The Go Da Trang Industrial Cluster in An Nhon Ward covers nearly 17 hectares and was established in 1999. After 27 years of operation, it houses businesses producing incense, mechanical products, packaging and recycled plastics, raising concerns over environmental pollution.
The Go Da Trang Industrial Cluster has operated for 27 years and is now overcrowded, with several potentially polluting industries. (Photo: Doan Cong)
An Nhon Ward authorities said rapid urbanisation had brought residential neighbourhoods increasingly close to the industrial cluster, making it unsuitable for the area's long-term urban development plans.
The former Binh Dinh Province approved plans in 2023 to relocate businesses from the site and redevelop the area for services, tourism and urban development.
A project to relocate 48 businesses and production facilities was approved in May 2025. However, its substantial cost exceeded the local budget, prompting provincial authorities to take over implementation.
Le Quang Thinh, director of the An Nhon Ward Management Board, said an initial compensation package worth around VND 176 billion had been approved for 42 businesses.
Provincial authorities have authorised the transfer of VND 87 billion for compensation payments, while most affected businesses have agreed to the relocation plans and support policies.
Officials are reviewing land lease records for the remaining businesses to determine compensation entitlements, particularly where rent was paid upfront for the entire lease term.
Once the businesses have relocated, the Go Da Trang site will be redeveloped for services, tourism and urban use. The Gia Lai Land Fund Development Centre has been assigned to oversee the project.
Meanwhile, construction is being accelerated at the 19-hectare second phase of the Tan Duc Industrial Cluster, in the former Nhon My Commune area, to accommodate relocating businesses.
Land clearance is 97 per cent complete, while a centralised wastewater treatment plant has begun operating. Internal roads and other technical infrastructure are more than 50 per cent complete.
Of the project's more than 10 hectares of industrial land, around four to five hectares already have completed infrastructure and are ready for businesses to begin building factories.
Developers aim to complete all infrastructure works by December.