VietNamNet Bridge – Experts are blowing the whistle over the high number of projects that have been “pending” for indefinite time.

Many projects were licensed, but few projects implemented

Thua Thien-Hue province is well known as the land of many resort tourism projects.  From 2001 to 2004, a lot of “agile” investors came here and set up projects to reserve land. However, many of them have not made any moves to implement the projects.

According to the Chan May-Lang Co Economic Zone’s Management Board, 35 investment projects in the economic zone have been registered, but only nine projects have become operational, while the other projects have been left untouched. These include the Lap An golf course, the Saigon-Chan May non-tariff and industrial zone, Bai Chuoi tourism complex projects, all projects that received investment licenses from 2006 to 2008.

Meanwhile, other projects have made minimal progress. Diana Resort tourism complex, which was licensed in 2007, is an example. Only a fence and a small house for security guard have been built while the allocated plot of land is still  idle. Only a small embankment has been built for Lang Co coastal resort project, which was licensed in 2006. As for Xanh-Lang tourism complex, licensed in April 2008, only the foundation of the collective guesthouse was built.

According to Nguyen Que, Deputy Head of the Chan May-Lang Co Economic Zone’s Management Board, investors have been delaying the projects because they lack capital. Meanwhile, they cannot borrow money from banks because of the overly high lending interest rates.

While Thua Thien-Hue is taking necessary steps to suspend the investment licenses of some “super projects” and the Ministry of Planning and Investment has requested to verify resort and tourism real estate projects, on November 26, 2010, at a conference on promoting investment in Thua Thien-Hue, held in HCM City, more resort real estate projects were still added onto the list of projects calling for investment. These include Hoi Dua resort (100 hectares), Dien Loc resort tourism complex in Phong Dien district (200 hectares), and Quang Cong-Quang Ngan eco-tourism complex (100 hectares).

Revoking licenses and then calling for investment

Lam Dong province has also been making every effort to “tidy up” tourism real estate projects, especially since the Ministry of Planning and Investment asked to check pending projects.

According to the Lam Dong province’s authorities, in 2006-2010, there were 236 investment projects in the resort sector in Da Lat City and neighboring areas, capitalized at 46.5 trillion dong. 142 projects received investment licenses, but only 65 projects were implemented, 19 of those became operational.

The key tourism area – Tuyen Lam lake in Da Lat City, attracted 30 investment projects, capitalized at 7.5 trillion dong, but to date, only 14 projects have been initiated.

The provincial authorities have found out that  several illegal real estate assignment affairs have been carried out under the mask of investment and ecological tourism developments. The local authorities have sent dispatches to branches, districts and cities of the province, requesting not to allow institutions and individuals to lease forests to develop tourism.

Nevertheless, while taking drastic measures to verify tourism real estate projects, in mid October 2010, the Lam Dong People’s Committee still calls for investment in tourism real estate projects. The list of projects calling for investment capital in 2010-2010 of the province includes 29 big projects, including the Prenn lake tourism complex which is expected to cover an area of 1000 hectares.

Source: Dau tu