Abandoned $1bn Russian bus plant at risk of closure

“We are waiting for the final decision from the provincial people’s committee,” said Man Ngoc Ly, head of the authority.

Ly said Buscenter Met’s interest in proceeding with the project was in doubt as it had paid nothing for land leasing fees since receiving the investment certificate last April.

The Buscenter Met’s project site covers 50 hectares in Nhon Hoi Economic Zone, Binh Dinh. The investor committed to completing construction within 36 months following the investment certificate. However, 18 months have passed, and this project still exists only on paper.

“We informed Buscenter Met that we would allow other investors to acquire the site if we do not receive rent up until this September. The firm hasn’t done anything so far,” said Ly, explaining why the authority proposed to revoke the project’s investment certificate.

Legally, he said, the provincial people’s committee could revoke the certificate because the firm had failed to implement its commitments.

This has been the biggest foreign direct investment project in Binh Dinh and expected to contribute significantly to the province’s development, help build local support industries, and encourage automakers to expand investment in the country.

“I don’t think Buscenter Met is capable of developing the project. The site should be handed over to other investors that will spur local economic growth,” Ly added.

Located in the central region and bordering Quang Ngai, Phu Yen and the Central Highlands region, Binh Dinh has appeared on the radar of many foreign investors in recent years.

Thailand’s largest oil and gas conglomerate PTT Plc is planning to build a huge $25-$30 billion petrochemical and oil refinery complex in Nhon Hoi Economic Zone. Earlier this month, the Thai company announced that Saudi Arabia’s state-owned oil company Saudi Aramco may team up with it to develop the project.

So far, PTT Plc has submitted a feasibility study to the government, and is awaiting final approval from the prime minister.