A number of projects licensed in central Quang Nam province are to lose incentives offered to them.

Twenty-one projects lost what are considered excessive investment incentives on June 1, according to Mr. Nguyen Hong Quang, Chief of Office of the Quang Nam People’s Committee.

Projects include the Cat Vang Resort (belonging to the Trading and Consultancy DBC JSC), the Phuoc Thinh marine eco-tourism area (the Phuong Thinh Co. Ltd), a project of the Indochina Resort Residences Co. Ltd in Hoi An, the Con Thi Amusement Park (the Bach Van Trade - Service - Tourism Co. Ltd), the Kim Vinh Resort (the Tourism Service - Construction - Furniture Decoration and Trade Co. Ltd), and the shipbuilding yard belonging to Ha Tien Khoi. All were licensed by Quang Nam before 2005.

Quang Nam acted under Prime Ministerial Decision No. 1387 from December 29, 2005 and Dispatch No. 306 from March 14, 2016 of the Provincial Party Standing Committee, Mr Quang added.

The Prime Ministerial Decision requires cities and provinces under central control to suspend effective regulations on illegal incentives from January 1, 2006.

Cities and provinces, however, have never seriously implemented the Decision. Though Quang Nam has decided to remove excessive incentives promised after 2006, it has been difficult to date for it to address excessive incentives promised for projects licensed before 2005.

Quang Nam sent a dispatch in August to enterprises and the tax office about not receiving land rentals, income tax policies considered excessive, or investment incentives issued prior to June 1, 2016.

On November 1, Quang Nam terminated the investment incentives given to 12 enterprises. 

Total FDI inflows to Quang Nam were reported at $112 million during the first ten months of this year, none of which was in real estate, according to the Quang Nam Department of Planning and Investment. Almost all investment in real estate has been domestic, the department said.

VN Economic Times