$872mn urban development project in central Vietnam remains unfinished after 6 years

The Nhon Hoi New City project, located in the Nhon Hoi Economic Zone in Gia Lai Province, was announced with an expected investment of more than VND23 trillion (US$872 million).

The site was planned as a coastal eco-urban area but now shows little sign of progress.

Concrete foundations, exposed steel rods, and partially built shophouses stretch across more than 116 hectares of land.

Most greenery areas have withered, and infrastructure such as schools, markets or hospitals has not been built.

The project includes sub-areas 2, 4 and 9, covering beachfront zones in what is now Quy Nhon Dong Ward.

It lies about 20km from the downtown of old Quy Nhon City, part of former Binh Dinh Province, which has been merged into Gia Lai since July 1.

The developers, Phat Dat Real Estate Development Corp. and partner Danh Khoi Holdings, have failed to ensure the building schedule, the Nhon Hoi Economic Zone management board said.

Local authorities have issued multiple warnings to the companies.

The board said that the developers have begun responding to official requests, adding that progress remains slow.

If delays continue, the provincial government may assign the inspectorate to review the project and recommend penalties under investment regulations.

Thousands of investors had bought land in the project during its early phase, but no land use certificates or completed homes have been delivered.