According to Chu Tien Dung, chair of Quang Trung Software City Development Company (QTSC), Thu Thiem Software Park is a prime candidate for QTSC2.

“We are researching some places for QTSC2 and will report to the HCM City People’s Committee the best one,” Dung said. “As we have seen, Thu Thiem Software Park is an important candidate for QTSC2 with a high possibility of attracting investments because it has a good infrastructure network and it is less than 20 kilometers from the city centre.”

Thu Thiem new urban city is envisioned as a dynamic, diverse urban centre of HCM City, comprising facilities for trade, housing, public services, culture and education as well as open space that is suitable for a population of 130,000 people and a labour force of 350,000 people.

Thu Thiem New Urban Area Construction Authority deputy head Trang Bao Son told VIR that the authority had received inquiries from one foreign and two local investors including QTSC for developing the project.

According to Son, four roads are expected to be completed in 2015, giving the start for the formation of the Thu Thiem new urban area.

But Dung told VIR that the foreign investment attraction in software in particular, and in IT industry in general, had slowed remarkably during the economic downturn.

“The investment attraction progress is slower than before,” said Dung. Building a software park, he said, should have the strong support from the government.

QTSC was itself transferred from a company under the direct management of the city’s Department of Science and Technology to a member limited liability company in 2011, and could now could take advantage of the Thu Thiem new urban city.

HCM City authorities issued a decision to end the life of $1.2 billion project due to late progress of implementing Thu Thiem Software Park whose previous developers were Vietnam’s SaigonTel Joint Stock Company, a subsidiary of Saigon Invest Group and TA Associates International, a member of Taiwan-based Teco Group.

According to the previous developers’ plan, the park will be built on 15.9 hectares in the centre of the Thu Thiem new urban city, and would become the biggest software park in Southeast Asia.

Vietnam Investment Review - November 13, 2012