Phu Quoc scraps delayed projects

The province will revoke 54 projects, including the $1 billion high-grade US-based Rockingham Asset Management tourism complex and a resort project of Tan Tao Group, one of Vietnam largest private enterprises.

Meanwhile, the committee said it could reject other 41 projects in Phu Quoc if developers failed to meet some development criteria and developers could not prove their financial ability to develop the projects.

The decision follows a Government Inspectorate of Vietnam proposal for withdrawing 95 projects in the province after it inspected land usage in Kien Giang early this month. The provincial leaders’ decisive move shows their determination to improve the island’s investment climate in Phu Quoc island.

“We want to curtail non-serious developers of their investment projects,” said Van Ha Phong, Chairman of Phu Quoc Island People’s Committee and also head of Phu Quoc Development and Investment Management Authority.

Phong said most revoked projects were still on the paper so the revocation process would not take a long time. “They [developers] just registered to invest here to occupy a site, but did nothing to develop projects,” he added.

Phu Quoc island, 120 kilometres off Kien Giang province, is the largest island in Vietnam. The government wants to make it one of the most attractive destinations for developers to promote  the tourism sector there, with 75 projects already granted investment certificates.

The projects capitalised at around $2.2 billion, covering nearly 4,000 hectares. Furthermore, the provincial authorities  also gave in-principle approval to 180 other projects  in Phu Quoc, making this island cramped. However, the revocation of investment approvals will give more chances for late-comers and serves as a warning for other developers dragging the chain.

“For the projects appropriate to the island development plan, we will call for new developers to replace the rejected ones,” said Phong. In related news, according to the provincial people’s committee, Southern Airports Corporation, the investor of Phu Quoc international airport project, has agreed to put the airport into operation in December after nearly four years of upgrading and building some new utilities for the airport.  The airport can handle three million passengers each year.