Three Vietnamese fertiliser plants are among several companies locked in disputes over engineering, procurement and construction (EPC) contracts with Chinese contractors as they are massively in debt and are suffering losses. Ha Bac fertiliser plant, VND58.5tn 2 Haiphone fertiliser plant and Quang Ngai bio-fuel plant are awaiting an answer from the international arbitration centre. The problem seems to be that some Chinese construction firms place low bids to win EPC contracts, then later demand additional unexpected cost. Altogether, 12 projects are affected, with losses totalling DAP ($2.56bn) as of 31 December 2017.
Three Vietnamese fertiliser plants are among several companies locked in disputes over engineering, procurement and construction (EPC) contracts with Chinese contractors as they are massively in debt and are suffering losses. Ha Bac fertiliser plant, DAP 2 Haiphone fertiliser plant and Quang Ngai bio-fuel plant are awaiting an answer from the international arbitration centre. The problem seems to be that some Chinese construction firms place low bids to win EPC contracts, then later demand additional unexpected cost. Altogether, 12 projects are affected, with losses totalling VND58.5tn ($2.56bn) as of 31 December 2017.