The Pioneer of Vietnam’s Information Technology
Since its establishment in 2001, Quang Trung Software City (“QTSC”) has become Vietnam’s biggest software park. It is also the first technology park to receive the Information Technology Specialised Zone Certificate from the Ministry of Information and Communication. With over 43ha of land divided into 11 subdivisions, QTSC has reached an occupancy rate of 88.2% in 2017. The Park is located in Ho Chi Minh City, a central location offering easy accessibility to vital Southern economic regions.
To date, QTSC has attracted numerous information technology companies, of which FDI companies account for nearly a half, many of them are coming from developed countries such as Japan, Germany, and the USA. It aims to become Vietnam’s IT best IT park in providing human resources and value-added services, and one of Asia’s Top 10 software parks by 2020.
In order to develop a long term strategy, QTSC has co-operated with KPMG in conducting a research to identify its position as well as benchmark it against other technology parks in Asia.
A Confirmed Leading Position
Despite being the leading software park in Vietnam, QTSC’s management is still unsure about its position within the industry in Southeast Asia, and Asia in a broader context. Because of that KPMG, a leading advisory company with extensive experience in strategic advisory services has been asked to work with QTSC in identifying The Park’s market position against techonology parks in other countries such as Dailian Software Park (China), Technopark (India), Cyberjaya (Malaysia), Cebu IT Park (Philippines), etc.
The benchmarking results have ranked QTSC 3rd out of 8 evaluated parks, based on the assessment of operational performance using indicators such as occupancy rate, quality of supporting services, on-site infrastructure, etc. The tenant-centered analysis has placed QTSC 4th among its peers in terms of attractiveness of FDI, number of companies located in the park, concentration rate of IT sectors, quality of human resources, etc. Overall, QTSC stood out for its investment incentives, presence of tenants from various industries, and the sustainable growth of companies located in the park.
(souce: KPMG Vietnam‘s research)
Enhancing efficiency towards new phase of development
Besides the benchmarking task, KPMG have also conducted interviews with the management of selected companies located in QTSC to listen to their comments on the operations of QTSC, as well as to understand their development strategies. At these interviews, most companies were satisfied with The Park’s telecommunication infrastructure, value-added services, and facilities. Areas for improvement were trade promotional activities and on-site supporting services, etc. which the interviewees wish to see better services.
When asked about long term strategy for QTSC, all companies agreed that it needs to continue focusing on its competitive edge in software outsourcing, while developing other potential market segments such as high tech agriculture, artificial intelligence, smart city models, etc.
In accordance with KPMG’s recommendations, QTSC’s board of directors plan to call for investments from private investors both within and outside of Vietnam through the model of public–private partnerships (PPP). Additionally, QTSC is also planning to co-operate with external third parties to provide on-site supporting services, as well as partner with foreign developers of IT/software parks to develop specified sub-zones within QTSC, in order to leverage their financial capabilities and experience, and maximize joined marketing programs.
Continuing with restless effort of QTSC and its tenants, equipped with the efficient support of Ho Chi Minh City’s government authorities and the Ministry of Information and Communications, QTSC is striving to prove itself as the pioneer software city of Vietnam, and is committed to becoming one of the leading software parks in Asia.
Lam Nguyen Hai Long – CEO of QTSC
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