SHTP finally gets tough on delayed projects

Taiwan-funded Internet New City targets a multi-building complex with underground parking, conference rooms, leasing offices, exhibition halls and other amenities. The project got a licence from Saigon Hi-Tech Park (SHTP) Management Authority late 2007, started its construction in June 2009 due to financial distress but could not continue after all.

Singapore-funded fibre cable manufacturing plant invested by Vien Lien has also been cut off.
Three local projects that lost investment certificates include built-in factory invested by SHTP Development, TMA research and development centre of Tuong Minh Research & Development  and the bonded warehouse project invested by Transforwarding Warehousing (Transimex Saigon).

“The projects in SHTP often have licences withdrawn after two years without implementation,” said Le Bich Loan, vice director of SHTP Management Authority. According to regulations, the licenced projects in SHTP have to start its construction within 12 months. The investors can enjoy a six-month grace period with suitable reasons approved by SHTP Management Authority.

Loan said the park authority would continue reviewing and withdrawing investment certificates of delayed projects to give chance for new feasible ones.  

Some projects in list of withdrawal in the coming time includes Elcom’s research and development center and Vina Corporation’s Vinagame Software Service.

Many investors have explored SHTP for project locations but the 300ha phase one was nearly fulfilled, while the 600ha phase two is still waiting for funds approved by  Ho Chi Minh City People’s Committee.

According to Le Hoai Quoc, director of SHTP Management Authority, about 10 investors are on the waiting list for locations in SHTP,  including some big FDI projects.