Dispute between industrial park owner and tenant draws official warning

By Tan An, Thi Ha, Thoai Tran   March 31, 2016 | 04:26 pm GMT+7

Long An authorities have pledged to come down hard on owners of industrial parks if they interfere in the operations of their tenants, after a dispute between a park’s management and a Japanese firm got out of hand.

The vice chairman of Long An People’s Committee Le Tan Dung said any industrial park impeding operations of its foreign firms would be fined, as it hampers the business environment.

The move comes after an incident on March 21, when Tan Duc Investment JSC, the owner of an industrial park in Duc Hoa district, placed tons of rocks and dirt in front of the premises of Japanese confectioner Tango Candy. This was in addition to cutting off the factory’s water supply for nine consecutive days.

Tan Duc cited the confectioner’s failure to pay maintenance fees as the reason for their actions.

Tango Candy CEO Tango Hirosuke said the lease contract signed with Tan Duc had no mention of the maintenance fee, and the cutting of the water and dumping of earth took place while both sides were still in negotiations.

Four days after a request from the provincial government, Tan Duc returned the site to its normal state.

Hirosuke estimated the incident cost his firm $15,000 a day and he was ready to defend his case in court should the owner of the park file suit.

Tan Duc has a record of attempting similar stunts with other foreign firms in the park, including KSA Polymer and YSG Apparel.

The park started to charge a fee of over VND10,000 per square meter, per year in 2013, up to 20 percent more than in other industrial parks in the province, according to the Long An Economic Zone Management Board. So far only 75 out of 121 firms in the park have agreed to pay the fee at that rate.

 
 
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