Raft of mega projects lay idle
Raft of mega projects lay idle
Many billion-dollar foreign-invested projects in Vietnam that have leased large swaths of land are progressing at a snail’s pace, which has roused public concern.
In the north, the $2.25 billion Hai Duong 1,200MW thermal power plant project, invested in by Malaysia’s JAKS Resources Bhd, has seen little progress after three years of so-called construction. The Hai Duong People’s Committee spent nearly VND202.99 billion ($9.7 million) helping JAKS with site clearance and after numerous requests by the committee, the firm still owes VND9.2 billion ($430,000) which it has refused to pay.
In the central coastal province of Quang Ngai, $4.5 billion Gaung Lian steel project invested in by Japan’s JFE Steel Corporation is also stuck in the mud, explained a report sent to the Ministry of Planning and Investment by the local people’s committee. The project has only disbursed $73 million of total pledged capital and stopped construction in 2010 after the investor became unsure about continuing.
Meanwhile, the people’s committee of the southern province of Ken Giang is about to revoke the licence of Millennium Group’s (Hong Kong) $1.6 billion 520 hectare Bai Dai Resort project on Phu Quoc island due to very little progress after more than six years.
Many projects by Malaysia’s Berjaya Corporation Bhd in Dong Nai province and Ho Chi Minh City are also progressing slowly, leaving huge areas of land now only occupied by wildly growing grass and weeds.
These are just a few examples of numerous large-scale FDI projects in Vietnam that have seen little progress since being licensed. In the context of economic difficulties, local authorities have made efforts to help investors carry out their projects, but one expert said officials should be stricter towards these projects to prevent wasted land and to open up new opportunities to capable investors.
vir
