Only
way out for long-delayed IP proposed by Hai Duong
Stiffer
measures were proposed to help break the current impasse of notorious
long-delayed Viet Hoa-Kenmark Industrial Park in the northern province of Hai
Duong.
The
Hai Duong Provincial People’s Committee just held a working session with
related parties at Viet Hoa-Kenmark Industrial Park (IP) project and
ultimately came to the conclusion that the IP must be sold in the upcoming
time.
Hai
Duong IP Management Authority was assigned by the provincial People’s
Committee to devise an official way out and submit it to the provincial
management for approval.
“The
project has remained unsolved for quite a long time now, while the IP holds
strategic importance in attracting investment to Hai Duong. This bottleneck
must be tackled without further delay to unlock the so-far inhibited
opportunities for others,” said a source from the provincial
management.
Also
according to the source, the IP was unsuccessfully put on sale several years
ago, but there were no buyers and the $67.6 million debt of IP developer
-Taiwanese furniture-maker Kenmark Group- towards Vietnamese banks still
hangs in the balance.
“Before
it was put on sale, the IP was highly valued by the developer, so buyers were
not charmed. Now price fixing will be assigned to the creditors, promising a
more reasonable pricing to lure buyers,” the source revealed.
Viet
Hoa-Kenmark IP was licensed in 2005. At the time, the developer promised to
inject $500 million into turning the empty land into a mammoth IP and an
urban township.
During
the first phase, Kenmark was set to disburse about $98 million and, in fact,
spent $44 million on building internal roads, workshops, as well as a
wastewater treatment and an electricity generation system.
The
developer abruptly returned home in 2010, suspending the project without
further notice.
Unsolved
contradictions between Kenmark and two Malaysian investors, who not only
contributed capital to building the IP but also ran projects there, were
supposedly one of the main reasons for the project’s failure.
Kenmark’s
suspended $67.6-million debt to Vietnamese banks was another headache with
little solution on the horizon.
To
open a path to dealing with the debt, Kenmark chairman Hwang Ding Kuo flew to
Vietnam numerous times to work with relevant lenders and local management
authorities.
They
came to a consensus on selling the IP to recoup the investment capital and
pay off bank debts. However, all negotiations with potential buyers failed
due to transfer price-related issues.
At
the moment, as the IP project’s price is now fixed by the lenders instead of
the developer, the project promises to be more appealing to investors, paving
the way for a happy ending to a long journey full of adversity.
By Nguyen
Duc, VIR
|
Thứ Năm, 6 tháng 10, 2016
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