Many projects in what Vietnamese investors once termed the “golden land”, along coastlines in Danang City and Quang Nam Province, have been stagnant for years and authorities have not revoked the land.
The Da Phuoc New Urban Area Project in Hai Chau District, Danang City covers an area of 210 hectares, including 180 hectares along coast. If construction would have gone according to schedule, it would arguably have been the most prominent urban area in the city. But the site lies idle and is an eyesore for nearby residents.
“Golden land” in Danang City lies idle
The complex was to include a resort, an 18-hole golf course, a marina, an large hotel, a meeting hall, high-end offices, trade centres and villas. The total cost was estimated at USD 300 million.
However, only the site clearance phase has been completed, leaving the entire land unused for years.
The Hon Ngoc A Chau project on Truong Sa Road in Ngu Hanh Son District covers an area of 17 hectares. The municipal government granted an investment license to the project on July 2009 and the project’s estimated cost was VND1.551 trillion (USD73 million).
The project initiated in early 2010 with a spectacular ceremony. However, to date the high-end apartments and villages have remained on paper for nearly four years. The construction site has been abandoned and materials are aging.
Dozens of other projects in Danang and Quang Nam Province have faced the same fate. Still, local authorities seem hesitant to revoke the land.
When asked about the situation, leaders from the Danang municipal Department of Environment and Natural Resource confirmed that they would seek for approval from the municipal government to revoke land from stagnant projects.
In early 2014, the city’s Party Committee requested the municipal government to scruntinise all investment projects citywide and to revoke investment licenses of incompetent investors.
In March, the municipal Department of Environment and Natural Resources had requested that the investors of three sluggish coastal projects sign commitment agreements. They intend to ask around 20 more project investors to do the same.
“We’ll seek city government approval for revoking the investment license of any stagnant project,” said an official from the department.