Tax incentive in Saigon Hi Tech Park – How appealing are they?

Since 2020, Thu Duc City has been positioned as a satellite city for the parallel development of Ho Chi Minh City with Saigon Hi-Tech Park as its core, along with investments in infrastructure such as Metro Line, the new Mien Dong Bus Terminal, highways, ring roads and many more. Moreover, the government is actively encouraging and supporting high-tech enterprises in various aspects, including corporate income tax. It can be said that this is the opportune time for Thu Duc City to transform into a key area for science and technology.

Boosting digital transformation and high-tech development

As a new spearhead in science and technology, Thu Duc City has established an innovative area with its first core Saigon Hi-Tech Park. This is the reason why Thu Duc City is being prioritized for the deployment of 5G networks to facilitate the development of high-tech enterprises. The expected implementation of 5G will enhance the quality of work and education in Saigon Hi-Tech Park regarding development, research, and technology product manufacturing.

Thu Duc City is prioritized for 5G network transformation to serve scientific research and development

Thu Duc City and Saigon Hi-Tech Park

Thu Duc City was established in 2020 and covers an area of approximately 211,5 km2, including three former districts of Ho Chi Minh City: District 2, District 9, and Thu Duc District. Located in the Eastern part of Ho Chi Minh City, it is seen as an important position in the key economic zone of the southern region due to its strategic transportation links to provinces in the Southeast. Currently, Thu Duc City is being developed as an innovative urban area, with Saigon Hi-Tech Park as its core.

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Thu Duc City is oriented to become a key economic and scientific region in the Eastern Saigon

Saigon Hi-Tech Park spans 913 hectares and is located in the Eastern part of Ho Chi Minh City, belonging to Thu Duc City. It is considered a crucial part of Eastern Saigon, and therefore, transportation infrastructure is highly developed in this area. The main entrance to Saigon Hi-Tech Park is located on Highway 52 (Hanoi Highway), along with Metro Line No.1. Station No. 12 has a pedestrian bridge directly connecting to Saigon Hi-Tech Park.

As the national leader in science and technology, Saigon Hi-Tech Park receives significant infrastructure investment, especially direct management and support provided by Ho Chi Minh City People’s Committee. Quality young talent pools are supplied through a wide range of prestigious universities such as the National University Urban Area, FPT University, Fulbright University, HUTECH, and other institutions within Thu Duc City.

Attractive incentives from Saigon Hi-Tech Park for businesses

Tax Incentive in Saigon Hi-Tech Park

One method to attract businesses, especially high-tech enterprises, to join in and invest in Saigon Hi-Tech Park is through its appealing tax rates. Some tax incentives in Saigon Hi-Tech Park can be applied to high-tech businesses including:

Corporate income tax incentives:

• A 10% tax rate for the first 15 years of operation. In detail, 0% for the first 4 years, 5% for the next 9 years, and 10% for the last 2 years.
• The 10% tax rate can be maintained for a maximum of 30 years for projects utilizing high technology and having large-scale investments, encouraged by the Vietnamese Government.

Import tax for fixed assets:

• Exemption for import tax for machinery, equipment, components, spare parts, etc. used in production.
• Exemption for import tax for domestic materials and supplies that have not been locally produced for the purpose of manufacturing machinery, equipment, or construction.

Businesses get exemptions for export-import taxes and value-added tax:

• Exemption for taxes on imported goods used for scientific research and technological development.
• High-tech businesses are exempt from export taxes and value-added tax for their own goods and products.

It can be seen that the corporate tax incentive in Saigon Hi Tech Park and other tax policies are methods employed by the Government to support and encourage the investment of high-tech enterprises, aiming to position Vietnam on the global technology map.

Tax incentive in Saigon Hi-Tech Park encourages the growth of high-tech enterprises

Businesses eligible for tax incentive in Saigon Hi Tech Park

Businesses eligible for the tax incentives must either establish their companies within Saigon Hi-Tech Park or have investment projects in Saigon Hi-Tech Park. These businesses can be engaged in high-tech manufacturing, supplying high-tech products or services, or conducting research and development in high technology. Some high-tech sectors that the Government encourages include software technology, Internet of Things (IoT), Artificial Intelligence, software, robotics, computer science, and many more.

However, high-tech enterprises in Vietnam often face a challenge in finding a suitable location to establish their “home.” Not every company can easily build their own office or research lab. Therefore, a common and practical solution chosen by these businesses is to rent office spaces in suitable locations at reasonable costs.

OneHub Saigon Business Park – A “home” for high-tech businesses in the East of Ho Chi Minh City

Overview of OneHub Saigon Business Park

OneHub Saigon is an integrated business park located at the entrance of Saigon Hi-Tech Park. Therefore, high-tech businesses that establish their offices here can enjoy favorable corporate income tax incentives and other advantages Saigon Hi-Tech Park provides.

Located on the main route of Hanoi Highway (National Highway 52) and the entrance to Saigon Hi-Tech Park, OneHub Saigon is directly connected to Station No.12 of Metro Line No.1 (from Ben Thanh to Suoi Tien). This business park comprises six office buildings, one data center, one commercial center, one training center, and two integrated accommodation buildings (Work-Office-Home-Office buildings) for the needs of high-tech businesses.

OneHub Saigon is designed as a campus-style business park with lush greenery and low-rise building, creating a relaxed and comfortable working environment. Moreover, all office buildings within OneHub Saigon are constructed to meet the green standards of LEED Certification and of Grade A quality, tailored to efficiently support the operations of high-tech enterprises.

See more: 1Hub Data Center worth $70 million

An Overview of the OneHub Saigon Business Park

OneHub Saigon – A Future Tech Hub

The advantage of having an office in Tech Hub is the connections among businesses. With the aim of creating an ecosystem for technology companies, OneHub Saigon focuses on providing a sharing space to facilitate networking, exchanges, and collaborations among high-tech businesses. Operating within an ecosystem that includes large-scale technology companies like Intel, Samsung, Nidec, FPT, etc. offers significant benefits for businesses seeking opportunities for cooperation, learning, and mutual growth.

Explore: What is inside OneHub Saigon – A future Tech Hub in Saigon Hi-Tech Park?

The lush greenery of Tower 1 at OneHub Saigon Business Park

Overall, OneHub Saigon encompasses all the elements of a high-quality Tech Hub, including good infrastructure Saigon Hi-Tech Park gets well-planned investment), convenient transportation, a complete Campus-style office model with modern facilities, and a technology business ecosystem. It is undoubtedly a suitable destination for many high-tech businesses in search of office spaces.

Conclusion

Saigon Hi-Tech Park is currently a focal point of scientific and technological development, with significant investments made by the city to become a leading technology hub nationwide. In addition to high-quality infrastructure, prioritization of 5G networks and convenient transportation, attractive policies of tax incentive in Saigon Hi-Tech Park are also considered an outstanding advantage of Saigon Hi Tech Park.

For high-tech enterprises seeking quality office space within Saigon Hi-Tech Park to benefit from these attractive incentives, OneHub Saigon could be an ideal choice with its affordable costs, and Grade A office buildings with a high-tech business ecosystem for collaboration and development.

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