Local authorities in the central province of Ha Tinh believes
that a new investment wave in Vung Ang Economic Zone can save many firms from
Vice chairman of Ha Tinh
Provincial People's Committee, Duong Tat Thang, who is tasked with managing
the Vung Ang Economic Zone, talked with Dan Tri/DTiNews about the
problems on March 12.
Vice chairman of Ha Tinh
Provincial People's Committee, Duong Tat Thang, (left) talked with Dan
Tri/DTiNews reporter on March 12.
Thang confirmed that
investors and firms in Vung Ang are facing many difficulties, which he said
is now among the most concerned matters of leaders of the province.
The vice chairman pointed out four causes leading to these difficulties.
The first cause relates to the Formosa Company which is the largest firm in
Vung Ang with many projects including steel, ports and thermoelectric power
plant ending the first phase. When these contractors left, firms operating in
construction materials, transportation, and accommodation services here have
all lost their partners and will be heavily affected.
An entertainment centre has to close in
The second cause, which also relates to Formosa, is the environmental
disaster which occurred last April. Formosa had to stop nearly all their
activities to solve the problems, leading to the leaving of many investors.
The third cause is the vast investment without careful consideration.
"There has been a big investment wave in Vung Ang with trillions of VND
from the state budget and billions of USD from domestic and foreign investors
being poured to the zone," Thang explained, adding that many investors
had just followed one another and only sought short-term benefits without
seeing the potential risks.
Talking about the last cause, Thang admitted responsibilities of the local
authorities when approving too many investors which led to unhealthy competition.
"Many quarrying companies are facing bankruptcy due to our approving of
nearly 60 licences at the same time," Thang admitted. "They have
had to face rising competition due to falling demand."
Second investment wave needed
Ang Economic Zone
Thang, Vung Ang Economic Zone needs a second investment wave to rescue the
firms here besides suitable supporting policies from local government.
"There is still big investment potential in Vung Ang," Thang noted.
"With a total area of 700 hectares in addition to many ports and other
infrastructure being planned, we can still hope for new investors."
The official admitted that it could be a hard job attracting more investment
at this time after the Formosa disaster but they will try.
"We're co-operating with the Ministry of Natural Resources and
Environment to and other agencies to solve the environmental consequences
left by the Formosa Company," he said. "In the meantime, we're
trying to improve our investment environment here so as to attract new
investors which can help us reduce our dependence on Formosa."
According to the management board of Vung Ang Economic Zone, to date, the
zone has attracted 29 projects; but, up to nine of them have their investment
licences revoked, including four foreign-invested projects due to the long
delay or ineffective operations.
Three other projects in the zone with a total investment of millions of US
dollars will have their investment licences withdrawn, including two
foreign-invested firms due to stagnant or poor performance.