Ha Tinh steel mill’s bad debts continue to haunt
The Van Loi Steel Mill project in Ha Tinh Province has been closed for years but the VND750bn (USD32.88m) bad debt still hasn't been dealt with.
In 2015, the management board of Vung Ang Economic Zone issued the announcement to shut down the project and withdraw the investment certificate.
By that time, many banks including Vietnam Development Bank, BIDV, and Vietcombank had given VND750bn in loans. The Vietnam Development Bank in Ha Tinh lent out nearly VND580bn alone.
Dang Van Thanh, deputy head of the management board of Vung Ang Economic Zone, said they asked the investors to remove the construction and return the land but the site hasn't been completely cleared.
Recovering the debts has been difficult . A representative of Vietnam Development Bank said they had submitted the document to the court for over a year but it was still being considered. Since they are in the debt-recovery process, no one has to take the responsibility for the project's failure and debts yet.
Ha Tinh People's Committee said the VND750bn debt were the left overs of civil law contracts so the banks must recover the money back for the state. Meanwhile, the management board of Vung Ang Economic Zone only issued and revoked the investment certificate.
The abandoned steel mill project
Van Loi Steel Mill project which cost over VND1.7trn (USD68m) was built in 2007 in Vung Ang Economic Zone. It was expected to be completed and go into operation in December 2008. However, work on the project was stagnant for six years and the equipment was abandoned.In 2015, the management board of Vung Ang Economic Zone issued the announcement to shut down the project and withdraw the investment certificate.
By that time, many banks including Vietnam Development Bank, BIDV, and Vietcombank had given VND750bn in loans. The Vietnam Development Bank in Ha Tinh lent out nearly VND580bn alone.
Dang Van Thanh, deputy head of the management board of Vung Ang Economic Zone, said they asked the investors to remove the construction and return the land but the site hasn't been completely cleared.
Recovering the debts has been difficult . A representative of Vietnam Development Bank said they had submitted the document to the court for over a year but it was still being considered. Since they are in the debt-recovery process, no one has to take the responsibility for the project's failure and debts yet.
Ha Tinh People's Committee said the VND750bn debt were the left overs of civil law contracts so the banks must recover the money back for the state. Meanwhile, the management board of Vung Ang Economic Zone only issued and revoked the investment certificate.
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