The authorities in the Mekong Delta city of Can Tho said on Tuesday that a local oil refinery project will be revoked if investors fail to prove they have enough capital by the end of June.
The Can Tho Refinery project was initiated in 2004 by US-based Semtech Limited at an estimated cost of US$538 million. However, the investor cut the registered capital to $350 million in July last year, shrinking the project to only 50 hectares from the original 250 hectares.
Semtech decided to pull out of the project completely in November, saying it had financial difficulties. The project was transferred to Vietnam's Vien Dong Investment and Trade Corporation and Hoa Viet Group.
Since then, the project, with a capacity of handling two million tons of crude oil a year, has been delayed and the city authorities said its capital prospects are not promising.