Vinashin bankruptcy means wasted land in Haiphong

A project of Nam Trieu Shipbuilding Corporation left idle

A project of Nam Trieu Shipbuilding Corporation left idle

The bankruptcy of the Vietnam Shipbuilding Industry Group (Vinashin) has caused the delay of many projects, leading to serious land waste in Haiphong city, affecting local households.

Over the past years, a number of Vinashin affiliates have rushed to take on projects in Thuy Nguyen District. However, the idea of industrialisation and modernisation of the district failed after Vinashin’s bankruptcy.

As much as 140ha out of 200ha were revoked for three Vinashin projects, affecting at least 400 households.

Tam Hung Commune is now home to two delayed projects of the Vinashin’s affiliate Nam Trieu Shipbuilding Corporation. The projects, covering a total 67.5ha of land, were started in 2008 but remain idle to this day.

The people of Hoang Dong Commune also had to give up 69ha of land to Vinashin An Duong shipbuilding project, which is is still a fallow land plot. Meanwhile, an entertainment and tourism complex planned by Quang Minh-Vinashin Tourism and Investment Company also occupies 151ha of land at Thuy Son Commune. The project has not progressed because of a lack of capital.

Vu Huu Mai, Chairman of Lam Dong People’s Committee, said people have not received any compensation from the investors, as they watch their land lie idle.

Lai Van Duc, of Tam Hung Commune, said, he and his brothers leased 2,880 square metres for aquaculture. They invested much of their savings in the area, but because of the Vinashin projects that area is not in use.

Local authorities want to re-lease the planned land plots to households for a short time, but few want to take the land because it would take them at least 3-5 years to recover their investment.

In Lam Dong Commune, dozens of houses have become duplicated and are facing the risk of collapse, but their owners are not allowed to rebuild, as their land has been already allotted to Vinashin projects.

According to the authorities of Thuy Nguyen District, most of Vinashin projects are in violation of time restrictions, and the planned land plots could be revoked. They agree that the best solution would be to find new investors, but in these tough economic times investors are hard to come by.

Nguyen Van Vien, Director of Land Fund Development Centre of Thuy Nguyen, said the district has proposed that municipal authorities report on the situation to the government. However, the Vinashin affiliates are in the process of restructuring, so most of their projects are remain delayed.