Teco, SaigonTel expects software park license in city soon

Tuesday, May 20, 2008
Teco Group and its partner Saigon Telecommunication and Technologies Corp., or SaigonTel, a member of Saigon Invest Group, are expected to obtain a license next month for building a big software park in HCM City.

The two companies, which have planned the project since early last year, have submitted the proposal to the city authorities to develop the project costing US$1.2 billion in Thu Thiem New Urban Area in District 2, the local party said.

Dang Thanh Tam, chair of Saigon Invest Group, told Daily that the park will be built on 16 hectares at the total investment of some US$1.2 billion, higher than the two companies' initial plan of more than US$500 million.

The two companies will set up a joint venture named the Teco-SaigonTel Software Park joint venture, whichSaigonTelwillholda20% stake while the foreign partner 80%.

At the park, the two companies will develop some 5-7 high-rise buildings with the total space of some 700,000 square metres for hi-tech, software, banking and insurance companies.

After more than one-year of preparation, we have finished all the paperwork for submission to the city authorities. We hope to receive the license next month," he said.

Tam said Teco is a multinational group operating the 10-hectare NanKang Software Park in Taipei, which yields annual revenue of some US$10 billion.

He said that the park in Vietnam would help NanKang Software Park's software companies to set up shop in Vietnam.

When Teco sets up the park in HCM City, its satellite companies will also come along, with billions. of US dollars in investment capital, Tam said.

Leaders of Teco Group and SaigonTel signed a memorandum of understanding (MOU) in March 2007 to establish the joint venture. Leaders of Thu Thiem Urban.Area Authority and the HCM City Department of Planning and Investment as well as the Vietnam Culture and Economics Office in Taipei witnessed the signing ceremony, which took place at the Nankang Sofware Park in Taiwan.

SaigonTel chair Dang Thanh Tam, who signed the MOU with chair Ted Huang of Teco, then told the Daily that the park would be built like the Nankang Sofware Park.

SaigonTel Corp is the owner of the 500-hectare ICT Kinh Bac Park and is attracting hi-tech projects. It is also the investor of two ICT SaigonTel buildings in Quang Trung Software City in HCM City's District 12.

Saigon Invest Group has been developing more than 20 industrial parks and 10 urban centres. It has been attracting the investment of and cooperating in joint investment with well-known investors like Canon, Marubeni Group (Japan), Foxconn Group and MiTac Group (Taiwan).

The group is also coopering with Foxconn Group to develop some industrial-urban -entertainment complexes in the country. (Sai Gon Times)