The government of Vietnam last week put an end to the development of a Singaporean-modeled industrial park on Phu Quoc Island off the Mekong Delta province of Kien Giang, without citing a reason.
The move is part of Decision No. 868 / QD-TTg on approving the partial adjustment of the planning for construction and development of the southern island until 2030, which was signed by Deputy Prime Minister Hoang Trung Hai on June 17.
Also according to the document, the Ministry of Planning and Investment was assigned to inform the Singaporean partner undertaking the planning work for the Vietnam-Singapore Industrial Park (VSIP) project on the island.
Before that, in early 2014, senior officials of the Kien Giang People"s Committee met with the Binh Duong Province-based Corporation of Investment and Industrial Development (Becamex IDC), the Vietnamese partner participating in all VSIP projects nationwide, on the construction of a complex including the VSIP on Phu Quoc Island.
Shortly afterward, the Kien Giang People"s Committee issued notice No. 106/TB-VP, signed by Chairman Le Van Thi, to require Becamex IDC to research and draw up a plan to develop a 4,000 hectare complex including a residential area, an industrial park applying clean technology and other functional facilities on the island.
The provincial government also asked Becamex IDC to pay attention to the connection between the newly planned areas and the existing zones.
After the plan was approved, the provincial government would consider in detail the scope and investment policy, according to the 2014 document.
After the prime minister advocated for the establishment of the VSIP on the island, the provincial People"s Committee put together an advisory group to attract investment and develop projects on the island in August 2014.
It then set aside an area of about 3,870 hectares in Cua Duong and Cua Can Communes for Becamex IDC to study the plan to develop the complex to lure Singaporean investors.
As planned, VSIP Phu Quoc, covering around 2,900 hectares, will focus on environmentally-friendly high-tech industries, once finished.
Simultaneously, the Kien Giang People"s Committee also coordinated with the Ministry of Planning and Investment to join the Investment Promotion in Vietnam Forum in Singapore late last year in order to call on Singaporean businesses to invest in many tourism, residential and industrial projects inside the complex.
However, information about the development of a high-tech industrial zone on Phu Quoc has stirred public concerns, as the area is evaluated to be appropriate for the development of the tourism and service sectors.
Although it was suggested that the industrial park was planned to attract high-tech industrial projects applying clean technologies, analysts worried about its feasibility, particularly the issue of where to find human resources for the industrial park.
As for recruitment from other areas, this would be ineffective, as the industrial park should be located in an area with an abundant and skillful workforce.
Phu Quoc Island is the largest in the country, with an area of 593 km², equivalent to Singapore, and features many natural advantages.
According to the masterplan for socio-economic development of the island, it will be turned into a special economic-administrative zone in 2020 to function as a national and regional eco-tourism and entertainment center, and financial and transport hub.
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