FDI projects in Dong Nai see licences withdrawn

November 26, 2012 | 09:00

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Nine foreign direct investment (FDI) projects in the southern province of Dong Nai have had their investment certificates revoked and another 17 FDI projects are facing withdrawals due to financial problems.

Dong Nai Provincial People’s Committee withdrew the certificates of nine FDI projects with registered investment of $72.09 million in the first 10 months of 2012.

The withdrawal was attributed to a 12-month project delays related to the gloomy economic situation and financial difficulties faced by investors.

Moreover, a representative of Dong Nai Provincial Industrial Parks Management Authority (Diza) told VIR that it currently suggested a withdrawal list of 17 FDI projects valued at $79.484 million due to financial problems resulting in debt disputes and shut downs.

Most of these projects already are in the process of liquidation, bankruptcy and selling their factories. In ten cases, the investors have left the country.

The biggest of these failed projects is the $26.95 million chemical production plant of Korea-funded Green Chemical Co., Ltd in Loteco IP. The company stopped its operation in May 2010 and faces lawsuit from the Bank for Investment and Development of Vietnam (BIDV). All its factory and assets have been auctioned.

Most other projects facing difficulties—including 12 among the withdrawal list suggested by Diza--are valued at less than $4 million each.

There are 10 project investors in withdrawal list who Dong Nai authorities have been unable to contact as they escaped to their homelands.