Transforming Northern Logistics: A $176 Million Dollar Question

The Vice Chairman of the People’s Committee of Bac Giang province, Phan The Tuan, recently inspected the progress of the “Infrastructure and Warehouse Center of Bac Giang City International Logistics Center” project.

According to the investor’s report, the total investment capital for the project is VND 4,194 billion. As of July 30, investors have contributed a total capital of VND 638 billion, reaching 15.21% of the registered investment capital.

In terms of site clearance, the project has completed two phases of site clearance, land use conversion, and land leasing, with a total area of 64.52 ha, accounting for 97% of the total project area. For the technical infrastructure items, the goods warehouse, and the rest stop, the implementation progress has basically reached over 50%. However, the wastewater treatment station has not been constructed yet as the construction permit has not been granted by the competent authority.

The investor’s representative explained that the project’s delay was due to subjective and objective reasons, including the Covid-19 pandemic and slow site clearance, which affected land lease and handover procedures.

At the working session, a representative of the Planning and Investment Department of Bac Giang province said that according to their monitoring, the investor has not implemented additional procedures or construction items after the Conclusion of Inspection No. 542/KL-TTr by the Bac Giang Provincial Inspectorate.

To ensure the progress of the project, the Planning and Investment Department requested the investor to develop a detailed construction schedule as a basis for monitoring by management agencies. At the same time, the investor was urged to seriously implement the capital contribution obligation, and in case of failure to do so, the Department will propose to the People’s Committee of Bac Giang province to consider terminating the project.

Concluding the working session, Mr. Phan The Tuan, Vice Chairman of Bac Giang Provincial People’s Committee, emphasized the importance of the project for the local socio-economic development. He requested the investor to urgently fulfill their capital contribution obligations, proactively accelerate the project implementation, and ensure the progress of capital contribution and mobilization for the project.

He also urged the provincial departments, sectors, and Bac Giang City People’s Committee to strengthen the monitoring and supervision of the investor, proactively remove difficulties and obstacles in the project implementation process, and promptly propose and handle any limitations, shortcomings, and violations of the investor in accordance with regulations.

According to VOV’s investigation, on September 23, 2016, the People’s Committee of Bac Giang province issued Decision No. 562/QD-UBND, approving the investment policy for Bac Giang International Logistics Joint Stock Company as the investor of the “Infrastructure and Warehouse Center of Bac Giang City International Logistics Center” project in Song Khe commune, Bac Giang city. The project aims to build a modern and multifunctional center, forming an important link in the supply chain connecting international trade corridors.

The project covers an area of 66.69 ha, with a total investment capital of over VND 4,100 billion, and an operation period of 50 years from the date of approval of the investment policy.

According to the plan, the project will be implemented in three phases (from September 2016 to January 2025). However, as of September 26, 2021, the investor officially started the construction of the first phase of the project, and after nearly three years, the project is still stagnant with only a few unfinished items.

Furthermore, the Conclusion of Inspection No. 542/KL-TTr dated September 18, 2023, by the Bac Giang Provincial Inspectorate, pointed out a series of violations and shortcomings in the implementation of investment, construction, tax, and financial obligations by the investor during the project implementation.