Document No. 975/UBND-KT1, issued by Vice Chairman Tran Bau Ha of the Ha Tinh Province People’s Committee, approves the termination of the project invested by Vu Quang Iron One-member Co. Ltd., located in Tho Dien Commune, Vu Quang District, Ha Tinh Province.
The provincial Department of Planning and Investment has been directed to lead the coordination with relevant agencies and local authorities to ensure all necessary documentation and procedures are completed in compliance with regulations. The Department will be held legally accountable to the provincial People’s Committee and relevant bodies for the implementation of this directive.
This decision follows a report from the Department of Planning and Investment (Document No. 4312/SKHDT-DNDT, dated December 17, 2024) recommending the project’s cessation. This report detailed the investor’s outstanding non-compliances, as detailed in the minutes of a meeting held on May 14, 2024.
The investor violated the investment certificate, including an 11-month production delay (contravening Article 6 of investment certificate No. 28121000022, issued by the Ha Tinh Province People’s Committee on May 12, 2008). The project failed to complete all approved components (notably, the coal storage facility). The overall schedule was delayed by over 16 years, with changes from the approved site plan. Despite commencing operations, the project ceased production in 2011.
During a site inspection on November 14, 2024, the company had not rectified the identified non-compliances documented in the May 14 meeting minutes. Additionally, the company had not paid the administrative fine stipulated in Decision No. 88/QD-XPHC, issued by the Inspectorate of the Department of Planning and Investment on June 14, 2024 and had submitted a report (No. 24/CV-SVQ, dated June 21, 2024) declaring its inability to pay due to financial constraints.
Moreover, tax authority records indicate that, as of October 31, 2024, the company had outstanding tax liabilities of nearly VND9 billion (US$352,800), including natural resource tax, environmental protection levies, business registration fees, land lease payments, penalties, and other late payment charges.
In its December 17-2024 report, the Department of Planning and Investment recommended that the Ha Tinh Province People’s Committee approve the termination of this iron ore processing plant project.
The project, granted an investment certificate by the Ha Tinh Province People’s Committee in 2008, encompasses 192,318m² with a total investment of VND158 billion ($6.2 million), and officially commenced operations in May 2009.
The project’s objective was to construct a crushing and processing plant with a capacity of 500,000 tonnes of refined ore per year to supply raw materials to the steel billet plant in Vung Ang Economic Zone, sited in Ky Anh Town of Ha Tinh Province.
However, due to a series of factors, the project ceased operations and was subsequently abandoned. The plant currently holds approximately 100,000 tonnes of unsold refined ore. The investor has been unable to resume operations and faces significant challenges in dealing with the abandoned facility.
