Vietnam Ministry to Clamp down Sluggish FDI Projects
The Foreign Investment Agency (FIA) under the Ministry of Planning and Investment said that it will inspect domestic and foreign-invested projects which were reported stagnant in the first quarter.
The FIA explained that many foreign investors have faced difficulties in raising funds to implement their licensed projects amid the global economic downturn.
Of the projects, authorities of the northern province of Bac Ninh have withdrawn the license of Republic of Korea-invested IGS Vietnam Co. as it failed to raise funds to develop its $240 million industrial complex.
Still, the central province of Khanh Hoa plans to revoke a license of a $500 million shipyard project it allocated land in 2009, the provincial Department of Planning and Investment Vo Tan Thai said, adding that PetroVietnam Group is invited to carry out the project.
Authority of the central province of Ninh Thuan has warned that it may revoke Malaysia’s Lion Group’s license to build a $9.8 billion steel complex if the firm do not implement the project as pledged.
Between January and April, Vietnam attracted a total pledged foreign direct investment (FDI) of $5.92 billion, down 25.7% from a year earlier, and $3.4 billion of the value was disbursed, up 36% on year. (VNA)
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