VietNamNet Bridge – Arizona-based First Solar has decided to give up the solar panel project and leave Vietnam. However, it’s still unclear about the fate of its assets, the factory and construction works it build in the country.

Just eight months after the project kicked off, First Solar announced the suspension of the huge project capitalized at $1.2 billion after finding out about the oversupply of the products in the world market. It also hurried to fulfill necessary procedures to leave Vietnam.

However, the presence of the US group in Vietnam still exists, as the 100,000 square meters of built workshops still have not been sold.

The workshops are believed to be “valuable” as they have been built by the German M+W contractor in accordance with international standards.

These include the 107,000 square meters of industrial land which comprises of two production areas, one large logistic area, and one office building covering an area of 6,000 square meters. All the items are located in a 23 hectare land plot.

There is also a 21 hectare land plot with electricity and water supply works which can serve the large scale production.

The US energy group reportedly appointed Cushman & Wakefield Vietnam, a real estate consultancy firm, to sell parts or the whole workshops. However, the work still cannot be done because of the problems in legal procedures.

An official from the HCM City Industrial Zone and Export Processing Zone Board of Management (Hepza) has confirmed that the workshops, located in the Dong Nam Industrial Zone in Cu Chi district, still cannot be transferable due to the legal problems relating to the land laws, though a lot of foreign investors wish to buy the workshops.

The official said Hepza is making every effort to help solve the problems, but he cannot say when exactly the problems can be settled. The best scenario Hepza wants is that the investors to buy the workshops are the high technology firms.

In principle, there are two ways the investor can follow to stop projects. With the first option, it can transfer the project to other partners. If so, the legal status and the business field of the First Solar project would still be valid. The only change to be made is the name of the project investor.

However, analysts believe that it would be very difficult to find a suitable investor who can replace First Solar and implement the project as it was initially designed. This is a high technology project which requires huge investment capital.

With the second option, the investor can leave Vietnam and sells its assets it has developed in the country. However, if choosing this way, the investor will have to follow a series of complicated procedures. Especially, it has to prove the ownership over the assets by showing the “red book” (the certificate on land use right has red cover).

The second scenario could be the choice of the investor. However, as the Hepza’s representative said, the problems with the legal procedures have hindered the sale.

In March 2011, First Solar started the construction of the solar panel factory. In October 2011, it stated the suspension of the project implementation due to the imbalance in the supply and demand in the world market.

In July 2012, First Solar offered to sell workshops.

DNSG