Construction of Vietnam's biggest sofware center is underway

Construction Quang Trung Software Park, the biggest centre for software production and services in southern Vietnam, started on October 5 in Ho Chi Minh City.

For the first phase of the project, to finish by the end of 2001, Ho Chi Minh City has invested VND 190 billion (US $13.6 million) in upgrading seven buildings in the former Quang Trung Fair and Exhibition Centre and the transport system around and in the park and in building electricity, drainage and waste treatment systems.

The government has pledged US $3 million for the park's telecommunications system.

Eighteen domestic and foreign software production and service companies with 1,290 progammers have so far registered for operation on 21.832 square metres in the park.

The city has nine policies in place offering incentives in terms of communications fees, income tax, house and land rents, electricity and water charges, investment and first entries.

Vietnamese companies will be exempted from income tax for the first two years of operation and foreign-invested companies, for the first four years. They will be entitled to a 50% reduction in the income tax for the next two and four years, respectively.

Overseas Vietnamese investors will be given another 20% cut below the above-said rates. Other incentives will also be applied in relation to export turnover, value added tax, duties on software exports, and individual income tax.