On December 3rd, the Lam Dong Provincial Inspectorate announced the findings of a specialized inspection regarding the Hon Rom Golf Course Project in Mui Ne Ward, developed by S.I Development LLC.
According to the inspectorate’s conclusion, the project received its investment certificate in 2007, covering nearly 197 hectares with a total capital of over 548 billion VND. The project aimed to develop a golf course complex, ecological forest, hotel, and villas. However, as of the inspection date, the project had been delayed by 13 years and 6 months, qualifying it for revocation under the Investment Law.
Rendering of a villa in the Hon Rom Hill Luxury Villa and Resort Project.
By the end of Q1 2025, S.I Development LLC owed 17.5 billion VND in land rental fees, excluding late payment penalties. Despite initial land clearance, basic infrastructure construction, and auxiliary works, prolonged stagnation and substantial tax arrears have posed risks of resource wastage and land misuse.
The Lam Dong Provincial Inspectorate attributed the project delays and violations to negligence and regulatory misguidance by former Binh Thuan provincial authorities.
Specifically, in 2009, the Department of Natural Resources and Environment advised the Binh Thuan People’s Committee to lease over 322,000 m² of land inconsistent with the investment certificate’s purpose, violating the 2003 Land Law. In 2016, the department further advised reclassifying over 25,000 m² from commercial production land to urban residential land, contradicting Phan Thiet City’s land use plan and breaching the 2013 Land Law. By 2022, the Binh Thuan People’s Committee rectified these errors by reverting land classifications, significantly impacting project timelines.
The inspectorate also criticized the former Mui Ne Ward People’s Committee for lax oversight, allowing S.I Development LLC to construct the Sunny Villa Resort without permits since 2009.
Despite the project’s 13-year delay and eligibility for revocation, the Lam Dong Provincial Inspectorate recommended allowing S.I Development LLC to proceed under special mechanisms, given that state authorities partially caused the violations.
However, the inspectorate urged the province to mandate the developer promptly settle the 17.5 billion VND in land rental fees and late penalties. Additionally, the developer must collaborate with relevant departments to adjust the project and allocate resources to meet committed deadlines.
For regulatory bodies, the inspectorate demanded accountability from the Department of Natural Resources and Environment, Department of Planning and Investment, and the former Mui Ne Ward People’s Committee. Relevant agencies must reassess land use needs and investor capabilities before advising further policies.
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