Cocobay Danang mega assignment in central Vietnam nonetheless at a standstill

The developer of the Cocobay Danang project in central Vietnam announced plans to resume construction in May 2024, but as of now, no visible progress has been made.

In early May 2024, Thanh Do Investment Development and Construction JSC – the developer of the Cocobay Danang luxury resort and housing complex on Truong Sa street – submitted a proposal to Danang’s authorities outlining plans for the project’s resumption.

The company then stated that construction would resume in that month, with various phases scheduled for completion at different times. The projected timeline spans from April 2024 to January 2029, with key components expected to be completed by the end of this year.

These include the HH3 section, which consists of a commercial building and condotel complex and the Co Co 1 high-end apartment tower, slated for completion by October 2024. Townhouse units in the adjacent “garden city” area were expected to be finished by September 2024.

However, despite these plans, the site remains eerily quiet. The entrance is sealed off with metal fences, while the interior is overgrown with grass and littered with construction materials, indicating that no construction work has yet resumed as promised.

At a recent press conference, the ciity Department of Construction reported that the Cocobay project was licensed and began construction in 2016 but was halted in early 2022.

Throughout its development, the project encountered multiple complaints and lawsuits related to its real estate business practices. The developer has reportedly resolved most of the disputes with customers.

The department said since July 2024, it has not received any new complaints from the public regarding the buying and selling of properties at the project. The developer has presented a plan for resuming construction, with the remaining unfinished sections expected to be completed by 2024, and the rest by 2025. However, the department also noted that, as of yet, no work has actually resumed on the site.

“The developer has proposed the Department of Planning and Investment to review the procedures for adjusting the project’s investment plan, in line with proposed changes to its intended purpose. The developer hopes to resume construction promptly, in accordance with the city’s direction, in order to resolve ongoing issues related to the project and land use,” a representative from the Department of Construction said.

Once a highly anticipated mega-project with an investment of VND11 trillion (approximately $470 million), the Cocobay Danang includes indoor and outdoor performance stages, a tourist square, a pedestrian street, and a range of condotels and boutique hotels.

It broke ground in June 2016 and was initially expected to be a major economic driver for Danang and the northern region of Quang Nam province. It was heavily promoted, even featuring global football superstar Cristiano Ronaldo as a high-profile ambassador.

However, the project became infamous when it was the first condotel development in Vietnam to “fail” as it was unable to meet its promised 12% annual profit return to investors. This led to a loss of confidence and investment, casting a long shadow over its future.