Provincial
authorities are getting tough on long-delayed foreign-invested projects as
Vietnam strives to boost the quality of its foreign direct investment inflows.
Bac Giang People’s Committee told the Ministry of Planning and Investment
(MPI) in March that it was determined to withdraw the investment certificate of
investors who intentionally delayed investment commitments.
In its report to the MPI, the provincial committee said it would urge
Taiwan’s Foxconn to construct the Van Trung Industrial Park, which was granted
investment certificate in 2007. Other provinces including Binh Dinh, Quang Nam,
Quang Ninh, Binh Phuoc, Phu Yen and Danang also told the MPI they planned to
revoke the investment certificates of projects that had fallen behind schedule.
The reports come in response to a direction from Prime Minister Nguyen
Tan Dung telling ministerial bodies and local authorities to tighten up
management of foreign direct investment (FDI). Vietnam’s provincial authorities
haven’t always been shy about withdrawing investment certificates in recent
years.
Quang Nam province withdrew licences for eight foreign-invested
projects worth about $108 million last year and Bac Ninh did likewise for 16
long-delayed projects with total investment capital of $47.64 million. But,
provincial authorities report there are still many delayed projects in these
provinces.
The new reports from the provinces, however, imply that local
authorities will use their rights to reject FDI projects and ensure the quality
of foreign investment flowing into Vietnam. Tran Van Tri, director of Quang Nam
Department of Planning and Investment, said many foreign investors were meeting
difficulties in mobilising funds or finding partners to sell projects.
“These projects are negatively affecting lives of residents and
economic development of the province,” said Tri.
Nguyen Van Dung, deputy director at Binh Dinh Department of Planning
and Investment, said the rejection of delayed FDI projects would not impact on
the investment climate. In return, he said, the provincial authorities would
create more opportunities for new investors. In Binh Dinh, four projects had
investment certificates revoked last year.
The provincial committee also urged foreign investors to start the
construction of other projects, including the $250 million Vinh Hoi resort and
the $1.7 billion Vung Ro oil refinery.
Nhu Ngoc | vir.com.vn
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