The number of companies operating at Quang Trung Software City has dropped by five compared to last year, mostly due to the economic downturn, according to the director of the software centre.

Chu Tien Dung said that 95 companies, of which 49 were foreign-invested, were located at Quang Trung.

He blamed the drop on the downturn and lack of supportive measures from the Government.

The software city has asked the Government for permission to include not only software companies but also information technology-related companies to set up business in Quang Trung.

It also has asked for support under the Government's economic stimulus package.

Dung also proposed that the city reinstitute its support, which would enable companies to benefit from favourable taxes and administrative and development policies.

The chief investor of Quang Trung's main building, Mai Dinh Tiep, said that his company had not benefited from preferential taxes stipulated in a Government decision on industrial parks.

He said the company must pay corporate income tax of 25 per cent, higher than the 20 per cent rate paid by companies in other industrial parks.

The director of World Soft Company, Nguyen Ai Huu, said he had faced difficulties borrowing capital from local banks because his software company had no visible assets to mortgage.

Huu said the most important asset of software companies, the intellectual capital of its employees, was an invisible asset, and that local banks should take that into account when considering loan applications.

The head of the municipal People's Council's economic and budgetary board, Pham Van Dong, said the city had defined IT as a key economic sector, and would ask for financial support from other economic sectors to help the software city.

VietNamNet