The high-tech industrial park model is a model that strongly attracts foreign investors. This is also a model expected to be developed in the period 2030 – 2045 with the goal of sustainable development towards high technology of the State. Please join us to update information about High-tech Industrial Park – The hottest industrial park model of 2024 in the article below!
1. Overview of high-tech industrial park
1.1. Definition
According to Clause 6, Article 2 Decree 35/2022/ND-CP, High-tech industrial park (IP) is defined as an industrial park attracting the following projects:
- High-tech and information technology projects in industries and professions with special investment incentives according to state regulations.
- Projects with technology transfer are on the list of technologies encouraged for transfer by law.
- Science and technology business incubator according to State regulations.
- Investment projects for creative startups, innovation, research and development, education and training.
1.2. Characteristic
High-tech industrial parks have the following basic characteristics:
- Regulations on land area: In accordance with Decree 35/2022/ND-CP, at least 30% of the industrial land area in the high-tech industrial park must be allocated for attracting investment projects as designated.
- High-tech products: Products manufactured within high-tech zones are strictly required to be on the List of high-tech products eligible for investment and production incentives listed on Decision 38/2020/QĐ-TTg.
- Expenditure for R&D: According to Annex 1 of Decision 38/2020/QD-TTg, total research and development (R&D) expenditure incurred in Vietnam shall account for at least 5% of the annual total revenue. R&D operating expenditure shall account for at least 1% of the annual total revenue.
- Talent Pool: A minimum of 5% of the project’s total workforce should have a university degree or higher and be directly engaged in research and development tasks.
1.3. High-tech industrial park policy
According to Article 31 Decree 35/2022/ND-CP, State policy on the development of high-tech industrial parks is prescribed as follows:
- Encourage and support new investors in the high-tech sector or be able to convert all or part of established industrial parks to high-tech industrial parks according to regulations.
- Investment incentives apply according to geographical areas and industries. Incentives are for infrastructure investment and business projects and investment projects in high-tech industrial parks according to the provisions of investment law and other regulations.
- Support for administrative procedures, technical advice, investment promotion, and provision of information for investment cooperation by competent State agencies according to the Regulations in this Decree.
2. Benefits of high-tech industrial parks
Developing a high-tech industrial park model brings greater benefits than traditional industrial parks. Includes a trio of economic, social, and environmental benefits.
2.1. For the economy
High-tech industrial parks bring many benefits to the national economy such as:
- Focused expertise: High-tech industrial parks focus on expertise in a certain field, for example, information technology expertise. This contributes to improving working efficiency and achieving the most optimal results.
- Shared resources: With a minimum required area of 30% high-tech projects, high-tech industrial parks create opportunities for sharing resources, services, knowledge, and materials. Like industrial symbiosis, shared resources both reduce costs and help.
- Networking opportunities: Businesses operating in high-tech industrial parks have many opportunities to connect and cooperate in technology transfer with each other. In addition, forming a high-tech industrial park promotes cooperation in research, investment, and technology development with foreign businesses.
- Increased exports: More high-tech industrial parks will contribute to increasing the country’s export of high-tech products. In addition, increased exports also promote FDI capital flows into priority industry groups in high-tech industrial parks.
- Increased international competition: Developing high-tech industrial parks will contribute to enhancing competitive advantages in the international market. Currently, high-tech industrial parks are also the direction of many real estate giants globally.
- Attracting domestic and foreign investment: High-tech industrial parks carry a favorable investment environment for domestic and foreign businesses and investors.
2.2. For society
Besides economic benefits, high-tech industrial parks bring potential to society. As follows:
- Highly skilled workforce: High-tech industrial parks require a specialized and highly skilled workforce. Therefore, developing high-tech industrial parks is also a condition and opportunity for work to elevate a highly skilled workforce. High-tech industrial parks are also the priority choice for technical and professional labor resources.
- Job creation: Developing high-tech industrial parks contributes to creating jobs for workers. Improve people’s living standards and reduce the unemployment rate.
- Improved infrastructure: Forming a high-tech industrial park requires high-quality infrastructure and adequate conditions for the development of high-tech industries. High-tech industrial parks are also given priority by the state to support and create favorable conditions for technical infrastructure.
- Technology transfer: High-tech industrial parks are a favorable environment for technology transfer between domestic enterprises. More specifically, this is a model that strongly welcomes technology transfer from foreign businesses and partners into Vietnam.
