Taiwanese firms rapped for sluggish developments

photo source:vinhphuc.vn

In documents released last week, Vinh Phuc People’s Committee stated that the two firms had illegally extended their project timelines several times after being afforded several previous extensions and despite the committee completing site clearance and other responsibilities.

The documents summarised comments made by the committee’s Chairman Phung Quang Hung at a meeting in May between representatives of the Ministry of Planning and Investment and the Hanoi-based Taipei Economic and Cultural Office and provincial leaders.

Local authorities stressed that delays to the projects had stirred up public outcry as they had “adversely affected” the lives of relocated residents. Meanwhile, the province had expected major socio-economic gains from these projects.

In 2007, Compal was licensed to build a $500 million laptop manufacturing facility and 100 hectare Ba Thien industrial park. While the factory was completed and projected to begin operating in 2009, it failed to open and infrastructure for the industrial park remains in its infancy.

Foxconn, also accused of illegal delays, was licensed to build a $200 million handset factory and 485 hectare industrial park also in Vinh Phuc. Foxconn made no progress on its project and failed to even send representatives to the province or transfer the registered capital to its subsidiary.

Chairman Hung required that both companies meet with the committee before June 30 to explain the delays and resume construction on the industrial park projects no later than October 31.

However, when VIR contacted director of Vinh Phuc Industrial Park Management Authority Nguyen Cong Loc, he refused to comment on whether either company had done so by June 30.

The provincial committee announced that if either company continued failing to meet its requirements, they would lose

their licenses, paving the way for other investors.