>> FDI headaches as Government forced to revoke certificates
Many mammoth foreign direct investment (FDI) projects had their investment licenses revoked in 2010 which is seen as a warning for investors.
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One of the petrochemical complex projects in Van Phong Economic Zone in Khanh Hoa |
The revocations were also considered a base for Vietnamese agencies to appraise the quality of FDI projects.
STX Vina industrial complex: Investment from South Korea’s STX Group in central Khanh Hoa Province
This is the biggest among FDI projects in the Van Phong Economic Zone.
Licensed on January 22, 2008, the 100-ha STX Vina complex has a total investment of USD500 million. It is designed to build container ships, big oil tanks and manufacture off-shore petroleum production equipment and many other capabilities.
Khanh Hoa Province almost finished site clearance and road construction for the project; however, STX asked for extension. After a time of delay but without any progress from the investor, the provincial authority decided to recall the project’s license.
AJ Vietstar project worth USD200 million in Ba Ria-Vung Tau Province
In February 2009, South Korea’s AJ Vietstar Company received an investment license from southern Ba Ria-Vung Tau Province to carry out the USD200-million AJ Vietstar project.
However, in August 2010, the provincial People’s Committee decided to withdraw the project’s license due to the investor’s weak financial capacity.
Bai Bien Rong (Dragon Beach) Eco-tourism Resort in Dien Ban District, central Quang Nam Province
Licensed in September 2009, the USD4.15-billion project by the US’s Tano Capital LLC and Global C&D is considered the biggest project in central Vietnam. The 400-ha project, which will include parks, upper-end hotels, international conference centres, trade centres and luxury villas, was scheduled to start this year and finish in 2019. Nevertheless, the investors have failed to ensure its commitment.
A number of other FDI projects have withdrawn licenses include the U.S. Pegasus Fund high-class sea eco-tourism project and Canada\'s Que-Viet tourism project, both in Quang Nam Province.
DELAYED PROJECTS:
USD9.8-billion Ca Na steel complex project in central Ninh Thuan Province
Ca Na steel complex project, with an initial investment capital of USD9.8-billion, is facing very sluggish implementation. The province considered selecting another investor to replace Maju Stabil SDN Company under Malaysia’s Lion Group for implementing the project.
Although the extension ended in mid-2010, Maju Stabil SDN Company has not resumed the project.
USD16-billion steel project in Vung Ang Economic Zone in Ha Tinh Province
The Son Duong sea port and steel complex project by Taiwan’s Formosa Group is seen as the biggest FDI project in Vietnam. The investor got the investment license in June 2008, just three months after the project was approved. This is the fastest-ever licensing in Vietnam to date. Kicked off on July 6, 2008, construction of the project is still moving extremely slow due to stagnant site clearance.
Recently, Formosa asked Vietnamese ministries and agencies for special mechanisms to support its capital mobilisation.
Guang Lian steel mill in Dung Quat Economic Zone in central Quang Ngai Province
Licensed in 2006, the project has been taken over by four different investors. However, the project is still moving at a slow pace. Capacity of the 478-ha factory was raised to 7 million tonnes of products per year from 5 million tonnes.