2.3. For the environment
In addition to economic and social roles and benefits, high-tech industrial parks also bring great benefits to the environment, including:
- Green Initiative: High-tech industrial park with unique characteristics favorable for research and promotion of green initiatives such as improving the efficiency of waste and water treatment, and enhancing green technology and clean energy.
- Focus on clean technology: With the goal of sustainable development and minimizing net emissions, high-tech industrial parks are a favorable environment for the development of clean technology.
- Developing an environmentally friendly industrial park model: In fact, high-tech initiatives and developments in high-tech industrial parks are applied as a way to form environmentally friendly industrial parks. For example, renewable energy is applied in renewable industrial parks.
3. Current status of high-tech industrial park
3.1. In Vietnam
Currently, Vietnam has a few typical high-tech industrial parks such as Hoa Lac high-tech industrial Park 2 (Hanoi), Thang Binh high-tech industrial Park (Quang Nam), and An Phat high-tech industrial park 1 (Hai Duong). In just 1 year, An Phat 1 is the industrial park attracting the most investors in Hai Duong province.
By the end of 2023, Vietnam will have more than 620 industrial parks across the country, including 397 newly established industrial parks in 2023. However, the number of high-tech industrial parks is relatively small (about 1% of the total industrial parks).
The current situation is that high-tech industrial parks in Vietnam have not yet developed their potential as expected. The biggest challenge in implementing high-tech industrial parks is the incompetence of the legal system and inconsistent legal guidance on this model.
Experts believe that the incentives for high-tech industrial parks are not adequate enough. Though the amount of capital spent on this model is large, there may be difficulty in the near future in further attracting new capital into this model.
Besides, the formation of high-tech industrial parks requires infrastructure and favorable locations, with a larger area than traditional industrial parks. This requires long-term and effective infrastructure planning and development. For example, Da Nang Hi-Tech Park, despite having a large land fund, is hindered by a climate that is less favorable for production.
Overcoming the past situation, the green & high-tech industrial park model is being paid attention to and promoted by the Government in the period 2030 – 2045, to meet the goal of building sustainable industrial parks and promoting environmental protection.
Although they are only at the beginning of the transformation phase, the “big guys” in the industrial park real estate industry have quickly grasped the market wave. Typically, in the first half of 2024, a series of investment waves poured into the high-tech industrial park model.
High-tech industrial park projects have begun to be approved and implemented such as Tuong Linh high-tech industrial park – Nghe An (353 hectares), a high-tech industrial park in O Mon district – Hanoi (250 hectares), Amata Industrial Park City Long Thanh – Dong Nai (410ha).
3.2. In the world
In the world, the high-tech industrial park model was formed and developed very early. High-tech industrial parks play a huge role in increasing the country’s competitiveness in the international market. The development of high-tech industrial parks is very prevalent in developed countries such as England, Malaysia, China,…
China is one of the countries that is focusing on developing a series of high-tech industrial parks. Today, high-tech industrial parks in China have entered a period of strong growth.
One of China’s high-tech industrial parks is Zhuhai. Aiming to build into China’s leading developed high-tech industrial park, Zhuhai has formed a unique development path, through system and mechanism innovation, the industrial concentration of “High-performance enterprises, and industrial new technology”. From there, it brings significant efficiency and strongly contributes to the regional economy.
4. The goal of developing high-tech industrial parks until 2045
In general, although the high-tech industrial park model is not new, its development speed has been relatively slow in previous years. However, with the goal of sustainable development and the inevitable trend of environmentally friendly industrial parks, the high-tech industrial park model will be the type promoted by the State in the coming period.
In Vietnam, Congress XIII’s major goal is to build a strong nation on a digital platform. Among them, high-tech and environmentally friendly industries are priorities for development.
It can be said that the orientation of developing high-tech industrial parks is a sustainable development trend in the world, ensuring a timely response to the 4.0 industrial revolution. More specifically, developing high-tech industrial parks is a leading step in inventing green initiatives and green technology to protect the environment.
Therefore, in the future, the green technology industrial park model is not only a goal of the State but also a destination for investors and FDI enterprises when entering the industrial park real estate market in Vietnam.
Green & High-tech Model Industrial Park Green is the desired direction in the period of economic transformation to sustainable development. We hope that the above article has helped readers understand better about the High-tech Industrial Park model. If you want to learn about the industrial park real estate market, don’t forget to read more articles at https://dulongip.vn/ please.
