Failure to Implement Will Result in Project Termination
Regarding the project “Infrastructure and Warehouse of Bac Giang City International Logistics Center,” which has encountered numerous issues, at a progress review meeting, Mr. Vu Van Cuong, Deputy Director of the Department of Planning and Investment, stated that after the Inspection Conclusion (issued on September 18, 2023) by the Provincial Inspectorate, the project’s investor, Bac Giang International Logistics Company Limited, has not initiated any further procedures or construction work.
To ensure the project stays on track, Mr. Cuong requested that the investor develop a detailed construction schedule with specific timelines, tasks, and responsibilities to serve as a basis for government agencies to monitor its implementation. He also emphasized the importance of the investor strictly adhering to the escrow requirements.
Notably, Mr. Cuong warned that if the investor fails to execute the project, the Department of Planning and Investment will propose to the Provincial People’s Committee to consider terminating the project.
If Bac Giang International Logistics Company Limited does not proceed with the “Infrastructure and Warehouse of Bac Giang City International Logistics Center” project, the Department of Planning and Investment will propose to the Provincial People’s Committee to consider terminating it. (Illustrative image: Lap Dong)
Meanwhile, Mr. Vu Van Tuong, Deputy Director of the Department of Natural Resources and Environment, emphasized the need for the investor to promptly develop a plan to utilize the land fund to ensure adherence to the approved schedule and purpose.
Regarding the remaining area of 2.17 hectares, the Department of Natural Resources and Environment has conducted an appraisal and requested the investor to make corrections, supplements, and completions. They have also directly worked with and guided the investor in completing site clearance and determining the specific land use structure.
According to the representative of the Department of Natural Resources and Environment, only when the investor proactively completes the aforementioned tasks will the department have a basis for appraisal and advising on land allocation.
At the same time, Mr. Phan The Tuan, Vice Chairman of the Provincial People’s Committee, requested that Bac Giang International Logistics Company Limited promptly fulfill its escrow obligations. He urged the company to be proactive and expedite the project’s progress, develop concrete plans for implementing specific tasks, and ensure capital contribution and mobilization schedules.
The Vice Chairman also instructed the provincial departments, sectors, and the People’s Committee of Bac Giang City to enhance their monitoring of the investor’s compliance with legal regulations. He emphasized the importance of proactively addressing difficulties and obstacles faced by the investor and proposing timely handling of the investor’s shortcomings, limitations, and violations in accordance with regulations.
Investor Had Repeatedly Faced Violations
According to our understanding, on September 23, 2016, the People’s Committee of Bac Giang Province approved the investment policy for the project “Infrastructure and Warehouse of Bac Giang City International Logistics Center,” with Bac Giang International Logistics Company Limited as the investor. Subsequently, the Department of Planning and Investment issued the Investment Registration Certificate for the first time on September 30, 2016, and the second adjustment on May 24, 2022, for the company to implement the project on an area of 66.69 hectares.
The project has a total investment of over VND 4,194 billion. The duration of the project is 50 years from the date of approved investment policy, and it is considered a key project for Bac Giang Province.
As planned, the project was to be divided into three phases (from September 2016 to January 2025). However, in reality, it was not until September 26, 2021, that the investor officially commenced the first phase of the project. And after nearly three years of construction, only a few items have been partially completed.
During its implementation, the project “Infrastructure and Warehouse of Bac Giang City International Logistics Center” has repeatedly been reprimanded and administratively sanctioned for violating legal regulations and delays.
Inspection Conclusion No. 542 (issued on September 18, 2023) by the Bac Giang Provincial Inspectorate pointed out that the investor made untruthful and inaccurate declarations regarding capital contribution. Additionally, after the approved investment policy, the investor proceeded with delays in capital contribution and mobilization and slow project implementation without conducting adjustment procedures.
Consequently, the Department of Planning and Investment imposed administrative sanctions for violations in the field of planning and investment for the investor’s failure to comply with the content of the Investment Registration Certificate (Decision No. 53/QD-XPHC dated October 12, 2022). However, the investor continued to delay capital contribution and slow down project implementation.
The inspection also revealed that during the construction of the project’s works, Bac Giang International Logistics Company Limited decided to establish a Project Management Unit that did not meet the conditions for construction management.
Furthermore, during the tax declaration and finalization for 2021, the investor leased a concrete mixing station system to operate and provide concrete for the project, earning VND 4.5 billion but failed to recognize revenue for tax calculation.
