VietNamNet Bridge - Dau Tu newspaper last week reported that Compal’s plan on reviving the $500 million project in Ba Thien Industrial Zone (IZ) in Vinh Phuc province has not started, and the fate of the factory remains unclear.

From March to June, Bruce Riggs, Compal’s deputy CEO, visited Vinh Phuc province where he had a working session with Vietnamese agencies and said that the investor needs to improve the production line of the laptop factory to be able to shift to make smartphones.

Three months later, Vincent Lee, deputy CEO of Compal Vietnam, once again met Vinh Phuc’s leaders and affirmed that Compal was nearly completing negotiations with partners and planning to install production lines and recruit workers to get ready for the operation.

However, to date, no progress has been made, while information about the US partner Compal has not been made public.

Nguyen Duc Tai, deputy director of the Vinh Phuc provincial Planning and Investment Department told Dat Viet’s reporters: “The information is not entirely accurate. Some projects in Ba Thien IZ have become operational, but there are problems in efficiency and investment."

To date, no progress has been made, while information about the US partner Compal has not been made public.

He said that the provincial IZ Management Board has full information about the project.

When reporters contacted the Vinh Phuc provincial IZ Management Board, the board’s Nguyen Cong Thang said that the board had not received any version of the plan to revive the $500 million project in Ba Thien IZ from Compal. 

He affirmed that no investor had made a proposal to adjust the project and resume implementation.

When asked why Compal repeatedly made promises, Thang said Compal had asked about necessary procedures to adjust the project, but local authorities still had not received official documents.

The official went on to say that he once contacted Compal in Vietnam and he was informed that Compal would prepare necessary documents, but the documents were not ready.

“We will strictly follow the laws and will take action in case the investor makes promises in vain,” he said.

However, he also said that it would be better for Vietnam to wait for some time. “Let’s try to believe the investor."

Not only Compal, in Vinh Phuc province, Foxconn also once promised to invest $5 billion in Vietnam, including Vinh Phuc. But it has only carried out two small projects in Bac Ninh and Bac Giang provinces.

Dat Viet