Ba Ria-Vung Tau takes action on delayed projects

The decision was made after the provincial Department of Planning and Investment consulted other local departments about ways to speed up the slow moving project, which has been moving at a snail’s pace for the last four year. “We have sent two documents to the project’s investor, Good Choice USA-Vietnam Co, asking the enterprise to complete the procedures required to liquidate the project,” Dang Minh Thong, the department’s deputy director, said. “After this, we will petition the People’s Committee to make a final decision on revoking the project’s licence. We have yet to receive a response from the firm,” he said. The Vung Tau Wonderful Theme Park Project includes a five-star hotel with 2,500 rooms, several four-star hotels with 4,000 rooms, an entertainment park and a convention centre. The project, one of the biggest in the province, has failed to get off the ground since an investment licence was granted in February 2008. “We have failed to contact the representatives of the investor, an affiliate of California-based Good Choice USA, in Vietnam,” Thong said. “After the licence is revoked, the province will keep development plans for the site unchanged, and will call for local and foreign investment,” he added. VNS... [read more]

20 Years of Vinh Phuc Economy: Achievements from Innovative and Dynamic Thinking With its potential and position, plus innovative thinking and dynamic investment attraction policies, Vinh Phuc province has become an effective destination for many major projects in 20 years since re-establishment, thus contributing to the success of many entrepreneurs, the growth of businesses and the prosperity of the locality. New thinking in investment attraction Vinh Phuc province was re-established in 1997 from the split of Vinh Phu province into Phu Tho province and Vinh Phuc province. Then, the province embarked on building an independent administrative unit with a lot of difficulties such as small natural area, and midland and mountainous terrain. As an agricultural province, its industry and service were not developed, companies used backward industries and achieved low economic efficiency; infrastructure was poor (6 communes did not have access to electricity, roads were not asphalted.) After re-establishment, the province defined industrial development as the foundation and investment attraction as a driving force of economic development. Thus provincial government embarked on various solutions to create a favourable and attractive investment and business environment. From an idea to a point of view that “investors are citizens of Vinh Phuc and the success of enterprises is the success of the province,” Vinh Phuc province introduced a variety of appealing investment attraction policies. Defining that administrative reform was the key to unlock an open investment environment, the province promptly enhanced the capacity of government at all three levels of province, district and…... [read more]

Viet Nam News Đà Nẵng - Đà Nẵng's Construction Department temporarily suspended construction of a 33-storey trading centre and apartment project in the city's downtown area as the investor has not yet been given permission from the department. The department said in statement that the project, which was granted an investment licence in 2010, has been under the process of design assessment by the Ministry of Construction. Deputy director of the department, Nguyễn Văn Nam said the project's owner, Vũ Châu Long Real Estate joint-stock company, intentionally started construction from September, and was given a fine of VNĐ40 million (US$1,800) from the department's inspection division for illegal construction. However, the project did not stop construction after that, and it had completed three-storey buildings. No supervision actions were given by local inspection agencies or administration in curbing the on-going construction of the project, just 1km from the city's administrative centre. Earlier this week, the city assigned the department and Hải Châu District's People's Committee to ban all vehicles and labourers from working on the project. The slow action in curbing the illegal construction of a big project in the city's downtown area revealed poor management and supervision from the city's grassroots and construction department. According to the city's Planning and Investment Department, the project was registered with total investment of VNĐ2.5 trillion ($111 million). In 2015, the city revoked two delayed development projects - a public park and an underground car park - in the city's downtown area. In a survey,…... [read more]

