The Vietnamese government has cooled excited chatter about a billion dollar creative city project in Phu Yen province, proposed by a US-based company. deputy prime minister Hoang Trung Hai said, via the government Office, the project's proposal was not convincing enough.
"The proposal still lacks a lot of essential information to prove its feasibility, as well as the ability of the investor," Hai stated.
The Phu Yen People's Committee submitted the proposal to the government seeking in-principle approval.
The committee said the project, backed by the American Galileo Investment Group, would cover 7,000 hectares, including a high-tech city, a university area and a commercial area.
The investor announced it would pump about $1.6 billion into the project's first phase through to 2015.
By 2035, the investor would expand its total investment to $10 billion.
Hai asked the investor and Phu Yen People's Committee to revise the investment proposal so it could prove the project's feasibility and investor's ability before resending it to the prime minister for approval.
"We will ask Galileo to prepare another application and we will resend it to the government soon," said Nguyen Ba Loc, vice chair of Phu Yen People's Committee. "This is a very big project, so we need to know that the investor is up to it. Galileo must satisfy every requirement set by the government to prove the project's feasibility," he said.
The project is one of the largest foreign direct investments proposed in Phu Yen, which has emerged as a hot destination for property investors.
Apart from Galileo, Swiss Tradco Global Engineering & Construction SA also proposed to invest $1.5 billion into a luxury coastal villa complex, consisting of apartment buildings, shopping malls, a golf course and a five-star resort.
Last year, the province licensed the New City Vietnam project, with a Brunei investor, to build a high-grade tourism complex capitalised at $4.3 billion. The project features luxury resorts, 4,300 five-star and 8,900 four-star hotel rooms, 160 high-grade villas, a 36-hole golf course and many other service facilities.
The province also has the $30 million VietStar Resort-Spa project on its books consisting of villas, a resort and a cable system linking Nui Thorn and Bai Xep. Additionally, Laperla Tashun company has funnelled $10 million into Bai Tram tourism proiect.
|
