In Da Nang, land dispute halts Japanese firm’s 2ha factory project

Morito Da Nang Co., Ltd., which employs around 2,000 workers, had agreed to purchase a 20,000-square-meter plot in Da Nang’s Hoa Khanh Industrial Park from Ton Dong A Da Nang Co., Ltd..

However, the transaction was halted after local authorities flagged legal issues related to the land lease.

The site remains unused, with only a guard post at the entrance.

The plot, located on a main road, is equipped with infrastructure and production-ready facilities.

According to Le Thi Hong Thuy, managing director of Morito Da Nang, the company had signed a transfer agreement and paid 85 percent of the total value before being informed of the legal complications.

“We have filed petitions to Da Nang authorities and are trying to explain the situation to our Japanese leadership,” Thuy said.

Morito Da Nang said it began the land acquisition process in October 2020 after reviewing documentation and found no irregularities.

The company planned to build a factory to produce stamped metal accessories for fashion items, with operations targeted to begin in 2026.

Authorities later informed Morito Da Nang that the land, though sold by Ton Dong A Da Nang, had originally been leased from state-run Daizico, which manages industrial zones in the city, under annual payment terms.

In 2016, Ton Dong A Da Nang switched to a one-time payment model with approval from the Da Nang People’s Committee.

Morito Da Nang said it was unaware of any pending legal disputes during the acquisition process and received official documents confirming Ton Dong A Da Nang had paid for the land in full until 2046.

A January 2025 meeting between stakeholders revealed that Daizico had entered similar one-time lease agreements with hundreds of businesses, despite only being authorized to collect annual payments.

City inspectors concluded that such arrangements violated land regulations and ordered contracts to be revised.

The Japanese Consulate General in Da Nang has also raised the issue with local authorities, requesting action to facilitate Morito Da Nang’s investment.

Daizico has defended its actions, citing instructions from the Da Nang People’s Committee.

Ton Dong A Da Nang also maintained that it had followed city directives.

As of mid-June, Morito Da Nang said it was still awaiting a final response from Da Nang officials.