Mr. Vo Kim Cu officially speaks out about granting a 70-year license to Formosa

The former Ha Tinh provincial party secretary said granting a 70-year license to Formosa Hung Nghiep Company Limited was in accordance with procedures, but he admitted that he was partly responsible for the environmental incident caused by Formosa.

Afternoon of July 24,PVThere was an interview with Mr. Vo Kim Cu, Chairman of the Vietnam Cooperative Alliance, former Secretary of the Ha Tinh Provincial Party Committee, about the licensing of Formosa.

- According to regulations before 2014, the provincial level was only allowed to grant land leases for 50 years, but Ha Tinh leased land to Formosa for 70 years. How do you explain this?

- This is a big project. At that time, we did it seriously, based on relevant legal regulations as well as decisions of competent authorities. Specifically, the decision that Vung Ang Economic Zone is a particularly difficult area, enjoying preferential policies of the Government. Decree 108 of the Government also clearly states the subjects, scope, and duration of incentives, which types are encouraged to invest the most, and which types have the level.

Relevant legal regulations state that the land lease period for projects in general shall not exceed 50 years, but for large-scale projects with slow capital recovery periods and in areas with special socio-economic difficulties, the period may be extended to no more than 70 years.

Mr. Vo Kim Cu, former Secretary of Ha Tinh Provincial Party Committee. Photo: Vo Hai.

- So why did the Government Inspectorate determine that Ha Tinh's 50-year license was not within its authority?

- Here is a process, first the competent authority accepts the investment policy, then the ministries and branches give their opinions, then the locality takes steps according to the law, including the step of completing the issuance of the investment certificate. After the Government Inspectorate raised the issue, the competent authority held a meeting with the participation of the ministries and branches. The Ministry of Planning and Investment proposed to continue to maintain the regulation of the term of 70 years and this opinion was agreed by the competent authority.

- Among the 3 corporations wishing to invest in Ha Tinh, there is Tata Group, why was Formosa chosen?

- We have to talk about the historical context, at that time there was a policy to call for investment in the fields of steel, electricity, and seaports. At that time, there were 3 large foreign corporations wanting to enter Ha Tinh, but 2 corporations did not build seaports, one corporation requested to be granted a license to exploit Thach Khe iron mine, while Formosa committed to building steel, seaports, and investing in power plants.

For us, this was a brainstorming session and we decided to keep the iron mine for our children to work on later. That means that out of the three foreign investors, Formosa got the highest score, meeting the criteria for incentives, including one of employing over 5,000 workers. We also had to ask for the Central Government’s opinion, not the locality’s decision.

- Ha Tinh accepted Formosa's project for development, but so far it has led to a huge environmental incident and many other consequences?

- This is an unexpected incident. Up to now, the Government and relevant agencies have promptly handled it. When Formosa had not yet committed to compensation, the Government issued a document providing emergency support to the people of the four provinces, and all ministries and branches have taken action. The current issue is to stabilize the situation soon, and if any individuals or organizations violate the law, they will be strictly handled according to the law, while not affecting the investment environment. The important thing is to draw lessons to rectify in the future.

- The lesson here is that human living environment should be considered the most important factor?

- This lesson is not specific to any locality or country. It is a series of issues from policy planning, mechanisms, to investment organization, investment management at all levels, so that the criteria are more standardized. Do not accept development at all costs, take the human factor and human living environment as the core.

- With this lesson, the leaders of Khanh Hoa province previously rejected Posco's billion-dollar steel project, what do you think?

- These are two different things, cannot be compared. Here, it is because Posco's steel project does not meet the criteria, on the other hand, when considering the conditions unfeasible, it was rejected.

- Formosa not only caused marine environmental incidents but also buried waste in many places on land. Is this because Ha Tinh did not consider Formosa's waste treatment when accepting the project?

- Not like that. Formosa has a waste treatment area within the granted land area, it is required to treat it there to be responsible. I myself do not agree with this, it is a violation, must be strictly punished.

There are many reasons for Formosa dumping waste outside, it could be due to the person in charge of Formosa’s waste treatment, but it could also be due to the organizations and individuals operating in the area. If no one accepts to transport and store waste, how can there be violations? Therefore, it is necessary to clarify and strictly handle the related parties.

- Currently, besides the request for Formosa to thoroughly overcome the existing problems, improve technology, and prevent violations from recurring... there are also opinions that the consequences caused by Formosa are too great and must be reconsidered?

- This depends on the authorities, I have no authority. In my opinion, no matter what the plan is, the criteria must be to ensure the environment for both the short and long term, not only Vung Ang, not only Ha Tinh but also the surrounding areas.

The technology is up to Formosa, but it must be advanced and modern. If it does not meet the environmental protection requirements according to the law, the factory will be closed.

- As the leader of Ha Tinh during the Formosa investment period, what do you see as your responsibility now and have you ever thought "what if"?

- In the context as I mentioned above, based on legal regulations, regarding the implementation of investment and licensing procedures, I have done it seriously, fully and strictly, there is nothing wrong. What worries and concerns me is that Formosa violated and caused an environmental incident that affected the lives of people, including my relatives. Of course, I feel partly responsible, saying that I am standing outside is not right.

Personally, I have made recommendations to the competent authorities as well as contacted organizations to find solutions to support people to stabilize their lives soon. In my opinion, this incident should not lead to hindering the development momentum, affecting other issues. Currently, the Government has given strong instructions, some issues have been handled, some are being further inspected for further handling in a transparent and fair manner.

According to VNE