Flexible policy needed for slow property projects Dinh Dung The city government’s determination to cancel foot-dragging property projects places investors under pressure, forcing them to speed up their projects. However, some industry experts say that the policy should be implemented in a flexible way. Le Hoang Chau, chairman of the HCMC Real Estate Association (HoREA), talked to The Saigon Times Daily on this issue. The Saigon Times Daily: Quite a few investors will witness their projects cancelled given the policy of the HCMC government. What is your comment on this? - Le Hoang Chau: In my opinion, it is reasonable to axe the projects whose owners have not done anything, have not invested significantly, but have just got approval of location, simply reserving sites for investment. However, it is not easy to deal with the projects that have completed 50 percent of compensation work. What is the legal basis for project cancellation? Currently, there is only one legal basis, Decision 19 of the HCMC government on land allocation and leasing issued in 2008. According to this decision, there are agreements of location, a tool for investors to carry out site clearance, and approvals of location, which are granted when investors have received cleared sites (finished site clearance). Under this regulation, investors have to complete all procedures within 12 months. But, what is the basis for the 12-month time limit? I think there isn’t any legal basis. It is because the Land Law only specifies a time limit of 12 months…... [read more]

Hanoi to face messy haft-done works for 1000th birthday celebration By Ngoc Lan - The Saigon Times Daily HANOI - Hanoi will face numerous messy half-done construction works when the capital city marks its millennium anniversary in late 2010 as price hikes in construction materials have scared contractors away, a local official said. Tran Duc Vu, deputy director of Hanoi City's Department of Planning and Investment, told a meeting to review the city's economic performance in the first nine months late last week that as many as two-thirds of key projects were under tenterhooks. Many contractors for 29 key projects that were envisioned to beautify the capital city have shunned their winning bids, including some who have abandoned their deposits for such contracts, Vu said. The key reasons include the rising prices of construction materials, problems in site clearance, and the slow disbursement of funds on the part of the project owners, according to Vu. "After inspections, we have asked contractors to return to work and not to leave their construction machines idle at construction sites. We have considered replacing incapable contractors, or even project owners for their inadequate management capacity," Vu explained. Many projects that have fallen behind schedule will be all the more foot-dragging, and could be two to three years later than expected, including big infrastructure projects, he commented. In the middle of this month, an inspection team of the city's People's Council probed slow-moving projects in Hanoi, including Vinh Tuy Bridge, the extended section of National…... [read more]

By Van Nam - The Saigon Times Daily HCMC - The HCMC Export Processing and Industrial Zones Authority (Hepza) has said it will likely revoke the licenses of some 80 projects of both domestic and foreign investors this year due to long delays or ineffective operations. Hepza said the seven revoked projects were either ineffectively operating or having breached rules, such as illegal use of land for other purposes. Hepza in its document also noted it might consider the tough stance against 54 foreign-owned projects and 11 domestic projects at industrial parks around the city that have been moving at a snail's pace. "Hepza will continue working with the investors of these stagnant projects and if the investors fail to prove their competence to carry out the projects, all of these projects will be done away with in the rest of the year," said Hepza. Meanwhile, the watchdog is also considering granting investment certificates for several projects that are environmentally friendly. At the moment, 13 industrial parks and export processing zones around the city have attracted nearly 1,200 projects with total registered capital of US$4.9 billion. These include 710 domestic projects with registered capital of US$2.1 billion.... [read more]

Many tourism projects in Binh Thuan still inactive By Dao Loan - The Saigon Times Daily HCMC – Roughly seven out of every ten tourism projects in the coastal province of Binh Thuan remain inactive years after they have been licensed, and authorities said they would revoke those projects failing to abide by their timelines. Only 150 of such projects are operational now or under construction while up to 260 others remain on the paper, said Ngo Minh Chinh, director of the provincial Department of Culture, Sports and Tourism Chinh told the Daily last week that excluding a small number of projects that had just received licenses, investors were to blame for the delay of many other projects. He however admitted that several projects were hindered by open-cast titanium mines that would be exploited soon. “The mines shall be tapped before other projects can be developed so tourism investors who have projects on the titanium mines need to wait some more time,” he said. According to him, the provincial government cannot says when these tourism projects could continue development because relevant agencies are verifying the reserves of titanium as well as researching methods for mining activities. For other slow-moving projects, the provincial government would take punitive sanctions. Authorities will revoke the investment licenses of these projects if the slow development is due to the investors’ capacity, he said. Last year, Binh Thuan revoked investment licenses of 21 resort projects because of the slow progress. The coastal province with famous resorts…... [read more]

