Delayed super-project bitter taste

Photo source: Vietnamnet.vn

Last year the project’s kick-off ceremony took place jubilantly at Phong Dien Industrial Park in central Thua Thien Hue province in early January.

It was planned to go on-line after 30 months construction, turning out environmentally-friendly products and using renewable energy sources for power generation to reduce pollution.

But after this grand ceremony, the project has seen no progress. Its construction site is empty with only the remnant of an incomplete warehouse.

While at first the investor rented an office and purchased materials to build a warehouse, after, all the people simply vanished.

According to Doan Vien and wife Le Thi Hai, who live in the area, deputy head of the local project management unit Cao Xuan Hai rented their house for the project office; they lived there in six months, then the investors gradually left until there were none left.

“They still owe us over VND30 million ($1,400) in rental and food expenses,” Vien said.

Similarly, Nguyen Minh Hoang who also lives in the area, said the investor owes him VND15 million ($700) for workers’ wages to build the warehouse.

Le Xuan Luong, an owner of a building material shop, said the project owed him around VND20 million ($950).

Head of Thua Thien Hue Industrial Zone Authority Nguyen Huu Tran attributed Global Sphere’s project delay and disappearance to a cancelled contract with local partner Worldtech.

“In September last year, the authority amended the project’s investment certificate. Worldtech, facing capital distress, was sourcing a new partner for the project. We will urge the investor to pick up the pace,” he said.

Tran added that under current regulations, the project would potentially have its investment certificate revoked if it failed to make progress within a year.

Regarding the owed moneys, Tran said the authority would seek the funds from the investor.