What is a Hi-Tech Park? Incentives & Conditions for Establishing a Hi-tech park
The remarkable development of industry and the continuous advancement of information technology have ushered the world into a new era – the High-Tech Era. In this context, Hi-tech parks have become shining beacons, driving innovation, research, and the development of advanced technologies, creating favorable conditions for the application of scientific knowledge in production, business, and daily life. So, what is a Hi-tech park? What are the incentives and conditions for establishing a Hi-tech park? Let Siglaw guide you in the following article.
What is a Hi-tech park?
“Hi-tech park is a place where hi-tech research, application and development; hi-tech incubation or hi-tech enterprise incubation; hi-tech human resource training; hi-tech product manufacture and trading; and hi-tech service provision activities are concentrated and connected” as stipulated in Article 31 High Technologies 2008.
What is a Hi-Tech Park? Incentives & Conditions for Establishing a Hi-tech park
Regulations on the development of Hi-tech technical infrastructure
The development of Hi-tech technical infrastructure encouraged by the State includes:
- Hi-tech parks;
- Hi-tech application agricultural parks;
- Hi-tech nurseries;
- Hi-tech enterprise nurseries;
- Hi-tech research institutions;
- Information infrastructure, to meet hi-tech development requirements.
Tasks of a hi-tech park:
- To connect hi-tech research and application, hi-tech human resource training, and hi-tech production activities;
- To organize fairs, exhibitions, and demonstrations of hi-tech products based on research results and the application of high technology;
- To train hi-tech human resources;
- To conduct hi-tech research, application and development; hi-tech incubation or hi-tech enterprise incubation; hi-tech human resource training; hi-tech production; or hi-tech service provision activities;
- To attract domestic and foreign resources to promote high-tech activities.
Conditions for establishment of a hi-tech park:
The conditions for establishing a hi-tech park are stipulated as follows
- The park must have favorable technical and service infrastructure meeting the requirements of hi-tech research, application and development; hi-tech incubation or hi-tech enterprise incubation; hi-tech trial production; or hi-tech service provision;
- The park must have professional human resources and managerial staff.
- The park must have an appropriate area and a location favorable for transport and linkage with high-level research and training institutions;
- Such establishment must be compliant with the State’s policies on hi-tech and hi-tech industrial development and tasks defined in section 2.
State policies towards hi-tech activities:
The policies of the Vietnamese government regarding hi-tech activities are stipulated in Article 4 of the 2008 Law on High Technologies:
- To encourage enterprises to raise their hi-tech application capacity and invest in hi-tech development; to facilitate the formation of a network of medium- and small-sized enterprises providing support products and services for the hi-tech industry;
- To speed up the application, research, mastering and creation of high technologies and hi-tech products: to form and develop a number of hi-tech industries; to raise the competitiveness of products, and participate in stages creating high added value in the global supply system;
- To concentrate investment in developing hi-tech human resources up to regional and international level: to apply special incentive mechanisms and policies for training, attracting and effectively employing hi-tech human resources at home and abroad and talented youth in hi-tech research, teaching and incubation, hi-tech enterprise incubation and other hi-tech activities;
- To mobilize investment resources and apply in a coordinated manner mechanisms and measures to offer the highest land, tax and other incentives for hi-tech activities with a view to promoting the leading role of high technologies in scientific and technological development for socio-economic development, defense and security maintenance, environmental protection, and improvement of the quality of people’s life;
- To allocate state budget funds and apply a special financial mechanism for hi-tech tasks, programs and projects and the import of high technologies which are important to socio-economic development and defense and security maintenance.
Policies that hi-tech enterprises receive.
According to the provisions of the 2013 Law on Science and Technology, high-tech enterprises are entitled to the following preferential tax policies according to the provisions of tax law:
- Grants from organizations, individuals for scientific research; grants received for scientific research;
- Hi-tech enterprises, agricultural enterprises applying high technology and a number of activities in the areas of high technology;
- Scientific and technological services;
- Earnings from products made from technologies applied for the first time in Vietnam; products in the process of trial production;
- Earnings come from the implementation of the contract for scientific research and technological development;
- Transfer of technology of priority areas to organizations, individuals in socio-economically disadvantaged administration divisions;
- Machinery and equipment, accessories, materials imported for activities of scientific research and technological development;
- Other cases are provided in tax laws.
Hi-tech enterprises also enjoy preferential credit policies:
- Organizations, individuals that apply for loans for science and technology activities shall receive credit incentives according to charter of the fund where loans are granted;
- Organizations, individuals that apply for middle-term or long-term loans for science and technology activities shall receive preferential interests from the national fund for scientific and technological development and other state funds;
- Organizations, individuals that apply for loans at commercial banks to make investment in science and technology activities, especially activities of conducting experimentation and trial production shall be considered by the Vietnam Development Bank for interest subsidy or investment credit guarantees, putting aside a certain proportion of outstanding credit balance for science and technology activities.
- Programs, topics and projects on science and technology that directly serve key socio-economic programs of the State and develop national scientific and technological potential, especially projects on conducting experimentation and trial production requiring use of large capital shall be favored with access to official development assistance (ODA) as follows:
1) Non-refundable sponsorship or concessional loans for activities of scientific research and technological development;
2) Grant loans for projects on investment and construction of scientific and technological potential or refundable loans for projects applying findings from scientific research and technological development.
The above are the insights from Siglaw regarding the current legal regulations related to high-tech zones. For comprehensive consultation, please contact us:
Phone: (+84) 961 366 238
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- vphn@siglaw.com.vn
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