VietNamNet Bridge – The multi-billion dollar projects were praised as the
prideful achievements of local authorities in foreign direct investment (FDI)
attraction. However, the projects have turned out to be the “pain in the neck.”
Lost in the “casino games”
In March 2013, the information that MGM quitted the Ho Tram resort complex
project stirred up the project. It’s well known to everyone that though MGM is
just the project manager, not the investor, but it plays a very important role
in the project.
The investor might plan to build hotels first and to build a casino later, if
the government of Vietnam allows Vietnamese people to go to casinos as the
investor expected.
However, to date, 5 years after the project was licensed, there has been no sign
showing that the government may change its mind.
A report showed that by the end of 2012, only $350 million had been disbursed to
implement the Ho Tram project out of the total registered capital of $4.2
billion. Analysts believe that if the shareholders cannot hear any “good news”
about the casino project item, they would not pour more money into the project,
because no one would be foolish enough to spend $4.2 billion just to build some
hotels.
The withdrawal of MGM has not only raised worries to the investor, but to the Ba
Ria – Vung Tau provincial authorities, which licensed the project, as well. What
will happen if ACDL, the Ho Tram’s investor, cannot find another partner?
While Ba Ria – Vung Tau authorities feel worried stiff about Ho Tram, Quang Nam
has suffered a headache with Nam Hoi An resort project. With the registered
investment capital of $4 billion, this is the biggest FDI project in the
locality so far.
The withdrawal of Genting, the foreign partner in the Genting Vina joint
venture, has made the other partners puzzled. Like Ho Tram, the problem of the
project lies in the casino investment item.
When asked what Quang Nam authorities would do with Nam Hoi An project, Chair of
Quang Nam province Le Phuoc Thanh simply said: “the negotiations still
continue”.
The Quang Nam provincial authorities once decided to revoke the license granted
in 2010 to Bai Bien Rong project, also a huge project with the registered
investment capital of $4.15 billion.
The slow paced projects
A report showed that over the last 5 years, some 20 projects with the investment
capital of over $1 billion have been licensed. However, only a few of them have
been marching towards as promised, while the others have been going at a snail’s
pace.
Some of the multi-billion dollar projects have seen their licenses revoked.
These included the $9.8 billion Ca Na steel complex in Ninh Thuan province, the
$1.68 billion Nam Phu Yen Creative City and the $1.3 billion The Gioi Ky Dieu
Park.
What will happen with the others? It’ll be not easy for the local authorities to
revoke the licenses granted before to the investors. How will they explain to
the government and competent agencies about the projects’ slow implementation?
It’s still unclear when the investors would kick off their Guang Lian steel
complex in Quang Ngai province, capitalized at $3 billion, the Kobelco $1
billion project in Nghe An province.
A lot of multi-billion dollar projects have been registered, but they prove to
be just the cake pictures shown by the investors.
Yen Thanh