A number of mega tourism projects across Vietnam have failed to begin production as investors are hurt by the economic malaise.

“Investors flocked to buy land and launched flowery ads on their tourism centers in the future, but what can be seen at the venues now are abandoned construction sites and destroyed ad banners,” said Ho Sy Huy, a local resident in Xuyen Moc District of the coastal province of Ba Ria – Vung Tau.

A number of resort projects, namely Tien Thinh, Mat Troi Buoi Sang, and Cat Van, have received investment licenses and land plots from local authorities, but all they have done with the land so far is surround it with fences.

The US$11.44 million Goldenwood Home project, for instance, broke ground years ago but no construction has ever been completed at the 40-hectare land plot zoned for what was expected to be a world-class tourism complex.

Similarly, Hien Nga Co. Ltd., based in Ho Chi Minh City, has failed to start work at the construction site of its namesake resort, even though local authorities have repeatedly threatened to cancel its license.

Elsewhere in HCMC, Sing Viet Co. Ltd., a foreign investor, was licensed to invest in a 300-hectare urban area in Binh Chanh District in 2008, but no work has been started, as the company has yet to finish site clearance and compensation tasks.

Money issue

Many investors admit that financial difficulties are inevitable amid these hard economic times.

Khang Thong Group, for instance, has had to suspend work on its Happyland project in southern Long An Province, which was registered with an enormous capital of billions of US dollars.

“I’m completely devoted to this project, but difficulties amid the economic crisis are unavoidable,” said chairwoman Phan Thi Phuong Thao.

Thao said she has changed the method of mobilizing capital for the project, but the solution seems ineffective.

“I have had to suspend the project to overcome the challenges, but I will never give up on it,” she asserted.

Meanwhile, Huynh Thi Thu Ha, investor in the Goldenwood Home project in Vung Tau, also said she will stick with the project despite the myriad challenges.

Ha said she had problem in mobilizing capital as other investors “were hesitant to pump money into this venture due to the economic slowdown.”

“There are also challenges in completing legal procedures for the project,” she added.

The Ba Ria – Vung Tau government is reviewing all of the sluggish projects and will pull the plug on those with incapable investors, said Nguyen Van Son, deputy chairman of the provincial Department of Culture, Sports and Tourism.

“Meanwhile, we will consider extending licenses for investors who promise to continue to implement the projects,” he added.