Why is there a delay?

With investment capital ranging from approximately one trillion to several trillion VND, key direct investment projects are expected to create breakthroughs in economic growth, product and service structure, and budget revenue, enabling Thanh Hoa to achieve its planned development goals sooner. However, due to various objective and subjective reasons, many large-scale projects are currently behind schedule, failing to fully utilize land resources and achieve production and business efficiency.

The Flamingo Linh Truong Eco-tourism and Resort Area - Zone A in Hoang Hoa district, owned by Flamingo Hai Tien Co., Ltd., is one of the province's key, large-scale direct investment projects.

Numerous projects failed to meet deadlines!

The Tan Dan Eco-tourism Area project (Nghi Son town), invested by T&T Group, covers an area of ​​84.8 hectares with an initial investment of approximately VND 3,663 billion. Construction began in June 2021. With its large scale and reputable investor, the project is expected to transform the advantages of the forest and sea in Nghi Son into a resort and entertainment destination for domestic residents, international tourists, and foreign experts living and working in the Nghi Son Economic Zone. At the time of commencement, the investor aimed for the project to be operational by May 2024. However, currently, only 40% of the project has been completed. In August 2024, the Provincial People's Committee decided to approve the adjustment of the investment plan for this project, increasing the capital to 11,096 billion VND, and simultaneously "extending" the deadline for putting it into operation and exploitation to 2026.

Also in the Nghi Son Economic Zone, the Nghi Son Steel Mill Project No. 2 (lines 3 and 4) was started by VAS Nghi Son Group Joint Stock Company in January 2022. With a capacity of 3 million tons/year and a total investment of nearly 8,000 billion VND, this project, using the most modern DANIELI steel technology from Italy, aims to supply the market with 3 million tons of steel billets and 1.5 million tons of rolled steel annually. This will help increase the province's budget revenue by hundreds of billions of VND, contributing to affirming the Nghi Son steel brand and ensuring the synchronized operation of the Nghi Son Iron and Steel Complex. However, the goal of putting the first line of the plant into operation in 2023 was not achieved on schedule.

According to a review by the Department of Planning and Investment, 23 large-scale, key direct investment projects currently under review have a total investment of approximately VND 74,208 billion. Of these, 7 projects commenced before 2021 with a total investment of VND 25,681 billion, and 16 projects commenced between 2021 and 2024 with a total investment of VND 48,527 billion. However, only one project has commenced operation in November 2023: the DABACO Thanh Hoa high-tech pig breeding and commercial farming area in Thach Tuong and Thach Lam communes, Thach Thanh district, invested by DABACO Vietnam Group Joint Stock Company with a budget of VND 654 billion.

Of the 22 ongoing investment and construction projects, only 6 are on schedule. These include the Dai Duong Cement Plant in the Nghi Son Economic Zone and the Radial Tire Factory in Zone B of the Bim Son Industrial Park, currently undergoing trial runs to fine-tune machinery for official operation. The Miza Nghi Son Packaging Paper Factory - Phase 2 has received land allocation and is completing the necessary paperwork and procedures for project commencement. The textile factory in the Thai Thang Industrial Cluster (Hoang Hoa) has basically completed the construction of its workshops; the export footwear processing factory in the Van Ha Industrial Cluster (Thieu Hoa) has completed the construction of 2 workshops, with the remaining 2 under construction, reaching an estimated 90% completion rate. The Sao Mai Thanh Hoa Resort in Tho Lam commune (Tho Xuan) is under construction, reaching an estimated 83% completion rate.

Sixteen other large-scale, key projects are assessed to be behind schedule compared to the approved investment policy and investment registration certificate. These include many projects that were once highly anticipated in various sectors from industry and agriculture to trade, tourism, and services, such as: Intco Medical Vietnam factory in North Zone A, Bim Son Industrial Park (Bim Son town) with an investment of VND 2,796 billion; the hot spring resort urban area in Quang Yen commune (Quang Xuong district) with VND 6,849 billion; the Xuan Thien Thanh Hoa 1 high-tech production and livestock complex in Minh Tien commune (Ngoc Lac district) with VND 3,000 billion; Long Son General Port with VND 2,300 billion; and the large-scale industrial dairy farming and processing project in Nong Cong and Nhu Thanh districts with VND 3,800 billion...

Speaking at the recent 37th Provincial Party Committee Executive Conference, along with suggestions for effective solutions to promote the attraction of business resources into production and business, many delegates expressed concern about the slow progress of many projects. Although the province's budget revenue in 2024 reached its highest level ever, revenue still depends mainly on value-added tax from crude oil imports and land use fees. If new projects are slow to come into operation, it will be difficult to create more room to consolidate sustainable budget growth in the future.

“Many large investment projects that received investment approval have been delayed in commencement or construction progress. Especially in the trade and tourism sector, although we have attracted some projects from well-known investors, most projects have not been put into operation on schedule. Therefore, Thanh Hoa has not yet developed high-quality tourism infrastructure to attract luxury tourists, stimulate tourism demand, and create a breakthrough in revenue,” said Luong Tat Thang, Secretary of the Sam Son City Party Committee.

Many reasons

Among the many reasons cited for project delays, land clearance remains one of the top causes. Of the 23 large-scale, key projects currently experiencing delays, 11 are attributed to difficulties and obstacles in land clearance. Typical examples include the Long Son Cement Plant's Line 4 in Dong Son ward (Bim Son town), where 3 hectares remain uncleared due to unresolved agreements with local residents; the Tan Dan Eco-tourism Area in Tan Dan ward (Nghi Son town), with 7.28 hectares still uncleared; the Xuan Thien Thanh Hoa 1 High-Tech Production and Livestock Complex in Minh Tien commune (Ngoc Lac district), with 17 hectares still uncleared; and the East Urban Area along the North-South Boulevard (Thanh Hoa City), facing difficulties with over 1 hectare of land yet to be acquired.

