Tan Tao Group not enjoying walk in the park

The $13.7 million project is among 11 revoked domestic investment projects in the province during the first half of this year. Tran Van Nhan, director of Quang Ngai Provincial Department of Planning and Investment, said the investment certificate was withdrawn as the construction could not get off the ground since the project was licenced three years ago.

“The developer doesn’t have the financial ability to pursue this project,” said Nhan. He added the provincial authorities did not want Tan Tao Group (ITA) to delay the project’s construction too long as it was impacted not only on local residents, but also on the province’s investment climate.

ITA received the investment certificate for developing the park in 2009, on 157.39 hectares in Duc Pho district and had pledged to finish construction by early this year. “So far, ITA has not done anything on the project. Hence, we will continue calling domestic and foreign firms to invest in the 157.39ha site,” said Nhan.  

ITA asked the local authorities for permission to delay the project for an additional period of time but the province did not approve. This is the second ITA’s project, the investment certificate of which was withdrawn by Quang Ngai Provincial People Committee this year. In June 2010, the local authorities decided to revoke ITA’s film studio project, which the firm registered to develop with the total investment capital of $50 million.

ITA is among the largest private groups in Vietnam. It is operating in many fields of property, power generation, water supply and education. Besides the Pho Phong Industrial Park, the developer is operating eight other industrial parks including Tan Duc, Tan Tao, Kien Luong and Ha Nam. The group is also now working on a giant 4,000 megawatt power project in southern Kien Giang province.

According to Quang Ngai Provincial Department of Planning and Investment, apart from 11 revoked projects registered by domestic investors, the province now has 64 delayed domestic investment projects covering 350ha with total registered investment capital of VND320 billion ($15.2 million).