Ghosts of Vietnam's coastal dreams: Haunting tale of corruption, waste

In Quang Ngai Province, 2 projects with investment capital of over VND3.8 trillion (US$149.6 million) –Thien Dang Ecological Tourism Area (capital over VND1.8 trillion - $70.9 million) and Dung Quat Urban Area (investment capital over VND2 trillion - $78.7 million) near Khe Hai Beach (Binh Thanh Commune of Binh Son District) within the Dung Quat Economic Zone - are typical examples of wasting land resources.

During the last days of November 2024, Dung Quat Urban Area has been nothing but a vast field of wild grass for 8 years. This stretch of land spanning hundreds of hectares was once farmland and crops of the people in Binh Thanh Commune.

Situated next to it, Thien Dang Tourism Area, occupying the most beautiful location on Khe Hai Beach, shares the same fate. No “paradise” (as the Vietnamese name goes) was seen; what struck the eyes were only soulless concrete blocks, mixed with wild, desolate bushes. The deeper into the area, the more wild plants, debris, and construction waste can be spotted.

While grazing livestock near the project, 43-year-old Ho Thi Huynh Nhu from Binh Thanh Commune recounted with melancholy. Nearly two decades ago, the project sprouted a few beautiful houses, but within less than two years, it became completely stagnant until now. The project's disintegration not only squandered land resources but also decimated the local population's means of subsistence, not to mention the potential for this area to become a hub of social pathologies.

Chairman Nguyen Tan Dung of the Binh Thanh Commune People's Committee disclosed that for the Dung Quat Urban Area project, the local authorities requisitioned approximately 170 hectares, transferring them to Hoang Thinh Dat JSC. in 2015. During recent dialogues, the community expressed profound frustration regarding the inefficient land utilization, while the primary investor indicated they were seeking an extension to locate a potential purchaser.

This project was licensed in January 2005, with Thien Dang Co. as the investor. It covers an area of 286 hectares and was committed to be completed in 2009. However, by 2009, this so-called “heaven” project had collapsed and had had to request an extension four times; but until now, it remains like a “hell on earth”.

According to the conclusion of the Quang Ngai Provincial Inspectorate, over 16 years (2005-2021), the investor only operated for two years (2006, 2007) and worked on 32 hectares. The Inspectorate determined that the enterprise continuously violated the schedule for 11 years, but the Dung Quat Economic Zone Management Board did not establish procedures to handle violations or request the competent authority to handle them, leading to the consequence that although the project continued to violate the schedule, it was difficult to terminate.

Following National Highway 1 towards the coast of Phu Yen and Binh Dinh provinces, numerous tourism real estate projects are also struggling and languishing, mostly on paper. From Quy Nhon City (Binh Dinh Province), following the main road across the Thi Nai Bridge to Nhon Hoi Economic Zone, it remains vast stretches of sand. Many investment projects, including tourism ones, are half-finished, operating sporadically, and barely making a living.

Residents in Vinh Hoi Village (Cat Hai Commune of Phu Cat District) express deep concern over Cat Hai Bay Luxury Resort, a decade-old project with minimal progress. The project has disrupted livelihoods and left valuable farmland idle. Local fears persist regarding the project's true intentions, with suspicions of land acquisition for speculative purposes.

The village's fertile land, once a source of substantial income from crops like peanuts and root vegetables with income of up to VND300 million (US$11,800) per harvest season, has been sacrificed for the stalled project. The residents question the project's genuine purpose and whether it serves as a mere land-grabbing scheme.

Secretary Ho Quoc Dung of the Binh Dinh Province Party Committee observed that after 20 years of purported development, Nhon Hoi Economic Zone remains an expansive, undeveloped sandy landscape. He emphasized the urgent necessity to swiftly address existing deficiencies and redefine the urban plan to facilitate more meaningful development.

Other mega-projects in the Central coastal areas are facing similar sad situations. The Cu Lao Mai Nha project, a 130-hectare expanse in An Hoa Hai Commune of Phu Yen Province, has languished for fourteen years, a testament to severe mismanagement and neglect. The Government Inspectorate has recently intervened, urging authorities to expedite the resolution of this wasteful endeavor.

The New City Vietnam Luxury Resort project, initially a billion-dollar venture, has been plagued by delays and controversies. Despite securing a vast land allocation, the investor's financial capacity remains questionable. The project's repeated scale modifications and extended timelines raise serious concerns about its viability and the government's oversight.

Director Vo Dinh Tien of the Phu Yen Province Planning and Investment Department shared that the Provincial People's Committee Chairman would convene a meeting to hear reports from all parties and provide specific directives. Regarding the New City Vietnam project, the department had conducted a re-evaluation, but certain aspects remained unsatisfactory, rendering the project insufficiently qualified for submission to authoritative bodies for modification approval.