VietNamNet Bridge – Many huge projects capitalized at billions of dollars only exist on paper and many investors appear to have forgotten or abandoned them. 

 

 

In the latest news, the investor in the Guang Lian steel complex project has unexpectedly asked for permission to reduce investment capital to $2 billion.

The decision was made by E-United, the Taiwanese investor, after JFE, its Japanese partner, announced it would give up the project.

As such, the great efforts made by investors and local authorities over many years have become useless.

The project was initially licensed in 2006 to Chinese Tycoons Group. Later, E-United also became an investor, holding 90 percent of shares.

In 2010, the project implementation was suspended as the investors applied to raise the investment capital to $4.5 billion.

In 2012, JPE, a Japanese investor considered raising the investment capital to $7.5 billion. But it withdrew later. And in the latest move, the investment capital for the project has been lowered to $2 billion, which could presage an unlucky fate.

The Guang Lian project still has not turned into reality over the last 10 years. A large land plot, reserved for project implementation, has been left idle.

Analysts said Guang Lian is not alone. There are many other unimplemented investment projects throughout the country.

A local newspaper quoted sources as saying that over 30 foreign invested projects with registered investment capital of one billion dollars and higher have been licensed. However, the number of operational projects is so modest that “it can be counted on one or two hands”.

The analysts said many projects have had their investment licenses revoked. These include the Ca Na Steel Complex in Ninh Thuan province, capitalized at $9.8 billion; Bai Bien Rong in Quang Nam, $4 billion; Nam Phu Yen Creative City in Phu Yen Province, $1.68 billion; and Wonderland Park in Ba Ria - Vung Tau province.

Meanwhile, other projects remain ‘immobile’, including Nam Hoi An project in Quang Nam province with investment capital of $4 billion, Nhon Trach Berjaya New City, $2 billion; Kobelco Steel in Nghe An Province, $1 billion; Saigon Atlantis Hotel in Ba Ria - Vung Tau, $4.1 billion; and Hai Duong Thermopower, $2.25 billion.

An analyst said it would be very costly to deal with problems caused by canceled projects. The question of how to deal with the 330 hectares of land allocated to the investor remains unanswered, as well as the $73 million the investor has already spent.

Manh Ha