A perspective drawing of the Da Nang Information Technology Park. Trung Nam Group has recently restarted the construction of the park in Hoa Vang District's Hoa Lien Commune. — Photo cand.com.vn

HA NOI (Biz Hub) — The Trung Nam Group has recently restarted the construction of the Da Nang Information Technology Park in Hoa Vang District's Hoa Lien Commune in the central city of Da Nang.

Bui Xuan Dinh, general director of Trung Nam Land Co., Ltd, the member company of Trung Nam Group, confirmed this information, saying the project will be spread over 341 hectares.

The city's People's Committee had granted an investment certificate to construct the project to Rocky Lai & Associates Group from the United States in 2012. It officially began construction on April 6, 2013. The American corporation and other investors had levelled a total area of 116.5 ha, but construction was stalled in August 2014.

Pham Kim Son (right), director of Da Nang city's Department of Information and Communications, and Bui Xuan Dinh (left) give presents to representatives of contractors. — Photo ictdanang.vn

Pham Kim Son, director of the city's Department of Information and Communications, said the American investors had stopped work on the project because they were facing difficulty getting funds for investment, and not because the city did not appraise the project.

He also told the Tien Phong newspaper that the financial capacity of the corporation is good, but the project might not be suitable for its business strategy. "It is more likely that the enterprise will not withdraw all stakes from the project, but keep about 35 per cent. They will also cooperate with Vietnamese investors to execute the project," he added.

Ly Khanh Linh, a representative from the American firm, told the newspaper that the company has invested about VND20 billion (about $952,400) in the project, mostly for preparation, design and operations. He said the group has had difficulties gathering resources and has limited capital due to the global financial crisis, which has kept it from paying the contractors.

The project is also expected to be executed over a decade and in two phases. The firm will carry out the construction over an area of 131 ha, with a total investment of US$82 million during the first phase of 2013 to 2017 and on an area of 210 ha, with a total investment of $196 million during the 2017 to 2023 period.

The project, which is based on the model of Silicon Valley in the United States, aims to build a synchronized infrastructure system and draw investors to construct manufacturing plants. It also aims to draw leading scientists, experts and engineers from the software and digital content industry for working in the zone, teaching and conducting research. — VNS