A Chinese contractor at a fertilizer factory in the northern city of Hai Phong has been fined US$6 million for violating its $172 million contract.
The Vietnam National Chemical Group (Vinachem) factory investor, DAP, Ltd., said that the Chinese contractor EPC had agreed to pay the fine.
According to DAP, the contractor has been dragging behind schedule and manufacturing products with lower quality and higher energy costs than agreed.
EPC has failed to pay sub-contractors on time, and is holding back operations, DAP said.
The factory officially opened recently after more than two years of trial operations. It is expected to provide around 330,000 tons of products to the domestic market every year.