City cancels out Thu Thiem Software Park project
Vice Chairman Le Manh Ha has signed the decision to cancel out this foot-dragging project, as the investor has failed to make any move after being given more time.
The US$1.2-billion software park project was originally rolled out by TA Associates Vietnam Limited, a 20:80 joint venture between the local Saigon Telecommunications and Technologies Corp., or SaigonTel, and Singapore’s TA Associates International, a unit of Taiwan’s Teco.
The project after winning the investment certificate in mid-2008 was kicked off in July that year but up to now no major work has been done and the investors have yet to pay land rent as committed.
Under prevailing laws, the HCMC authority could have suspended the project’s operation two years ago, but the city still insisted on facilitating the project implementation in the last three years.
However, under Decision 420 of the HCMC government, the investment license of Thu Thiem Software Park is now officially withdrawn. Earlier in November last year, Chairman Le Hoang Quan of HCMC approved revoking the project’s license because of long delays and inappropriate requests from the investors.
The local partner SaigonTel, a member of Saigon Invest Group, said in a proposal sent to the municipal government that the company had incurred huge losses due to its partner’s withdrawal from the project and sought permission to invite another foreign partner to replace Teco.
Regarding this proposal, an official of Investment and Construction Authority for Thu Thiem Urban Area (Thu Thiem ICA) said the city’s authority would organize bidding to select capable investors to carry on the software park project. SaigonTel could join the bidding if satisfying all requirements.
Trang Bao Son, deputy head of Thu Thiem ICA, told the Daily many local and foreign investors had shown interest in the project.
Apart from the case of Thu Thiem Software Park, the investor of another software project in Thu Thiem New Urban Area has also petitioned to scale down the investment. Vija Brain Park, developed by Japan’s VTJA PowerSource Corp., will be revised down to 3.3 hectares from the initial 10.3 hectares.
The Vija Brain Park project is one of the first projects to be licensed in Thu Thiem New Urban Area with the registered capital of US$610 million. The park is expected to specialize in integrated circuit (IC) design and electronic chips, software production and outsourcing for export, as well as office building and housing development.
