Entity set up in Saigon Hi Tech Park: Advantages for the IC industry

30-10-2023
Entity set up in Saigon Hi Tech Park: Advantages for the IC industry

The business environment is becoming increasingly competitive and complex, especially in the technology sector. However, in this context, entity set up in Saigon Hi-Tech Park has become an attractive solution and optimal advantage for entrepreneurs and companies in the semiconductor industry.

With the rapid development of the semiconductor industry in Vietnam, this environment is drawing attention and investments while providing significant benefits. Let’s explore why this is a critical step in promoting the development of the semiconductor industry in Vietnam.

Advantages for the semiconductor industry environment in Vietnam

In a conference titled ‘Connecting Vietnam’s Semiconductor Ecosystem with Southeast Asia’ in Ho Chi Minh City, Pham Duc Long, Deputy Minister of Information and Communications, emphasized that the Vietnamese semiconductor industry has three crucial advantages for development.

First, there is an abundant pool of human resources, with thousands of IT and communication technology graduates annually. Second, there are established high-tech zones and technology clusters in important economic centers like Hanoi, Ho Chi Minh City, and Da Nang, along with a large ICT business community. Third, the regulatory framework is gradually improving, with the government pushing policies to support the semiconductor industry, prioritizing semiconductor microchips.

Microchip industry and advantages in Vietnam

Microchip industry and advantages in Vietnam

The leaders of the Ministry of Information and Communications also mentioned that Vietnam is attracting the attention of leading chip manufacturing and design corporations worldwide, such as Intel, Samsung, Synopsys, and Renesas. Furthermore, domestic enterprises like FPT and Viettel have achieved significant progress in the semiconductor technology sector. Promoting the development of the domestic semiconductor industry has become a crucial goal and holds promise for contributing to Vietnam’s future development.

Guidelines for entity set up in Saigon Hi-Tech Park

Currently, a high proportion of companies established in high-tech zones enjoy various incentives from the state. To establish a company in a high-tech zone, specific conditions must be met, including the following:

1. For technology-based companies, they need to obtain a certificate as a high-tech company. The procedure is as follows:

  • Companies should submit an application for high-tech company certification directly at the headquarters of the Ministry of Science and Technology or via postal service.
  • The application should include: a request for high-tech company certification, a notarized copy of one of the following documents: Business Registration Certificate, Investment Registration Certificate, or Certificate of Science and Technology Enterprise.
  • The application must also contain a detailed explanation of how the company meets the specified criteria, such as high-tech product manufacturing, revenue from research and development activities, the number of specialized workers, environmental-friendly practices, and energy conservation. Two sets of documents should be submitted, one original and one copy.
  • In the event of an incomplete or invalid application, the Ministry of Science and Technology will send a request for additional documents and improvements to the company. After receiving this request, the company must complete the application and resubmit it to the Ministry of Science and Technology within 10 working days.
  • Once the valid application is received, the Ministry of Science and Technology will review and issue the high-tech company certification within 30 working days. In cases where certification is denied, the Ministry of Science and Technology will provide reasons for the decision to the company.

Saigon High Tech Park

Saigon High Tech Park

2. Businesses need to register their establishment according to their scale, nature, and specific purposes. There are five different types of business entities to choose from: Single-Member Limited Liability Company, Limited Liability Company with two or more members, Joint Stock Company, Partnership Company, or Sole Proprietorship.

3. If the business is a foreign-invested enterprise or has foreign investment capital, they need to carry out the registration procedures for investment as per the provisions of the 2020 Investment Law.

4. High-tech companies operating in fields that require specific conditions must comply with regulations during their investment activities. Businesses can refer to the 2020 Investment Law for more details on the conditional investment and business sectors.

See more: Learn what is a green office building

Additional considerations when establishing a business entity in Saigon Hi-Tech Park

Considerations for Choosing a Representative Office Location

When deciding to establish a representative office for your business, there are several important factors to consider. The choice of the location for your representative office can significantly impact your business operations, so carefully consider the following elements:

  • Strategic Location: Opt for a strategic location that can help attract customers, partners, and employees. In general, a central location close to commercial centers, industrial zones, or public transportation is a good choice.
  • Infrastructure and Utilities: Ensure that the chosen location has essential infrastructure like electricity, water, internet, and temperature control. Amenities such as restaurants, banks, and convenience stores are also crucial for employees and clients.
  • Rental Costs: This should be in line with your budget. Instead of only considering the base rent, also account for additional fees such as service charges, utilities, and maintenance.
  • Expansion Potential: Consider the potential for future business expansion. Is there enough space to grow and expand the office if needed?
  • Legal Regulations: Legal regulations regarding setting up representative offices can vary by country and region. Verify all legal requirements and regulations before making a decision.

What should you keep in mind when entity set up in Saigon Hi Tech Park?

What should you keep in mind when entity set up in Saigon Hi Tech Park?

  • Consider local needs: Understand the local market and the requirements of local customers. This can help you adjust the location and services of your representative office.
  • Security and surrounding environment: Ensure that your representative office is in a safe area and does not create a work environment that is detrimental to the health of employees.
  • Consider supplementary facilities: Consider the availability of amenities such as meeting rooms, postal services, reception, or cleaning services.
  • Accessibility: The location of the representative office should be easily accessible by public transportation or road and should be convenient for both employees and customers.

Choosing a location for your representative office is a crucial decision that can have a long-term impact on the development of your business.

Learn more: Boost the economy with corporate income tax incentives in Saigon Hi-Tech Park

OneHub Saigon – An ideal location to entity set up in Saigon Hi Tech Park

OneHub Saigon, located at the gateway of the Ho Chi Minh City High-Tech Park (SHTP), features a large commercial office complex with an extensive area of up to 12 hectares. Positioned along Hanoi Highway and directly connected to Metro Line 1 Ben Thanh/Suoi Tien station and the Ho Chi Minh City High-Tech Park station, OneHub Saigon stands out in the world of office spaces in Vietnam.

Notably, Tower 1 of OneHub Saigon has achieved LEED Silver green environment certification, setting a new standard for office complexes in Vietnam. Built with a mission to create an environmentally friendly environment for the sustainable development of businesses, OneHub Saigon promotes community connectivity and encourages innovation.

Integrated business park in Ho Chi Minh City - OneHub Saigon

Integrated business park in Ho Chi Minh City – OneHub Saigon

This commercial complex is ideal for tenants in high-tech fields and supporting industries such as information technology, biotechnology, new materials, precision mechanics, e-commerce, financial organizations, data centers, transportation, and many other sectors. OneHub Saigon comprises a total of 11 buildings with a total floor area of up to 360,288 square meters, including a large-scale commercial center, seven international standard Grade A office towers, two office towers combined with accommodation, and a training center.

Conclusion

Setting up a business in the Saigon Hi-Tech Park not only provides advantages in terms of investment environment, tax incentives, and modern infrastructure but also places opportunities for development within reach of entrepreneurs and investors. For the semiconductor industry, the competitive opportunities in the global market are increasing, and taking a step into the Saigon Hi-Tech Park can be an effective way to embark on the journey of exploring the world of technology and growing one’s business.

With support from local authorities and interaction with other businesses in the same industry, establishing a semiconductor business in the Saigon Hi-Tech Park can mark a significant step in shaping Vietnam’s technological future.

Learn more: 1Hub Data Center with an investment of over 70 million USD