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Hanoi to build a $486 mn software park

Hanoi, the capital of Vietnam is planning to build a new software park worth $486 million. Hanel, an electronic and informatics firm has been chosen as the lead investor of the project. The project is planned to spread across 43 hectare and is expected to complete by 2019. An amount of about $44 million has been expected for infrastructural development and the rest will be used in developing the functional needs for the project.

Hanoi, the capital city of Vietnam, is planning a $486 billion IT hub in the Long Bien district and has already submitted the initial plan to the Prime Minister.
The Hanoi People’s Committee has picked electronics and informatic firm Hanel as the lead investor of the 43 hectare project, the local government said in a report.
Some VND942 billion ($43.6 million) will be allocated for the construction of the infrastructure, while more than VND9.5 trillion will be use to develop functional areas, the report added.
The project is slated to be completed by 2019.
Prior to this, Hanoi has invested VND30 billion in upgrading the Cau Giay integrated IT park – the first of its kind. Also located in Hanoi, is the Hoa Lac Hi-Tech Park, the country’s largest hi-tech space, which has attracted a number of domestic leading telcos and tech firms such as FPT Corporation,Viettel Group and Hanoi Telecom, as well as foreign-partnered projects.
“The formation of hi-tech and software parks is a major solution to bolster foreign investment in the Vietnamese IT sector,” the report stated.
While Hanoi aims to develop IT as the economic driver, Ho Chi Minh City has led with the launch of the Quang Trung Software City (QTSC), which “can be seen as the most successful national IT project”.
With the total investment of VND250 billion from the government, QTSC, which began operation in 2001, has 33 Vietnamese and overseas investors on board. These investors registered a total investment of VND6 trillion.
According to Lam Nguyen Hai Long, QTSC’s deputy director, the centre hosts almost 120 IT firms, four of which are the world’s leading companies: Hewlett-Packard (aka HP), the International Business Machines Corporation (IBM), Japan’s KDDI and Hitachi.
In the first quarter of this year, the combined software sales of these units reached VND800 billion ($37 million), in which exports hit $20 million.
(Source: Deal Street Asia)