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Mammoth projects asleep in Vietnam
Foreign investors have registered grand tourism or construction projects in Vietnam costing billions of dollars but many are either lying undeveloped or moving at a snail’s pace after being granted a license.
A case in point is the US$9.8 billion Ca Na steel complex in Ninh Thuan Province.
Ca Na complex in Ninh Thuan Province
Located on a 1,650 ha area the project is set to have a steel complex, a thermal power plant, and a port.
However, it could be transferred to another investor because its current Malaysian developer Maju Stabil SDN (Under The Lion Group) has been too slow in initiating preliminary groundwork for the project whose license was granted as far back as September 2008.
A steel project in the Vung Ang Economic Zone in Ha Tinh Province
Considered the biggest FDI project in Vietnam, the Son Duong sea port and steel complex project by Taiwan’s Formosa Group has a registered capital of up to $16 billion.
Ever since the project broke ground in 2008, construction has been tardily implemented due to site clearance problems.
Little has been done so far.
Formosa has recently asked for special privileges from the Vietnamese government regarding credit line, import tax, and contractor duty.
Guang Lian steel mill in Dung Quat Economic Zone in Quang Ngai Province
Licensed in 2006, it has since gone nowhere after the 470-ha project was taken over by four different investors.
Creative City in Phu Yen Province’s Tuy Hoa city
With a license issued in October 2009, this $11.4 billion project is to build a modern township with high-tech facilities, a new financial, educational, and recreational center, training services for high quality human resources, and others to the south of the central province of Phu Yen’s Tuy Hoa city.
However, its US developer – Galileo Investment Group – has repeatedly failed to make necessary deposits after getting deadline extensions, risking the license’s revocation.
A long list of other stagnated billion-dollar projects can be drawn up right here: the $4.2-billion Ho Tram Strip developed by Canada-based company Asian Coast Development Ltd, $4.1-billion Saigon Atlantis Resort by the US-owned Winvest Investment (Vietnam) Ltd company, $1.3-billion Vung Tau Wonderful World Theme Park by another US-owned firm Good Choice USA Vietnam, Inc. – all of which are in Vung Tau city, a $3.5-billion university township in HCMC’s Cu Chi District developed by Malaysian developer Bejaya, and others.
vietnamnet, TuoiTrenews
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