Southern Province May Reject Two Foreign-invested Projects
The Ba Ria-Vung Tau province authorities are seeking local concerned agencies’ opinions to remove two projects totaling to US$153 million from its list of licensed projects, the Labor Online newspaper said.
The committee chairman, Tran Minh Sanh, said the two projects are Thi Vai international port worth US$56 million and Paradise tourism resort capitalized at US$97 million.
Sanh said the port project, jointly carried out by the two local firms of VTS and the Vietnam Steel Corporation and Japan’s Kyoei Stell, received investment licenses from the Ministry of Planning and Investment in May 1997.
However, many key works of the project have to date remained on paper due to the investors’ disagreement in legal capital contribution.
Licensed in 1991, the Paradise international tourism resort has so far built a 24-hole golf course and an entertainment park, meanwhile, lots of important works such as a 500-room hotel have not yet been kicked off, according to the official.
The resort, a joint venture project between Vung Tau International Tourism Company and a Taiwanese partner, Paradise Development and Investment Company, has a lifespan of 25 years.
The investors attributed the stagnation to the project’s short lifespan; therefore, they faced difficulties in capital mobilization.
The provincial authorities allowed the extension of the project’s operation time to 50 years to help the investors to seek capital sources.
However, the resort construction is now moving at snail’s pace, resulting in both financial and human resource wastes. (Labor Online)
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