Phuc Son Nha Trang Project Faces Prolonged Delays Amidst Ongoing Legal and Administrative Hurdles

On April 22nd, the Office of the People’s Committee of Khanh Hoa Province issued a conclusion report from Deputy Chairman Tran Hoa Nam’s meeting with investors concerning the Nha Trang City Center – New Urban Area – Commercial – Financial – Tourism Project, developed by Phuc Son Group Corporation. The report detailed the concerns and proposals from investors, shedding light on the protracted nature of the project’s development and the complex challenges it faces.

The provincial leadership acknowledged the concerns and shared difficulties expressed by the investors, who are also buyers of land plots within the Phuc Son Nha Trang project located in the former Nha Trang Airport area. Khanh Hoa Province has been actively reporting and proposing solutions to the central government regarding stalled projects, including the Phuc Son Nha Trang development. This matter has been brought to the attention of the Prime Minister, who has directed its review in Resolution No. 16/2026/NQ-CP.

However, the Khanh Hoa Provincial People’s Committee indicated that resolving the land issues will require significant time and cannot be achieved in the short term. Specialized agencies are continuing to review and consult on solutions in accordance with legal regulations. Regarding the appeals, the provincial committee requested that investors exercise their right to appeal and participate in the appeal review process to protect their legitimate interests. Concurrently, the province committed to organizing a dialogue between Phuc Son Group Corporation and the investors before the appeal hearing.

According to the report, the developer was requested to arrange for representatives to attend the dialogue in April 2026 in Nha Trang. The investors’ representatives were also expected to be present to facilitate an effective exchange.

Phuc Son Group Corporation was further urged to strengthen management and protection of the project site to prevent deterioration and resource wastage during the resolution period. Additionally, they were asked to consider measures to address the travel needs of residents and report on the implementation progress.

Provincial leadership stated that they would continue to direct the resolution of stalled projects, aiming to unlock investment resources and contribute to the socio-economic development of the region while ensuring political security and social order.

Investors Voice Concerns Over Phuc Son Nha Trang Project

Earlier, on April 16th, a direct dialogue took place at the headquarters of the Khanh Hoa Provincial People’s Committee, attended by representatives from various departments, relevant agencies, and investors who had purchased land plots at the Phuc Son Nha Trang project.

During this meeting, investors presented several key concerns. A significant point of contention was the ruling by the Central Military Court of Region 5, which stated that "obstruction" is not a "party with rights and obligations." This ruling has caused considerable unease among the investors.

Investors also requested that the Khanh Hoa Provincial People’s Committee issue official documents to central authorities with jurisdiction, urging them to protect the rights of the "third party," and to request Phuc Son Group Corporation to continue fulfilling its contractual obligations and handing over land as committed.

Furthermore, investors raised concerns about the need for prompt resolution of issues related to the Phuc Son Nha Trang project. They emphasized the importance of accelerating the resolution of land disputes, strengthening management and protection of the project site to prevent degradation and losses, addressing the needs of the local population, and organizing direct dialogues between the developer and investors to resolve protracted disputes.

Large-Scale Project Facing Multiple Issues

The Nha Trang City Center – New Urban Area – Commercial – Financial – Tourism Project, with Phuc Son Group Corporation as the developer, covers an area of nearly 62 hectares and has an estimated registered capital of approximately 10,000 billion VND. The project was allocated land by the Khanh Hoa Provincial People’s Committee under Decision No. 3262/QD-UBND dated October 28, 2016.

According to the master plan, this area was designated as a high-class urban center with over 1,100 land plots, including residential and commercial zones, alongside new urban and service areas. To date, many plots have had cooperation agreements for investment or have been transferred.

However, the project implementation has encountered numerous obstacles, particularly concerning the handover of land to buyers. This land parcel is also implicated in cases of mismanagement and improper land use exceeding the approved zoning.

In early 2026, the Central Military Court of Region 5 reviewed an appeal case, which overturned decisions related to several leaders of the developer company and associated personnel.

Background and Chronology of the Phuc Son Nha Trang Project

The Phuc Son Nha Trang project, officially the Nha Trang City Center – New Urban Area – Commercial – Financial – Tourism Project, was envisioned as a landmark development in the coastal city of Nha Trang. Approved in 2016, the project aimed to transform a significant parcel of land, formerly occupied by the Nha Trang Airport, into a vibrant hub for residential, commercial, financial, and tourism activities. The sheer scale of the project, spanning nearly 62 hectares with a registered capital in the tens of trillions of Vietnamese Dong, underscored its potential to significantly impact the local economy and urban landscape.

The initial phase involved land allocation and the establishment of cooperation agreements for investment and land transfers. Many of these transactions proceeded, leading to the acquisition of land plots by numerous individual and corporate investors. The promise of a modern, integrated urban environment, complete with amenities and commercial spaces, attracted significant interest.

