); foster the connection among all businesses and units sited in the park and universities, research institutes in the region, especially with Vietnam National University – HCM with the ultimate aim of increasing the innovation potential and the proportion of hi-tech merchandise production of domestic companies”, stressed Director Thi.

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