The Vietnamese government is canceling plans for Taiwan-based Foxconn to manufacture mobile phones in the country.

An official from the government of Vietnam revealed that their related department has cancelled the investment license issued to Foxconn Group for the construction of a USD200 million mobile phone plant in Vietnam.

Nguyen Tien Hanh, head of investment promotion department of Vinh Phuc, Vietnam, said that they have cancelled the investment license previously issued to Foxconn Group because the group's mobile phone plant project in Vinh Phuc province did not gain any substantial progress.

Foxconn Group gained the investment license to build a plant, which would be located 60 kilometers to the north of Hanoi, in 2009. At that time, the global financial crisis was in full swing and many manufacturers in China were seeking new, cheaper locations like Vietnam, Myanmar, and Laos to build production facilities.

The Foxconn plant was expected to complete construction in 2010 and produce 89 million phones and tens of millions of phone parts on an annual basis.

Hanh said that disregarding many warnings from the government, Foxconn Group did not take any action for the plant construction. Therefore, they decided to revoke the license.

Foxconn Group did not give any comment on the news.