Today I want to tell you about an interesting location that I came across in Ho Chi Minh City as a potential location to setup offshore BPO or ITO operations – Quang Trung Software City (QTSC), 10 miles North of Ho Chi Minh City.
I came to Software City almost two years ago on a due diligence visit to a couple of Vietnamese ITO companies. I was very impressed with the infrastructure of the site. The site is a concentric circle setup with some central amenities in the middle (restaurants, stores, park, bank etc…) with the office buildings formed circles all the way to the perimeter of the park. There are lots of beautiful landscaping and walking path throughout the site. Most of the buildings were about 10-15 stories high, some owned by major companies while other are shared space.
After my trip, I looked into the history and development of the City:
QTSC was developed about 14 years ago. It currently has 121 companies operating with about 33 building/infrastructures. QTSC has become an attractive investment place for those who want to seek the opportunity of cooperation and development in IT industry. Some of the big names which are the domestic companies and multinational companies are HP, IBM, KDDI, Hitachi, SPS, Luxoft, TMA, Global Cybersoft, VinaData, and Digitexx. There are a couple of technical colleges within the park as well. QTSC currently has almost 17,000 people studying and working there.
Up to now, QTSC has been the largest software park in Vietnam and it is the first to be officially awarded the Certificate of Information Technology Park by the Ministry of Information and Communications. In addition to the ISO 9001:2000, QTSC achieved ISO 27001:2005 for the security and information safety in telecommunications and Internet services.
What made it special?
Based on conversations with the executives based in QTSC, there are lots of advantages for being at QTSC. The execs spoke highly of the People Committee of QTSC, this committee has material “Pull” within the HCM City authority and the committee played an active role in speaking on behalf of their tenants. I have known cases where the committee stepped in to help resolve or reverse decisions that negatively impacting their tenant.
QTSC also has tax incentives for located companies. Companies are tax-exempt for their first four years after making a profit, and then only charged 50% of their normal taxes for the next nine years after their exemption.
QTSC has access to high speed internet connection and priority from the infrastructure such as the power grid.
The proximity to Ho Chi Minh City (the powerhouse of Vietnam economic growth) and a major population center is very attractive. Within QTSC’s district there is a population of over 500,000 people to recruit from.