Binh Dinh’s Chairman speaks up for FLC Group

Chairman of the Binh Dinh People’s Committee said that he would personally take responsibility for a number of procedural violations in FLC Group’s project in the central province of Binh Dinh, and requested the Ministry of Construction (MoC) to work with the province to further clarify a number of issues in the inspection report.

A recent inspection by MoC revealed numerous procedural violations in FLC Group’s project in the central provinces of Binh Dinh and Thanh Hoa.

In the inspection report, MoC recognised that FLC has been implementing a number of projects, contributing to the socioeconomic development of many regions in the country. However, aside from positive contributions, MoC inspectors also listed numerous violations in the implementation of FLC Quy Nhon and FLC Sam Son complexes, including the lack of various planning and inspection records as well as permits.

According to VnEconomy, on July 23, Ho Quoc Dung, Chairman of the Binh Dinh People’s Committee, spoke with reporters about the inspection. He stated that the province will request to work with MoC to further clarify some of the issues in the inspection report.

Binh Dinh chairman speaks up for FLC Group
Ho Quoc Dung, Chairman of the Binh Dinh People’s Committee

Dung said that the Binh Dinh People’s Committee allowed FLC to work on the Quy Nhon project before completing all procedures outlined in the province’s policies of attracting investment, creating jobs, and promoting local economic development. He also said that sometimes investors are “victims” due to various hiccups in the licensing procedures.

Dung stressed that the reason many projects have been committing procedural violations in recent years is partly because the process still has redundancies and the inspection process for licensing is very slow, affecting investment efficiency. Not to mention, current regulations on procedures for construction still have many limitations that need to be addressed.

“If the licensing process takes several years, surely investors will be discouraged. When the project’s economic efficiency is affected, investors will lose motivation. On the other hand, if the project can be finished quickly, the benefits for the local economy will be great,” Dung stressed. “The province allowed developers to design and implement the projects, while working on the necessary paperwork. This helped the developers finish their projects quickly, while at the same time increased the province’s budgetary revenue and created thousands of jobs.”

According to Dung, these violations did not cause serious consequences. On the contrary, they even contributed to the national and local economies and should be handled with consideration. At the same time, MoC should review and revise the necessary regulations in order to create a more accommodating legal framework for businesses.

“The government’s focus should be on providing better conditions and facilitating the business environment to grow. The role of local governments in this is very important,” he said.

“For a poor province like Binh Dinh, attracting private capital to develop the economy is extremely important. Without capital from private businesses, it is very difficult for the province to develop.” Dung also noted that before FLC, Binh Dinh did not have any major investors in tourism infrastructure.

Returning to the conclusion of MoC’s inspection, Dung said he is prepared to personally take responsibility and present an explanation to the prime minister.

“Even if these violations draw disciplinary action, I would still request that government agencies at all levels try to facilitate and support businesses,” he said.

According to MoC’s inspectorate, the people’s committees of Thanh Hoa and Binh Dinh, and developer FLC, must report on the implementation of the procedures recommended by MoC by September.

FLC said that all paperwork and procedures have been completed in accordance with the laws and regulations and have been submitted to the relevant agencies.

No statement has been made by the Thanh Hoa People’s Committee or its chairman so far.

By Trung Nguyen



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