People gathered at Dana-Italy and Dana-Australia to protest against their wastewater discharging on February 26
The decision was announced on Thursday morning after a meeting between the committee and people in Hoa Vang District's Hoa Lien Commune a day earlier.
The Dana-Italy and Dana-Australia have been required to temporarily stop production from February 28, the announcement said, adding that the Hoa Vang District People's Committee and the local Department of Natural Resources and Environment would supervise their activities.
Other activities including administration, transportation or trade can still continue but will be monitored by local authorities.
The committee has also asked relevant agencies to find a proper location to move the two factories by March 2.
On February 26 evening, hundreds of people in Hoa Lien Commune gathered at the two factories, blocking the gates.
According to local people, the two factories have seriously polluted the environment for the past 10 years with their wastewater. The problems had been reported to leaders of the city who pledged to move 50% of the households to other places by the end of 2017.
At a meeting with local people on February 28, deputy chairman of Danang City People's Committee, Ho Ky Minh, said that it was very difficult to find a solution to the case.
"Relocating the plants and the households will both face lots of challenges due to our lack of land," Minh said. "Meanwhile, closing the plants means that we have to pay huge amounts of compensation."
Minh's explanation, however, made local people angry as they said the city should choose to protect its people rather than the plants.