The Dalat Area Construction Investment Project Management Board said on September 26 that work had started on embankments and slopes around the lake in Xuan Huong-Dalat Ward.
The project will repair and reinforce 5,120 metres of lakeside embankment and another 510 metres around Thuy Ta and Bich Cau islands.
It will also restore the lake's bottom drainage outlet to improve water-level regulation.
The work is aimed at reducing erosion and the risks of landslides, flooding and pollution, while improving the lakeside landscape and public spaces for residents and visitors.
The construction and equipment package is valued at more than VND 92 billion (USD 3.5 million), with completion scheduled for November 2028.
The lake's embankment was built in 1998 and has undergone several repairs, but sections have deteriorated, with damage and subsidence reported.
Xuan Huong Lake dates back to 1919, when the French built a dam across Cam Ly Stream to create an artificial lake. After two dams were damaged by storms and floods in 1932, Dalat authorities rebuilt the Ong Dao Dam in stone between 1934 and 1935.
The lake was renamed Xuan Huong from Grand Lac in 1953 and was recognised as a national scenic site in 1988. It has since become one of Dalat's best-known landmarks.