The plan on developing the Bai Dai tourist area kicked off seven years ago in 2004, when 50 investors registered investment projects. However, it is surprising that the wonderful tourist area remains deserted.

The tourist area in the north of Cam Ranh peninsula, or Bai Dai, with its wonderful charm, is considered the ideal place to develop tourism. That explains why tens of investors come here to seek business opportunities. However, licensed investors have still been slow in implementing projects.

Why hasn’t the wonderful tourist area woken up?

In 2004, the Khanh Hoa provincial authorities approved the plan to develop Bai Dai tourist area which covers an area of 2300 hectares. More than 50 investors immediately registered to make investment in the area.

In order to help investors to speed up their projects, the provincial authorities requested local relevant agencies to build infrastructure items, including the 110KV transformer station, the water supply and drainage system and the waste water treatment system.

However, investors have been very slow in implementing the registered projects. In 2007, the provincial people’s committee revoked the investment licenses from the investors of 20 projects who had bad financial capability.

In an effort to force investors to take more responsibility for the projects’ implementation, the provincial authorities requested investors to advance the money for land leasing. Nearly 30 investors paid 560 billion dong in rents. However, the projects’ implementation speed has not been improved.

There are 30 valid projects in Bai Dai tourist area. Of these, only projects have got the permission for construction, and six projects have completed the procedures relating to the land leasing. Meanwhile, other projects are still following legal procedures: some investors are still projecting the construction, while others are trying to complete legal procedures.

To date, only three projects have been officially started, while others have not taken any move.

The Khanh Hoa provincial authorities have pointed out that all the tourism projects in Bai Dai area have been implemented at a snail’s speed. Some projects got the permission for construction three years ago, but they have not fulfilled any commitments made to the provincial authorities.

At the meeting between the Khanh Hoa provincial authorities and investors on May 18; investors blamed the delay in the projects implementation on the legal procedures. Some said they met difficulties in the site clearance work, while others said they still have not fulfilled necessary procedures due to the changes in the planning and investment capital.

The investor of Bai Rong project said that the investor has decided to make some changes with the project. Since the project now has a bigger investment scale, the investor needs to wait for the decision from the central agencies; because this is beyond the jurisdiction of the provincial authorities. The investor also blamed the changes in the regulations on ranking resorts for the delay.

Stronger sanctions to be applied to speed up projects’ implementation

The Khanh Hoa Construction Department has denied the reasons; stressing that the projects have been slow in implementation not because of the changes in the investment capital. The department’s representative affirmed that the reasons cited by investors were not reasonable.

Vo Tan Tai, Director of the Khanh Hoa Planning and Investment Department, also said: “There is no problem in the investment procedures. The projects’ implementation has been slow because of the problems in the investors’ capability”.

Chair of Khanh Hoa People’s Committee, has stated that if investors do not speed up the projects’ implementation, the provincial authorities will revoke the investment licenses and allocate the projects to more capable investors.

Thang said an inspection team will be set up which will supervise the implementation of the projects in Bai Dai, and that stronger sanctions will be applied to speed up the projects. He wants to see the projects become operational by 2014 at the latest, and promises to give preferences to the projects which can begin operation in 2013.

Source: SGTT