Ha Tinh targets Vung Ang Economic Zone investment 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 bankruptcy.  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 Vung Ang 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   Vung Ang Economic Zone According to 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. Dantrinews