Can Tho resolves to push forward investment projects

Can Tho city

One of the longest and biggest delayed projects in the city is the Can Tho international university village and Hoang Quan Can Tho urban area developed by Hoang Quan Can Tho Real Estate JSC.

The project saw its investment proposal ratified by the city’s People’s Committee in early 2009.

The project initially envisaged 164 hectares for the urban area, 102 hectares for the university and a 53 hectare resettlement area.

But since receiving approval, the developer has yet to do anything related to compensating and supporting the affected citizens to relocate.

Last year the Can Tho Department of Planning and Investment worked regularly with state agencies to review the project’s progress and required the developer to commit to a pace and implementation timeline as well as pay deposits (equal to 5 per cent of the cost for compensation and resettlement), as regulated by law.

According to Bui Ngoc Vy, deputy head of the department, the project developer has now proposed to change the urban area plan to housing blocks for low-income people. The plans for the university have stayed the same.

“The city’s Department of Planning and Investment is working with the project developer, asking them to prove financial capability and again commit to a timetable that can be reviewed and potentially approved by authorities,” said Vy.

Another project, the $538 million Can Tho oil refinery, has an annual production capacity of two million tonnes of much needed refined products. But six years after being licensed, it has seen no progress and has changed joint venture partners four times.

In its most recent move, the project and JV partner proposed downsizing the scale to $350 million.

The Department of Planning and Investment has similarly asked the developer to prove its financial capability, pay the 5 per cent deposit against compensation and resettlement, and make a progress commitment.

A 400 hectare infrastructure project for Hung Phu 1, Hung Phu 2A and Hung Phu 2B industrial parks (IPs) has been in the pipeline for nearly a decade and has seen little progress.

Its delays are attributed to changes to compensation policies and the IPs’ close proximity to the city centre, making compensation quite costly.

Reportedly the investor would have to pay $80-$90 per square metre, which would in turn drive up leasing costs and make it difficult to lease.

Meanwhile, leasing rates in neighbouring localities – Hau Giang and Vinh Long, are very competitive due to their low input costs.

This was the reason developer Can Tho IP Infrastructure Construction Company Limited pulled out of the Hung Phu 2B IP.

Chairman of Can Tho’s People’s Committee Le Hung Dung said that city authorities have continuously supported investors to work out procedures and regulations but that “Long delayed projects have a major impact on the lives of people who live on project sites. Projects that do not move forward with be strongly sanctioned.”