First Solar's decision to halt project worries Vietnam

First Solar's decison to halt the construction of the solar panel in Ho Chi Minh City has raised a worry that it may  stop investing in  Vietnam or narrow the project scale.

The US-based company announced that it will stop the project, after 10 months of implementation.

In the first 10 consecutive months of 2011, HCM City continuously was listed in the top three of the localities in Vietnam which attracted the highest volumes of FDI capital.

Earlier this year, HCM City granted the investment license to First Solar Vietnam, whose investment capital alone makes up 50 percent of the total registered FDI capital, at over one billion dollars.

The factory was expected to employ 600 workers.

However, First Solar recently decided to reconsider the investment plan and investment projects. Prior to that, Rob Gillette, Managing Director of First Solar was dismissed for miscalculating the demand for solar energy in the world, which led to the group’s decision to push up investment.

Lu Thanh Phong, Deputy Director of the HCM City Department for Planning and Investment, has affirmed that the First Solar’s project will still be added into the list of FDI projects in 2011, since the investor has only stated the halt of the construction, not the withdrawal, for the project.

In its latest statement, First Solar said that it has to postpone the construction of the factory until it can see that the world market needs the supply from the factory.

First Solar will complete the construction of the factory, but it will stop the recruitment and equipment import until the project is resumed.