Under a decision issued on August 19, the provincial authorities allowed Hoan Cau Dalat JSC to continue leasing land for the King Palace project, under special mechanisms aimed at resolving long-delayed projects affected by land-related violations that occurred before the 2024 Land Law took effect.
The decision does not waive previous violations, with the company required to complete all procedures and obligations related to investment, land, construction, planning, the environment and finance.
The operator said on Friday that it was preparing the complex for visitors and expected to reopen later in August.
Palace I, set on more than 18 hectares of pine-covered hills, was built in 1940 in a European architectural style. The site is closely associated with former emperor Bao Dai and later served as a retreat for leaders of the former South Vietnamese government.
Lam Dong Province leased the land and forest to Hoan Cau Dalat in 2014 for 50 years to develop the VND 700-billion (USD 26.6 million) King Palace project. About VND 100 billion was spent restoring Palace I and its villas.
The attraction opened to visitors in September 2015 after the company renovated the palace, villas, gardens, reception areas and other facilities, while assembling thousands of period artefacts.
The project was later halted following a 2020 Government Inspectorate conclusion that identified violations involving the leasing of state-owned buildings and land without the required auction.
Lam Dong terminated the project in 2021 and in April 2024 ordered the company to stop operations and hand over the property and land for the province to manage and prepare for a leasing auction.
The prolonged closure left parts of the complex deteriorating, with damaged ceilings, mould and moss reported across several buildings.
Local authorities said allowing the project to resume would help preserve and make better use of the historic site while requiring the operator to meet its legal and financial obligations.
The reopening is also expected to restore one of Dalat's well-known tourist attractions and diversify the city's tourism offerings.
