Central Vietnam’s 400 ha IP draws handiest 2 tenants after 18 years

The Nhon Hoi (Area B) Industrial Park, covering over 447 hectares in Nhon Hoi Economic Zone in the south-central province of Binh Dinh, has attracted only two corporate tenants since it was licensed 18 years ago.

Occupancy rate only 7%

The Binh Dinh Economic Zone Authority (BEZA) granted an investment certificate to Hong Kong’s Hong Yeung Vietnam Co., Ltd. to build and operate the Nhon Hoi (Area B) Industrial Park on February 8, 2007. The certificate was revised on November 5, 2012.

The IP, with a total investment of VND546.6 billion ($21.43 milion), was set to complete its infrastructure by December 2011.

However, as of mid-February 2025, it only had a 6.9% occupancy rate, showing low land utilization. It has attracted only two tenants: Austfeed Binh Dinh Co., Ltd., which has invested in an animal feed factory, and Minhyang Biochemistry Vietnam Co., Ltd., with a cassava starch processing factory. These two factories currently occupy a total of 23 hectares.

Notably, according to the Nhon Hoi Economic Zone Master Plan until 2040, approved by the Prime Minister in May 2019, the IP’s industrial area will be reduced to accommodate green spaces and buffer zones for urban areas.

In addition, the zoning plan for the Nhon Hoi Industrial Park-Urban Area (Sub-zone 4 of the Nhon Hoi Economic Zone) was approved by the provincial People’s Committee in August 2020. However, Hong Yeung Vietnam Co., Ltd. has not yet carried out necessary procedures for planning adjustments and investment procedures as required.

The economic zone authority noted in an April 2021 meeting report that the IP construction had been halted. The company has not provided any documents or materials related to construction activities since April 2021.

The Binh Dinh People’s Committee pointed out several violations at the Nhon Hoi (Area A) Industrial Park, saying the developer failed to achieve the verification and approval of the construction design but started land leveling and some infrastructure items, which was not in compliance with regulations.

It also failed to provide relevant documents such as detailed design drawings, quality management records, acceptance minutes, completion drawings, and related invoices.

Furthermore, the developer has not fully invested in infrastructure and failed to conduct a proper acceptance inspection before leasing the land to tenants.

The provincial people’s committee also highlighted the company’s failure to implement environmental monitoring and protection measures since the environmental impact assessment report was approved.

Proposing land recovery

In May 2021, Hong Yeung Vietnam proposed an extension for land use at the Nhon Hoi (Area B) Industrial Park. Subsequently, the economic zone authority granted a two-year extension (from May 28, 2021 to May 28, 2023), with a land lease payment of over VND60 billion ($2.35 million).

After the extension and payment notification, the company filed a petition to the authority and the provincial people’s committee. However, due to disagreements, it filed a lawsuit with the provincial People’s Court. After hearing the case, the court rejected the company’s lawsuit.

In 2022 and 2023, the people’s committee, the economic zone authority, and relevant agencies had multiple meetings with Hong Yeung Vietnam Co., Ltd., but it did not pay the land lease and late payment fees to the state budget.

In early January 2025, the then provincial Department of Natural Resources and Environment proposed the provincial people’s committee issue a land recovery notice to the company and related parties. After the required period, the people’s committee would issue a decision to recover the over 400 hectares of land leased to the company in 2009.

The land recovery is based on violations of the 2024 Land Law. More than 84 hectares were granted for the project but were not utilized within 12 consecutive months from the handover date; over 320 hectares were leased but the utility of the land has been delayed by 24 months compared to the planned timeline.

Recently, the people’s committee sent a document to the Ministry of Public Security seeking its opinion on the land recovery due to violations of land laws.