However, as the project progressed, a series of complex issues began to surface. A primary concern revolved around the timely and complete handover of land plots to the buyers. Delays and alleged breaches of contract by the developer, Phuc Son Group Corporation, led to growing frustration among investors. Compounding these issues were allegations of mismanagement and improper land utilization within the project area, reportedly exceeding the approved zoning regulations.

A pivotal moment in the project’s troubled history occurred in early 2026. The Central Military Court of Region 5 reviewed an appeal case that challenged previous decisions. This review led to the overturning of rulings concerning several key leaders of the developer and associated individuals, signaling a potential shift in the legal landscape surrounding the project. This judicial intervention brought to light the depth of the administrative and legal complexities involved.

The subsequent actions by the Khanh Hoa Provincial People’s Committee, including the issuance of the conclusion report and the organization of dialogues, indicate a concerted effort to address the multifaceted problems. The Deputy Chairman’s meeting with investors on April 22nd was a direct response to the escalating concerns and the need for a clear roadmap forward. The provincial committee’s acknowledgment of the time required for resolution highlights the intricate nature of land dispute resolution and administrative adjustments.

Investor Grievances and Demands

The investors involved in the Phuc Son Nha Trang project have articulated a series of deep-seated grievances. Their primary demand centers on the perceived lack of legal recognition for their rights as buyers and stakeholders. The ruling by the Central Military Court of Region 5, which reportedly dismissed the notion of "obstruction" as not belonging to a party with rights and obligations, has been a significant point of contention. Investors argue that their persistent efforts to secure their investments and ensure project completion constitute legitimate actions to protect their interests, not mere obstruction.

They have formally requested the Khanh Hoa Provincial People’s Committee to engage higher authorities, including central government bodies, to advocate for the protection of their rights. This appeal is framed as a necessity to safeguard the interests of what they refer to as the "third party"—the end-buyers who have invested significantly in the project. Furthermore, investors are pressing Phuc Son Group Corporation to honor its contractual commitments, specifically regarding the timely handover of land and the fulfillment of agreed-upon terms.

The investors are also calling for a more proactive approach from the provincial administration in resolving the pending issues. This includes expediting the settlement of land disputes, implementing stringent measures to protect the project site from further degradation or unauthorized use, and ensuring that the development ultimately serves the needs of the local population. The emphasis on organizing direct dialogues between the developer and investors underscores their desire for transparency and a clear path toward resolution, aiming to prevent prolonged disputes and facilitate a constructive outcome.

Official Response and Path Forward

The Khanh Hoa Provincial People’s Committee, in its official report, has acknowledged the complexity of the situation and the time required for a comprehensive resolution. Deputy Chairman Tran Hoa Nam’s engagement with investors signifies the provincial government’s commitment to addressing the concerns. The committee’s directive to Phuc Son Group Corporation to enhance site management and preservation measures reflects an immediate step to mitigate further losses and prevent the project’s deterioration.

The provincial authorities have indicated that specialized agencies are actively reviewing the situation and consulting on legal frameworks to find solutions. The commitment to continue directing the resolution of stalled projects aligns with a broader provincial strategy to unlock investment potential and foster sustainable socio-economic growth. The emphasis on maintaining political security and social order suggests an understanding of the potential social ramifications of prolonged project delays and disputes.

The request for Phuc Son Group Corporation to arrange for representative attendance at dialogues and for investors to participate in the appeal process highlights a structured approach to conflict resolution. The planned dialogue between the developer and investors before the appeal hearing is intended to facilitate communication and potentially de-escalate tensions.

The provincial committee’s call for Phuc Son Group Corporation to strengthen management and protection of the project site, prevent deterioration, and consider measures for residents’ travel needs demonstrates a pragmatic approach to immediate concerns. The commitment to report on implementation progress indicates a degree of accountability and ongoing oversight.

Analysis of Implications

The ongoing challenges faced by the Phuc Son Nha Trang project have significant implications for the real estate market in Khanh Hoa Province and for investor confidence. The protracted nature of the disputes raises questions about the effectiveness of regulatory oversight and contract enforcement in large-scale development projects. The involvement of judicial bodies, such as the Central Military Court of Region 5, underscores the legal intricacies and the potential for protracted litigation.

The financial implications for investors are substantial, as they have tied up capital with the expectation of timely returns through property development or resale. Delays not only affect their financial planning but also their long-term investment strategies. The impact on the local economy could also be considerable, as a stalled major project represents missed opportunities for job creation, revenue generation, and urban development.

The case also highlights the critical need for robust due diligence by both developers and investors, as well as clear and enforceable contractual agreements. The provincial government’s active role in mediating disputes and seeking solutions reflects the challenges of balancing economic development objectives with the protection of citizens’ rights and legitimate business interests. The resolution of the Phuc Son Nha Trang project will likely serve as a case study for future development initiatives in the region, emphasizing the importance of transparency, accountability, and timely resolution of conflicts. The future of this ambitious project hinges on the successful navigation of its complex legal, administrative, and financial challenges, with the hope of ultimately realizing its envisioned potential for Nha Trang.