Dong Nai authority shutting down inactive projects
“We are considering revoking the investment licences from another 47 12-month overdue projects, which authorities have deemed to make little contribution to the province’s socio-economics in the near future,” he added.
Some delayed projects lack even the adequate financing to build offices, which has made it difficult for the authority to contact their representatives.
A visit to the Bien Hoa 1 industrial zone shows the land for the Nippon Vina joint venture being used for car parking, and no contact information is available.
Another example is the Dinh Quan industrial zone-based Kyung Rim Vina Ltd. Although it signed an initial contract with an infrastructure firm, the company returned its land and stopped its operations as of May 2014, but hasn’t yet closed its tax code.
According to the management board of Dong Nai’s industrial zones, many FDI firms are neglecting to pay tax and social insurance. For example, Dong Yang Inc. Ltd, based in Nhon Trach industrial zone, has failed to pay taxes of VND18 million ($860) and VND28 million ($1,300) for social insurance.
Nhon Trach 1-based C&H Vietnam Ltd is also shut down, but still has a tax code and owes more than VND800 million ($38,000) in social insurance.
In 2013, Dong Nai revoked investment licences from 17 of 30 non-operating FDI firms. “Dong Nai’s investment policy is to fully support productive projects that make contributions to the provincial budget and create jobs for local people,” Nhon underscored.
