Vinashin park plan is set to be torpedoed

Vinashin’s South Cam Ranh Industrial Park is set to be torpedoed by Khanh Hoa Provincial  People’s Committee.

In a document recently sent to the Ministry of Planning and Investment (MPI), the provincial committee said it wished to kill the project because Nha Trang Shipbuilding Industry Company, a subsidiary of state-run Vinashin, did not have the financial resources to undertake the project.

“The delay has been causing negative impacts on the local socio-economic development,” the committee said in the document, adding that it wanted to seek new developer to replace Nha Trang Shipbuilding Industry Company.

The park, to cover 203.4 hectares in the central province’s Van Phong Economic Zone, was granted an investment certificate in March 2009. Nha Trang Shipbuilding Industry Company planned to pump VND980 billion, or $47.1 million at current exchange rate, into this project.

A year ago, Khanh Hoa Provincial People’s Committee allowed Van Phong Economic Zone Management Authority to withdraw investment certificate of this project. However, the prime minister said the developer should have time to get its act together.

But, Vinashin’s woes are straining the committee’s patience.

“This project is a non-core business of Vinashin. while the industrial park will not serve the shipbuilding industry. So once the developer has financial difficulty and could not pursue this investment, it needs to call for new developers to replace,” it said.

South Cam Ranh is among three industrial parks licenced in the zone. Suoi Dau and Ninh Thuy have been operational and attracted 54 projects worth $306 million.

At present, Japan’s Sumitomo is preparing for building a thermal power plant in Van Phong and South Korea’s Dealim Group is going to complete the feasibility study of developing an oil refinery and petrochemical plant there. Belgium’s Rent-A-Port also plans to build a logistic hub in Van Phong.