Vietnamese officials have changed their mind and canceled the plan to build a Singapore-style industrial park in the resort town of Phu Quoc in southern Vietnam.
Deputy Prime Minister Hoang Trung Hai last week ordered the Ministry of Planning and Investment to inform Singapore of the new decision, but did not specify why, Thoi Bao Kinh Te Sai Gon (Saigon Times) reported.
Early last year, Kien Giang Province's government tasked Becamex IDC – an investment and development enterprise which models on Singapore’s Temasek Holdings – with conducting a feasibility study for the Vietnam-Singapore Industrial Park (VSIP) in Phu Quoc.
The VSIP, which will focus on hi-tech and environment-friendly industries, is expected to cover around 3,000 hectares (7,414 acres).
The planned project received mostly negative reviews.
Experts said Phu Quoc is only suitable for tourism and services development, and that it is hard to find the human resources for hi-tech industries there.
Phu Quoc, the largest island in Vietnam, has the total area of 593 square meters.
Under a master project for economic and social development of Kien Giang, Phu Quoc will be built into a special economic and administrative zone by 2020.
Other Vietnam-Singapore Industrial Parks are currently operating in the northern province of Bac Ninh, the northern port city of Hai Phong, the central province of Quang Ngai and Binh Duong Province, which neighbors Ho Chi Minh City.