Clouds gather as Global Sphere quits solar project

illustration photo

Nguyen Trong Nguyen, general manager of Global Sphere in Vietnam, told VIR that the company was longer involved in the solar panel manufacturing project in Thua Thien-Hue province, adding that the company’s decision had been passed on to its Vietnamese partner.

“We withdrew because our Vietnamese partner [WorldTech Transfer Investment] didn’t have the financial capacity. We found out about some non-transparent transactions between WorldTech Transfer Investment and some banks,” said Nguyen.

Instead of investing in the manufacturing project in Thua Thien-Hue, Nguyen said Global Sphere was in discussions about another project in Ho Chi Minh City. He refused to go into more detail.

Global Sphere and WorldTech Transfer Investment received an investment certificate for building a solar panel manufacturing plant in Thua Thien-Hue at the end of last year. Global Sphere would be responsible for 100 per cent of investment capital while Worldtech would be responsible for building, managing and controlling the plant.

The solar energy project, located in Phong Dien Industrial Park, was to be divided into two phases. The $300 million first phase was scheduled to start construction late this year and would have started production in May 2015. 

Following Global Sphere’s withdrawal, the project’s future is now in question. Almost a year after the ground breaking ceremony, the project remains consigned to paper.

“We learnt that there was debate between Global Sphere and WorldTech Transfer Investment, but the investors have not yet officially informed us whether they will follow through with the project or not,” said an anonymous official at Thua Thien-Hue’s Department of Planning and Investment.

This solar panel project is the third of its kind that has been granted an investment certificate in Vietnam. None of two others, a $1.2 billion project in Ho Chi Minh City and a $390 million project in Quang Nam province, have been built so far because of low global demand.