According to the department, there are 55 tourism-related projects with a cumulative investment value of US$2.84 billion, including 10 by foreign firms worth $1.2 billion.

Of the 45 domestic projects, eleven, worth a total of $636 million (four hotels and trade centres and seven resorts), were allotted land more than three years ago but the investors have made no progress. The Bai But Bay Resort by the HCM City-based Hai Duy Joint Stock Company and the Bai Trem Tourism Zone by the Sai Gon General Service Corporation are among the eleven.

The city handed over land for the two projects in December 2006, but construction has yet to begin. The department has recommended that if there is no progress by the end of this year, the city should repossess the rented portions of the land. If after a year the situation remains the same, the city should take back the rest of the land as well, it said.

In other cases, work has started but the progress is not on schedule.

Work on the $125 million Da Nang Centre, developed by the Vu Long Chau Real Estate Joint-Stock Company, for instance, began in March 2008. Its foundation was completed before work stopped in the middle of last year. The 39-floor building, including four floors below ground, which will have a shopping mall, five-star hotel, and luxury apartments, is scheduled for completion in 2011.

Dong Thi Bich Chinh, the departmen’st deputy-director, said the city would urge investors of delayed projects to complete certain portions of the work and announce deadlines.

If they failed to meet the deadlines, Chinh added, the city would take back the lands allotted to them, evaluate the constructed portion, and pay compensation, before finding new investors to take over the incomplete projects.

(From Investment Newspaper)