Beachfront tourism project left idle for 20 years in Vietnam’s Da Nang

Located along Truong Sa Street, the 170,000-square-meter project was launched in 2006 and envisioned as an international-standard coastal tourism complex.

The project, developed by Hon Ngoc A Chau Joint Stock Company, carried total investment capital of VND1.376 trillion (US$53 million) and was expected to become operational by the end of 2018.

However, it has remained largely abandoned.

At the site, thick vegetation has spread across large areas, while two building shells near the beach have been left unfinished for years.

Parts of their walls have crumbled, exposing rusted steel reinforcement.

A recent inspection conclusion by the Da Nang inspectorate identified a series of legal and administrative obstacles that have delayed the project.

The investor received an investment certificate in 2007, but parts of the project land were subsequently recovered by the state for public works, forcing revisions to investment, construction planning, land, environmental, and financial procedures.

The project has also undergone multiple planning adjustments while its detailed 1:500-scale plan is being revised following further land recovery for a public investment project.

The adjustment has faced difficulties, including issues related to the allocation of permanent residents within the project area.

Another problem concerns land recovered in June 2021.

Part of the project site was reclaimed in June 2021, but compensation and support procedures for the land recovery have yet to be completed.

The land lease contract was also not amended following the recovery to recalculate the investor’s annual land-rental obligations.

As a result, the investor has continued to pay rent on more than five hectares of land that had already been reclaimed, which the inspectorate deemed inappropriate.

The inspectorate recommended that the chairman of the Da Nang People’s Committee order reviews of the responsibilities of relevant agencies, organizations, and individuals.

The Department of Agriculture and Environment was asked to clarify responsibility for delays in adjusting the land lease contract and transferring updated cadastral information to the tax authority.

The city’s tax authority and the People’s Committee of Ngu Hanh Son Ward were also requested to review responsibility for delays and shortcomings in handling tasks related to the project.