Phu Quoc’s delayed projects face the bullet

Le Van Thi, the provincial people’s committee chairman said the province had revoked licences of 51 out of 95 delayed projects, 44 property projects are in line for the chopping block.

“Kien Giang Provincial People’s Committee has just guided Phu Quoc island’s Investment Development Board to work with developers of 44 property projects. We will not revoke licences of developers who have acceptable reasons to delay their projects, but immediately revoke licences of developers who do not have enough financial capacity to continue developing their projects,” said Thi.

Nguyen Thanh Tung, deputy head of Phu Quoc island’s Investment Development Board, said that of the 44 property projects, 15 projects renting forest areas to develop ecological tourism projects were in danger of losing licences.

With five licenced golf-course projects on the island, Tung said at least one could be axed.

“The new large international airport and the road linking the airport to central area of the island are not completed. Some developers were afraid their projects would not be profitable so they delayed their plans,” said Tung.

Tung said some projects had encountered financial difficulties. The local authorities helped some developers with feasible projects to contact BIDV, which has just committed to lend around VND1 trillion ($48 million) for property projects on Phu Quoc island.

With temperate climate, instinct and beautiful beaches and rich natural resources, Phu Quoc island is considered as the gold land for tourism projects. In 2004, after the Vietnamese government approved Phu Quoc’s master plan, hundreds of local and foreign developers rushed to the area to hunt ideal investment opportunities.