Tan Tao Group fails to deliver Quang Ngai project
Tan Tao Group fails to deliver Quang Ngai project
Tan Tao Group failed to implement the Vina Universal Paradise Trade and Service Complex project eight years after receiving the investment certificate from the central province of Quang Ngai’s authorities
The VND1.2 trillion ($56.3 million) project of Tan Tao subsidiary Vina Film Studio and Tourism Zone Investment JSC received the investment certificate in 2008. It was planned to be built on a 56.5 hectare site in Son Tinh district of the province.
According to the original plan, the project was going to be completed within four years and would include a residential area of 237 houses, 183 villas with gardens, and 56 bungalows, or one-storey wooden houses, a public area, as well as five trade-service blocks.
According to a recent document published by the provincial people’s committee, only 22 per cent of the site clearance has been completed, and VND87.5 billion ($4.1 million) has been disbursed to build infrastructure. No progress has been made since 2011.
Earlier, the investor requested the committee for an extension to finish the complex in 2018, with the site clearance being done in 2015. Still, the investor failed to meet the new deadline. The provincial people’s committee thus suggested the investor reduce the scale of the project.
In 2008, Tan Tao also received the investment certificate to build Vina Universal Studio-Resort project, with the total investment capital of $50 million. The project was planned to have a combined land and sea surface area of 2,500ha. Because the project start was continuously delayed, in 2011 the province revoked its investment certificate. At that point, Vina Film Studio and Tourism Zone Investment JSC asked to give up the project because of financial difficulties.
Another project by Tan Tao in Quang Ngai, Pho Phong Industrial Park, also had its investment certificate revoked due to slow progress in 2012. The VND285 billion ($13.4 million)/ 157ha project was licensed in 2009.
Tan Tao is amongst the largest private groups in Vietnam. It operates in a number of fields ranging from property to power generation, water supply and education.