Ba Ria-Vung Tau cancels out 11 inactive projects By Le Hoang - The Saigon Times Daily HCMC - Authorities of the southern province of Ba Ria-Vung Tau have revoked 11 domestic and foreign investment projects in this year’s first half due to long delays or ineffective operations. The provincial Department of Planning and Investment said five foreign direct investment (FDI) projects with total registered capital of US$42 million have lost their investment certificates. They comprise Corsair Marine Co., Ltd. with capital of US$20 million, Charm Industrial Co., Ltd. with US$10 million, S&P Vietnam Co., Ltd. with US$6 million, Cantech Vina Co., Ltd. with US$4.9 million, and a branch of Full Power Co. with US$1 million. The department is also fielding suggestions from other departments before petitioning the provincial government to revoke the investment certificate of IDICO, the investor of the foot-dragging Tam Phuoc 2 Industrial Zone project. The tough stance by the provincial government sends a clear message of make-it or break-it to investors, and also help boost disbursements, especially among foreign-invested projects. In fact, foreign direct investment (FDI) disbursements in the first six months of this year are forecast to amount to US$570 million, up 9.8% year-on-year. Besides, in the first half of the year, the province also either revoked investment licenses or withdrew its approvals in principle for six domestic investors including Phu Hoa resort project by ADP Phu Hoa Joint Stock Co., a resort and villas project by Phuoc Long Enterprise, and an industrial zone project by…... [read more]

By Van Nam - The Saigon Times Daily HCMC – Scores of power projects nationwide have fallen behind schedule by two to three years due to the incompetence or poor financial capacity of Chinese contractors, said the Vietnam Energy Association’s chairman. Tran Viet Ngai told the Daily on Thursday the snail’s pace is seen at many thermo-power projects undertaken by Chinese contractors, including such as Hai Phong 1 and 2, Cam Pha 1 and 2, Quang Ninh 1 and 2, Mao Khe, Thai Nguyen, Vinh Tan 2, and Duyen Hai 1. The situation calls for the Government’s intervention. Ngai said his association submitted a document on September 12 to the country’s top leaders to propose tackling slow-moving projects relating to power generation, power grid, and coal exploitation, which have been delayed for two or three years. Ngai said the delay in progress of the many power projects could exert huge negative impacts on the country’s socio-economic development. According to the energy association, the causes of the delay lies in Chinese EPC contractors’ lack of technology, limited capacity, inexperience, problems in financial arrangement, inconsistent equipment, and low quality of equipment. All these qualifications of Chinese contractors cannot compare with those of contractors from developed countries, resulting in the postponement of construction and completion. In addition, Chinese contractors also brought Chinese workers into the projects they won instead of hiring Vietnamese engineers and workers as per the law. Ngai’s association noted that coal-fired and diesel-fuelled thermo-power plants as well as gas-powered plants…... [read more]

City gets tough on slow-moving resettlement projects By Dinh Dung - The Saigon Times Daily HCMC – The HCMC government is weighing revoking licenses of long-delayed resettlement projects, which causes a shortage in resettlement housing fund and slowing down the site clearance process in Thu Thiem New Urban Area in District 2. Nguyen Le Dung, deputy head of Thu Thiem Investment and Construction Authority (Thu Thiem ICA), said the city is taking drastic measures to accelerate the progress of resettlement projects. The program to build 12,500 apartments for resettlement purpose is planned for completion in late 2012 or the first quarter of 2013. Still, the program is now just halfway to its goal due to many slow-moving projects. So far, the municipal government has only received 1,100 resettlement apartments developed by Nam Rach Chiec Co. Ltd. (NRC) over a 17.3-hectare area in An Phu Ward. NRC has registered to build 1,844 apartments under the format of ‘land in exchange for infrastructure’. Given the current slow pace, it is hard for the developer to hand over the remaining 712 units by late this year as expected. If on schedule, a project of Duc Khai Joint Stock Co. with over 1,000 apartments will be finalized in late 2013. Another project of 4,200 flats invested by 21st Century International Development Co. should have been completed by now after two years of execution, but the developer remains silent. Meanwhile, South Korean investor Daewon has asked for permission to pull out of a resettlement project…... [read more]




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