VietNamNet Bridge - The plan to build Da Nang Information Technology Park, which is part of Vietnam’s dream to create its own Silicon Valley, remains on paper.

 

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Da Nang City authorities hoped that it would change the face of the city. It was based on Silicon Valley in California and Taiwan’s Hsinchu High-tech Park.

It was expected that the park would attract 100 high-tech firms which would make products worth $3 billion a year.

The project was developed by Rocky Lai & Associates in 2013 on an area of 341 hectares in Hoa Vang District of Da Nang City.

The investor planned to develop technical infrastructure, while Japanese KDDI Group planned to build information technology infrastructure with international standards.

Of the 100 firms the high-tech park planned to attract, 5 percent would be large and potential businesses, and 95 percent small and medium businesses. It was estimated that 25,000 jobs and turnover of $3 billion would be created each year.

However, the project remains on paper though two years have elapsed. 

The investor still has not started the project even though the Da Nang City People’s Committee repeatedly urges implementation. The VND50 billion has been disbursed for site clearance.

The Da Nang City People’s Council, after many investors’ delays, has decided to revoke the investment license granted to the project.

Other large cities in Vietnam such as Hanoi and HCM City also cherish the ‘Silicon Valley dream’.

Nguyen Van Vy from the Bac Ha University believes that Vietnam has many great advantages to do so, including a good labor force in information technology which is now closer to the world level in quality.

However, Vy said Vietnam would need more time to turn the dream into reality. 

“Where to invest, how to invest and how to use investment capital in the most effective way remain the unanswered questions,” he said.

Vy noted that the most important investment is in human resources development. Meanwhile, local authorities now are mostly focusing on developing infrastructure and facilities.

“There are two things that need to be done to implement the dream – consulting with experts and intellectuals and changing the management mechanism,” Vy said.

Nguyen Tri Hieu, a renowned expert, warned that the Silicon Valley project would meet financial problems because commercial banks were not interested in funding technology firms, and there were few venture funds in Vietnam.

He also said it would take Vietnam at least 10 years to prepare its labor force for a Silicon Valley development.

Dat Viet