Infrastructure Vs. Location

Quang Trung Software City has become a destination of choice for local and foreign ICT companies. Aside from being a hub of potential partners, the park also has the great bonus of infrastructure conveniences.

Quang Trung Software City (QTSC) has so far attracted 106 information and communication technology (ICT) companies. Among them are 48 foreign firms and 58 local ones. HP, IBM, KDDI, Luxoft, TMA, GCS and MISA are only a few outstanding names.

Rental and support advantages

According to Lam Nguyen Hai Long, QTSC deputy director, the software park has a host of competitive advantages which are attractive customers, old and new. “We tell potential partners that we have reasonable rents, excellent offices, high-speed Internet and stable power sources,” Long says. Rents, inclusive of operation expenditures like office lease, Internet, power, water and hygiene and convenience fees like dining and parking, at QTSC are over 40% lower than in downtown districts.

Enterprises operating in QTSC also confirm that the park has been a very reliable supporter capable of helping them handle unexpected problems. Through periodic meetings of the CEO, Investors and Human Resources clubs, companies have chances to discuss and set up partnership. They also commit to not take unfairly employees from others.

The successful partnership in projects between Larion and Digi-Texx is a typical example. QTSC is cooperating with Larion and Soongsil University (Korea) in opening training courses on ICT management.

Ngo Van Toan, deputy general director of GCS, says since his main offi ce was moved to QTSC in May 2007, the company has achieved great success. Its work force has risen from 400 to 600, and its annual revenue growth has been 25% a year. GCS has also expanded its business scope. “We once thought about the location disadvantage,” Toan says. “But now I’m quite sure our company made a right decision back then because QTSC is a hub for ICT players where partnerships are abundant.”

Nguyen Huu Le, chairman of TMA Solutions, one of the fi rst customers of QTSC, says in 2007, TMA Solutions began to transfer its big projects to the new offi ce in the park. Now, the park has becomed the company’s biggest facilities with half of its 1,300 employees working there. Moreover, at QTSC, the company has been in better conditions to intensify its training schedules. TMA has set up an internship center for students and installed an R&D center or mobile lab in the software park.

“After six years in QTSC, TMA has doubled the work force to 1,300 and will have 2,000 employees by 2015,” Le says. “Comprehensive infrastructure and incentives were what prompted TMA to choose the park. In addition, QTSC’s hearty support has helped TMA settle in after an initial diffi cult move.”

Further development

Lam Nguyen Hai Long says the steel overpass at Lang Cha Ca roundabout in Tan Binh District will be commissioned later this month. The new traffi c structure will help enterprises shorten the distance from the downtown to QTSC. In the future, a series of subway routes will be built, and QTSC will become an ICT bridge linking HCMC and other southern localities such as Dong Nai, Binh Duong, Long An and Tay Ninh.

Long says investors at QTSC are proceeding with works on offi ces for lease and other conveniences. For instance, Long Yen Co.’s office building project is under construction while Hong Minh Duc is investing in an apartment building for experts. Other projects are also in the pipeline. Among them are a backup data center by Hochiminh Stock Exchange and a building for software production and training by Vietnam Invest Joint Stock Co.

By Tieu Nha – The SaigonTimes Weekly