Whistleblowing on the Unpermitted Constructions in the Billion-Dollar Project

On August 29, sources from the Management Board of Thua Thien-Hue Industrial and Economic Zone reported that several constructions in phase 2 of the Kanglongda Hue Factory project were built without a construction permit.

The Management Board has ordered the investor, Kanglongda Vietnam Technology Protection Company (Kanglongda Vietnam), to halt construction for inspection and evaluation, and to propose solutions, including possible demolition if the constructions are found to be inconsistent with the detailed planning.

According to the Management Board, the Kanglongda Hue Factory project was first granted an investment registration certificate on September 26, 2019, and a certificate of change on August 9, 2022.

The project covers an area of about 35.6 hectares, divided into 3 phases, with a total investment of over VND 4,812 billion. The project aims to build a factory to produce disposable gloves, multi-functional protective gloves, polyethylene fibers, and a research center for disposable gloves, polyethylene fibers, and multi-functional protective gloves.

According to the Management Board, the Kanglongda Hue Factory has basically completed phase 1, with an investment of about VND 2,200 billion, and is in the trial operation stage.

However, in phase 2 of the project, although no construction permit has been granted by the competent authorities, the investor has directed the contractor to construct many items without a permit.

As observed by Tien Phong reporters, many large-scale constructions and factories have been built in the Kanglongda Hue Factory (phase 2) without a construction permit, including warehouses, dormitories, canteens, parking lots, 75-ton boilers, 130-ton boilers, coal warehouses, wastewater treatment systems, and production lines.

After detection, the Management Board ordered the investor to stop constructing these unpermitted buildings.

“Regarding the illegal constructions in phase 2, the Board will inspect and review them. If these constructions are consistent with the detailed planning at the 1/500 scale and the project’s feasibility study report, we will acknowledge and grant a construction permit according to Article 81 of Decree 16/2022/ND-CP dated January 28, 2022, of the Government on administrative sanctions for construction violations. Otherwise, we will order their demolition,” said the Management Board.

The Management Board added that in the following time, they will continue to inspect, coordinate with related agencies to inspect, record, and propose penalties in the field of investment. After the penalties are fulfilled, the Board will consider adjusting the investment progress and granting a construction permit.

Previously, Kanglongda Vietnam had been administratively sanctioned by competent authorities for constructing buildings without a construction permit.

Specifically, the People’s Committee of Phong Dien district issued a decision to sanction Kanglongda Vietnam with a fine of VND 130 million for organizing the construction of a series of works without a construction permit as prescribed in lot CN 05, Phong Dien Industrial Zone.

In addition to the fine, Kanglongda Vietnam was also forced by the People’s Committee of Phong Dien district to stop construction of the unpermitted works. The company was also fined VND 23 million by the Police Department for Fire Prevention, Fighting, and Rescue for constructing the project not in accordance with the approved fire prevention and fighting design.