IGS Capital is back with new investment plan

In October the South Korean firm signed a memorandum of understanding with Song Da Infrastructure Construction Joint Stock Company for the lease of 200 hectares in Bac Ninh province’s Yen Phong II industrial park.
The company plans to build workshops and factories for lease and expects construction to finish in late 2012.

IGS Capital’s investment also received in principle approval from Bac Ninh People’s Committee chairman Nguyen Nhan Chien, on October 21.

This is the second time IGS Capital has made a proposal for an investment project in Bac Ninh.
In 2008, this developer got its hands on an investment certificate which would see it building the $240 million Nam Son – Hap Linh industrial park and residential complex in this province. The 600ha includes plans for an industrial park with approximately 250 manufacturing facilities as well as housing and other facilities including an exhibition hall, a logistics centre and a hotel.

Two years later, the firm saw its investment certificate for the project revoked. This was transferred to the domestic Kinh Bac Corporation after the Korean developer told the local authority it did not have the financial capacity to develop the industrial park. And this past history is enough to rattle the nerves of some local officials. “In theory, we welcome every investor coming here seeking investment opportunities. But for an investor which left a bad impression like IGS Capital, we must be more cautious over appraising financial ability,” said Nguyen Dang San, deputy director of Bac Ninh Industrial Parks Management Authority.

Late last week, IGS Capital was yet to submit its application for its investment in Yen Phong II Industrial Park. But San said that even though IGS Capital’s investment plan had received in-principle approval, it did not automatically follow that the developer would receive an investment certificate.

Vu Van Bay, chairman of management board of Song Da Infrastructure Construction Joint Stock Company, said IGS Capital would be responsible for transferring the deposit of $40 million into a Vietinbank account to prove its financial capacity after signing the memorandum of understanding.