Phu Quoc Island off Kien Giang Province has seen multiple investment projects suspended and no new projects launched in the first six months of 2018, VietnamPlus reported.

A bird’s eye view of Phu Quoc Island off Kien Giang Province 

According to the Phu Quoc Economic Zone Management Board, the island had had 279 investment projects as of June 2018. Of these, 249 projects got granted investment certificates and in-principle approval, with a total area of over 9,000 hectares and registered capital of nearly VND270.5 trillion, whereas the remaining 30 projects are still in the investment registration process.

Thirty-six projects, whose combined investment capital is over VND14.75 trillion, have been put into operation, and 35 projects worth VND95.731 trillion are being implemented. The other projects are working to complete their investment procedures.

It can be seen that among those projects which have obtained investment certificates and approval on Phu Quoc Island, there remain 178 slow-moving projects. VietnamPlus quoted the management board as saying that some 60 projects have finished procedures concerning investment, land and construction, but not yet begun operations.

A reason for the lack of progress is that some projects in the Long Beach area have not finished adjusting their property borders. Those projects have had land sites assigned or leased, but failed to begin construction, as a result of land encroachment and relocation activities.

Other reasons are that many investors are seeking adjustments according to new business plans, poor transport infrastructure, limited financial capabilities of investors and frequent project purchases via capital and stake transfers.

In addition, 34 projects have completed their investment procedures or signed contracts to prepare compensation plans, but have not been approved. This is attributed to the fact that there have been no resettlement areas approved and the deliveries of compensation fees are late.

Also, almost 150 projects are behind schedule in conducting investment procedures for a number of reasons, such as a lack of determination by the investors, prolonged evaluation and approval of detailed plans and environmental impact assessments, as well as stake transfers.

Chairman of Kien Giang Province Pham Vu Hong has told the management board and the island district of Phu Quoc to coordinate with relevant authorities to review investment plans, develop transport infrastructure, and work on waste, wastewater treatment and environmental protection. Further, he urged support for assisting investments and construction of resettlement areas.

Following these instructions, the management board has worked with local authorities to support and speed up site clearance to provide land for investors, as well as to review and handle any violations that slow the progress of investments, map out resettlement plans and consider compensation plans. Projects that fail to ensure continued progress in carrying out plans will be recalled.

To act quickly, the management board has proposed that the government of Kien Giang Province recall a dozen slow-moving projects on this island, as well as review projects which have received in-principle investment approval since 2007, but have not yet been carried out.

SGT