The fate of Dubai World’s projects in Vietnam

Confusion surrounds the fate of Dubai World projects in Vietnam, as the group tries to overcome difficulties by restructuring its organization and finances.

Concerns have been raised that the financial crisis facing the group would create problems. However, partners of Dubai World in Vietnam still believe the group will not give up its projects in Vietnam.

Several months ago, Dubai World released an announcement that it needed 26 billion dollars to restructure matured debts, mostly incurred by two subsidiaries operating in the real estate sector, Nakheel and Limitless. The information immediately raised questions as to whether Dubai World could settle huge debts and what the fate would be of current group projects.

Dau Tu newspaper’s reporters earlier this week contacted John Hobday, a senior executive of Finance Dynamics Company, media representative for Limitless, to ask about the fate of projects in Vietnam. However, Hobday said that Limitless were yet to comment.

Meanwhile, Nguyen Huu Giang, deputy director of Quang Ninh province’s Planning and Investment, told Dau Tu reporters that local authorities are not worried about Limitless projects in Quang Ninh province.

“We have learnt from talks with the partners of the company in Vietnam that Limitless will still carry out its projects in Quang Ninh as previously scheduled,” Giang said.

Limitless is now implementing a project of building a six star hotel, Ha Long Star in Ha Long City in Quang Ninh with total investment capital of $550m. The project implementation has been going more slowly than previously expected, however, Giang says investor will speed up the project from December 10.

Vuong Duc Lanh, chairman and general director of Viet – My – Ha Long, a shareholder of Ha Long Star project, also says he has not seen any signs that restructuring Dubai World will affect the project.

“The company has poured tens of millions of dollars to the project and the project is being continued,” he said.

However, Lanh said Limitless recently asked government agencies to halt research on the project of Dam Nha Mac urban area until the group’s problems are settled.

In addition, Nguyen Quang Khai, Vietnamese Ambassador to UAE, when answering Dau Tu’s questions, said financial problems of Dubai World would affect projects in Vietnam, especially big projects needing big capital.

Recently, leaders of Dubai World announced Vietnam would be one of five countries which the group gives priority to in terms of investment.

Meanwhile Khai believes, that thanks to its own efforts and support from different sources, Dubai World would overcome difficulties.

VietNamNet, DT

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