According to the Land Clearance and Resettlement Support Board of Nghi Son town, from the very beginning of its implementation, the Tan Dan Eco-tourism Area has faced several difficulties due to issues related to land origin, land use timing, land type, etc. Some agricultural land areas have been subject to land acquisition decisions issued by the People's Committee of Nghi Son town, but do not meet the conditions for compensation and support because the cadastral map currently shows them as transportation land, irrigation land, cemetery land, or uncultivated water surface. In addition, some households disagree with the compensation rates for land and assets on the land and request the investor to negotiate. Currently, the adjustment of legal regulations on land when the 2024 Land Law and its decrees come into effect is also causing confusion for the investor in implementing the next steps of the project.

Line 3 of the Nghi Son No. 2 Steel Rolling Mill has had its equipment installed since August 2022 and is currently awaiting power connection for trial operation in December 2024.

According to the Department of Planning and Investment, the main reason for land clearance difficulties is the lack of supporting documents and data, hindering the development of land clearance plans. In addition, the slow progress in the construction of some resettlement areas also affects the land clearance progress of the project; coordination between relevant units and the time taken to process compensation and land clearance documents are sometimes untimely and ineffective; most investment and business projects in the province use agricultural land, and investors must carry out land clearance compensation through self-negotiation, land use right transfer, capital contribution, or land use right lease with land users, thus creating many difficulties and causing investors to delay completing land use documents.

Along with the GPMB (General Planning and Investment Project), the slow progress of some projects is also due to the lengthy process of completing documents and procedures caused by overlapping and frequently changing legal regulations, such as laws on investment, land, construction, environmental protection, housing and real estate business, bidding, management and use of public assets, and state capital management. Some large-scale, key projects have procedures and documents that must be submitted to central ministries and agencies, leading to prolonged implementation times, typical examples being: Long Son General Port; Container Terminal 2 at the Nghi Son Economic Zone; the household waste incineration power plant in Dong Son ward (Bim Son town); Intco Medical Vietnam factory in North Zone A, Bim Son Industrial Park; and large-scale industrial dairy farming and milk processing in Nong Cong and Nhu Thanh districts. Some projects are still awaiting implementation guidelines, such as the Nam Song Ma Resort and Amusement Park in Quang Chau and Quang Tien wards (Sam Son), which is a reciprocal project for a public-private partnership (BT contract) investment project and therefore must be implemented according to the principle of equal value. However, currently, determining the expected land price at the time of land allocation and lease, as a basis for further land allocation to pay for the BT project, still faces many obstacles, leading to the inability to continue allocating land for investment and construction of the project...

There are also projects where delays stem from the lack of timely infrastructure development. For example, at the Nghi Son Steel Rolling Mill No. 2, the investor had completed equipment installation in early August 2022, ready for trial operation. However, the 220KV power line and substation project in the Nghi Son Economic Zone, invested by the National Power Transmission Corporation, and the 110KV power line project supplying electricity to the 110KV substation at the Nghi Son Steel Rolling Mill No. 2 were delayed, resulting in a lack of electricity for the first phase of the project. Therefore, the investor also adjusted and extended the installation time for line 4 to match the power commissioning schedule and the time when the lines would be put into commercial production.

Mr. Pham Tuan Anh, representative of VAS Nghi Son Group Joint Stock Company, shared: “At the end of October, after the difficulties regarding land clearance were resolved, the National Power Transmission Corporation quickly organized the construction and energization of the 220KV Nghi Son Economic Zone substation and connecting power lines. We are waiting for the power sector to complete the technical stages and connect the power to the plant so that we can operate line 3 in December 2024. After stable trial operation and necessary adjustments, we will put the plant into commercial operation in the first quarter of 2025. When line 3 is operating stably, the company will continue to invest in building line 4.”

Besides objective reasons, subjective factors cannot be ignored, such as the irresponsibility or incompetence of some investors leading to project delays. For example, the hot spring resort urban area in Quang Yen commune (Quang Xuong district) is behind schedule, with only 20% of the work completed and a large amount of land clearance work remaining. Currently, the investor has not been able to allocate advance funds for compensation and support to cover land clearance costs for affected households, significantly impacting the project's progress. The projects: the East North-South Boulevard urban area (Thanh Hoa City); and the waste-to-energy plant in Dong Son ward (Bim Son town) are in a similar situation. In particular, some projects face multiple challenges that make completion difficult, even after adjustments and extensions to the schedule.

In the field of foreign direct investment (FDI), Thanh Hoa currently has 173 active foreign direct investment (FDI) projects with a total registered investment capital of approximately US$14.96 billion, ranking 8th nationwide. Domestic direct investment (DDI) has also flourished in recent years with projects from nationally renowned investors. However, the progress of investment projects has not been guaranteed, causing some of the province's expected goals to be missed and somewhat affecting the confidence and investment environment for businesses. Along with measures to address difficulties and inadequacies in mechanisms and policies, Thanh Hoa province is pursuing solutions such as implementing strict measures to deal with investors who do not proactively implement projects, as well as selectively attracting high-quality investors, to attract reputable capital flows into investment and business activities.

Text and photos: Minh Hang

Source: https://baothanhhoa.vn/du-an-trong-diem-vi-sao-cham-tien-do-232958.htm