Hangzhou Science and Tech Park Targets IT, BPO
By Jean-Charles Briand
HANGZHOU, July 15 – This is the first part in an ongoing series that will focus on development parks in the Yangtze River Delta. Over the next few weeks, we will highlight several parks, looking at their strengths and weaknesses and future outlook. Today, we look at the Singapore-Hangzhou Science and Technology Park. .
Located within the Hangzhou Economic and Technological Development Area, the real estate developer Ascendas, in collaboration with local authorities, is developing a new development zone: the Singapore-Hangzhou Science and Technology Park. With a total area of 43 hectares, the SHSTP should provide after completion 800,000 square meters of gross floor area.
As indicated by its name, this park focuses on high-tech activities, in particular the IT and BPO industry. Phase I is currently under construction and will be finished in 2009, will be exclusively dedicated to these domains. Furthermore, the SHSTP has already established a partnership with the Thailand Software Park. However, the next steps of development should also give a larger space to other sectors such as IC and bio-pharmaceutical.
Another important element for the success of the park is its cooperation with 14 universities and four ITO training institutions. With 12,000 potential graduates annually, the schools are expected to be able to provide the necessary skilled workforce for over 30,000 jobs the park would generate.
In addition to its location–close to the planned Hangzhou public transportation center and the Hangzhou airport—the park also enjoys certain preferential policies from local authorities and the presence of diverse service companies. So far, a number of banks and a HR firm have reserved offices. There will be also the opportunity for the tenants to benefit of the Ascendas international business network of enterprise located in other Ascendas parks throughout Asia.
As Hangzhou has seen its IT industry grow in years, more and more local and international companies have begun to look at the city as a viable alternative to not only Shanghai, but Dalian and Chengdu as well. Today, more than 2,000 companies have been established in the city. While SHSTP is relying on the industry’s strong growth it will face strong competition from the Hangzhou National Hi-Tech Industry Development Zone, which tends to get preferential treatment from municipal authorities. It remains to be seen whether the park’s limited scope of industry will helps or hinders its development.
For more information on the SHSTP, please contact Ascendas.
For assistance with legal incorporation and tax advice in Hangzhou, please contact Helen Ye, manager, Dezan Shira & Associates Hangzhou office.
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