Together with relatively strong growth rate of the tourism sector, tourism projects in favourable locations in central provinces of Vietnam quickly have been approved. However, many projects of these are being implemented at a very slow pace, which leads to a waste of tourism resources and badly affects the investment environment.
Many approvals granted, few projects implemented
When talking about tourism projects in Khanh Hoa, it is worth mentioning projects in Cam Ranh Northern peninsula tourism area. This area is expected to give strength to the tourism sector of Nha Trang city. However, this project is being implemented at a snail’s pace.
In early 2004, this project got approved by Khanh Hoa People’s Committee. Over 50 investors then registered to participate in the project. So as to create favourable conditions for investors to boost the pace of the project, Khanh Hoa People’s Committee instructed its local authorities to meet requirements on infrastructure system. However, contrary to preferential treatment of the People’s Committee, investors got the project implemented too slowly. In 2007, over 20 projects of investors with weak finance status were withdrawn. With a view to binding investors with such projects and raising their responsibility, the People’s Committee requests them to make advanced payment for land rental fee. Nearly 30 enterprises make payment for land renting but there is not much improvement made to project schedules.
Currently, 31 projects are still valid in the project of Cam Ranh Northern peninsula tourism area. Only three projects have been started, the rest of which are still pending.
It can be said that the breaking of land in Cam Ranh Northern peninsula tourism area into smaller plots for investors to register for investment but to implement their projects at a slow pace has caused a big waste and exerted bad influence on the investment environment in Khanh Hoa.
Will projects at a snail’s pace ever reach target?
In Danang, heaps of projects at favourable location in the city centre and along the coastline have been pending for such a long time. The investment project of mix-used Bai But Bay Resort of Hai Duy JSC with initial capital exceeding US$230 million still stops at a line of coconuts surrounding the project area and a swimming pool right at the centre, surrounded by trees and bushes, etc. after seven years since the ground-breaking ceremony.
Five years ago, Hung Vuong road (in Danang) was considered the life-line of the city due to its central location. In early 2008, there were two huge projects being started along this road, including Danang Center (with Vu Chau Long JSC being the Employer) and Vien Dong Meridian (with Vien Dong Real Estate JSC being the Employer).
The ground-breaking ceremonies were jubilant with lion dances but just after one year, the project sites turned into pools of water where mosquitoes house during rainy season.
Given this context, Danang City People’s Committee provides instruction on reviewing investment projects implemented on the area. There are 11 projects which have got land delivered for more than three years but Employers have not got such projects implemented. There are nine other projects being implemented but at a very slow pace. Thua Thien Hue and Quang Nam also have projects at similar status.
Tourism in the Central region is evaluated to be very potential but is lacking real investors. (SGGP)
Vietnamese
