Vietnam province to return nearly $11mln to investors over delays

Thanh Nien News

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A signboard of Cam Ranh Bay Cottages, one of the three projects delayed for months in the central province of Khanh Hoa. Photo credit: Tuoi Tre A signboard of Cam Ranh Bay Cottages, one of the three projects delayed for months in the central province of Khanh Hoa. Photo credit: Tuoi Tre

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Authorities in the central province of Khanh Hoa announced Thursday that they will return three Vietnamese investors at least 50 percent of the security deposits they had made, after long delays in site clearance.
The total refunds are estimated at VND250 billion (US$10.97 million), Tuoi Tre newspaper reported.
Ca Tam Tourism JSC will receive 62.5 percent of VND160 billion it submitted in December last year for a resort complex in the north of the Cam Ranh Peninsula, 60 kilometers from Nha Trang.
MB Land, the developer of a resort complex in Cam Ranh, will be refunded VND50 billion, or half of the deposit it paid early this year.
The third investor, Nha Trang Bay Co., Ltd., will be given 66.6 percent of the VND100 billion deposit for a shopping mall in Nha Trang.
It is unclear if the investors, who claim they have incurred losses of more than VND10 billion ($438,800) due to the delays, will continue with their projects.
In 2013 Khanh Hoa Province started requiring developers of projects in Cam Ranh to submit at least VND100 billion ($4.38 million) each in deposits, Nguyen Ngoc Loan, chief of the peninsula's tourist projects management board, was quoted as saying in the province's news website.
It made the move after many investors failed to start their projects, in some cases with delays of up to 10 years, he said.
The rule was applied to Nha Trang in July last year with a deposit requirement of at least 10 percent of the total investment. But it has been reduced to 1-3 percent, in line with the Law on Investment taking effect in July this year.

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