The majority of 24 projects valued in billions of dollars licensed in Vietnam since 2007 have not yet been implemented, while a number of them have had their investment licenses revoked.
Those projects that have had their licenses revoked include the USD9.8-billion Ca Na Steel Complex in Ninh Thuan Province, USD4-billion Dragon Beach Resort in Quang Nam Province and USD1.68-billion Creative City in Phu Yen.
Formosa’s USD9.8-billion steel project is among some major projects which have been resumed
Construction of the USD3.1-billion Vung Ro Oil Refinery may be delayed until mid-2013 although a contract on purchasing technology copyrights and overall technical design with the US’ A HoneyWell’s UOP LLC was carried out in August 2012.
Other big projects such as the USD2-billion new city in Dong Nai Province, USD1-billion Kobelco steel plant in Nghe An, USD4.1 billion Saigon Atlantis Hotel in Ba Ria-Vung Tau, USD1.6-billion Starbay tourism resort in Kien Giang and USD2.25-billion thermal power plant in Hai Duong have yet to begin construction.
A billion dollar hotel project site invested in by the Kinh Bac City Development Holding Corporation in Hanoi remains a wasteland. In 2009, Japan’s Riviera Group withdrew from the project due to financial difficulties. After that, the Hanoi People’s Committee allowed Kinh Bac City Development Holding Corporation to take over the project with investment valued at USD500 million.
Some good signs
However, there was some good news early this year, with Vinacapital working with the management board of the Chu Lai Open Economic Zone to introduce its partner to take over the USD4-billion South Hoi An entertainment complex project, replacing Genting Malaysia Berhad (Malaysia) who announced their withdrawal from the project.
Binh Dinh Province People’s Committee and the Petroleum Corporation of Thailand will meet the Ministry of Industry and Trade on January 10 to discuss an oil refinery project worth USD27-billion that is set for construction in the province.
In December 2012, the Binh Dinh People’s Committee submitted the project to the Prime Minister for an investment license.
The feasibility of the project is in doubt due to its huge capital; however, Petroleum Corporation of Thailand have insisted that they have sufficient capacity to implement it.
After being halted due to financial difficulties last year, some major projects have resumed, including the USD4.5-billion Ho Tram Strip and Formosa’s USD9.8-billion steel project.
An official from the management board of Ba Ria-Vung Tau Province’s industrial parks said the USD1.15-billion China Steel Sumikin project would be put into operation in the first half of 2013, creating over 1,200 jobs.
(Dtinews)