Hyundai Tan Phu plant under inspection
Hyundai Tan Phu plant under inspection
The Inspectorate of Ba Ria-Vung Tau province will conduct an inspection on licensing and revocation of the investment certificate of the Hyundai Tan Phu producing and assembly plant located in Phu My 1 Industrial Park in Tan Thanh district.
The decision came when the investor, which is a joint venture between Tan Phu JSC and Hyundai Group, continuously sent the documents to the local authorities to protest about its investment certificate being revoked in 2016.
In March 2011, the Ba Ria-Vung Tau People’s Committee granted an investment certificate for Hyundai Tan Phu to develop a mini bus and truck production factory with the total investment capital of $40 million. The factory has a designed capacity of 20,000 mini buses and 30,000 trucks per year. The construction of the project was expected to kick off in May 2011 and completed one year later.
However, the construction pace could not match the schedule. Even, when the investment certificate expired after delays in project development, the investor had yet to refresh the workshop leasing contract or submit the dossiers for a new investment certificate.
Ba Ria-Vung Tau asked the investor to sign the contract and complete procedures for the new investment certificate before May 2016, otherwise the province would revoke the project and transfer it to other investors.
As a result, the province issued the decision to withdraw the project because the investor missed the deadline to submit these dosseirs..
However, after receiving the decision to revoke the project, the investor has sent documents to the local authorities complaining that it still wants to develop the project and that the long delay in construction is due to a lack of support from the local industrial park board of management.
Notably, after receiving the investment certificate and the land, the investor spent VND40 billion ($1.75 million) developing infrastructure for the factory.
Besides, the company completed its tax obligations. However, during 2015-2016, the investor asked the management board to guide it to sign the contract but they refused to meet the investor.
Furthermore, the management board did not approve the investor’s desire to develop the project.
The investor sent complaints to the relevant government agencies after the province did not entertain its opinion.
Last June, after receiving the requests of the Government Office to report on the process of licensing and revoking the investment certificate, Ba Ria-Vung Tau asked the inspectorate of the province to conduct an inspection.
In April 2016, the Nhon Hoi Economic Zone Management Authority in the central province of Binh Dinh decided to revoke the investment certificate of a long-delayed Russian automobile project.
The project had the registered investment capital of $1 billion and was licensed three years ago, but was yet to get underway.
Russia’s Buscenter Met Company Ltd. planned to establish a 50-hectare factory in the zone to manufacture and assemble automotive parts and agricultural machinery.
