After consulting the province’s departments of Construction, Planning and Investment, Natural Resources and Environment, the people’s committee revoked four licenses for projects which had not broken ground.

The Cua Nam Lake tourism and entertainment area invested by Truong Giang Saigon Joint Stock Company, the Vocational Training and CITD Computing Development Centre invested by Phong Dong Computing Development and Communication Limited Company, the Product Dealing Centre’s representative office invested by Vietnam Milk Company and a tourism and trading centre invested by Nghe An Container Joint Stock Company all got the bullet.

Tran Duc Bac, vice director of province’s Department of Planning and Investment’s Investment Promotion Centre, said: “The main reason investors were unable to implement the projects was a lack of capital. In some cases, investors failed in signing joint venture contracts with other units rich in finance.” Bac said some developers were land speculators as the projects mostly occupied prime locations.

“These revoked projects will be a warning to investors who have slowed down their construction progress,” Bac said. Currently, eight projects with prime locations in Vinh City are in danger of being revoked. Bac said the projects were granted extensions till late this year due to banks’ tighter credit policies, sky-high interest rates, increased building material prices and the gloomy real estate market. Bac said the province would also strictly examine investors’ financial standings before submitting projects to the people’s committee for approval.