In an October 30 report to the provincial People's Committee, the department recommended terminating the Thac Ba Ecotourism Area project in Tanh Linh Commune.
The project, developed by Green Dragon Construction Investment Joint Stock Company, received investment policy approval from the former Binh Thuan authorities in August 2017, with amendments approved in February 2018.
It covers 9.8 hectares, including 9.49 hectares of special-use forest within Nui Ong Nature Reserve, and has a registered investment of VND 25 billion (approximately USD 950,000).
Under the approved timetable, recreational facilities, restaurants and infrastructure were scheduled for completion in 2017-2018, followed by hotel facilities in 2018-2019.
However, the project has yet to meet its investment objectives, and the planned hotel facilities have not been built.
According to the department, the developer has not completed land lease procedures, obtained construction planning approval or building permits, conducted an environmental impact assessment, or provided the required investment security deposit.
It has also not been selected as a forest environment lessee or signed the necessary lease agreement.
During an inspection on September 14, authorities recorded several structures, including wooden bridges, a stage, a grocery shop, a restaurant, bathrooms, toilets, accommodation facilities, a park and a warehouse.
These had been built on open land within the special-use forest without completing the required legal procedures or obtaining the necessary permits.
In July 2018, the former Binh Thuan authorities fined the company VND 30 million for improperly collecting fees and ordered it to surrender more than VND 280 million in unlawfully obtained proceeds. The company has yet to comply with the decision.
The Department of Finance said the project was more than 24 months behind schedule, had failed to fulfil its investment objectives and remained subject to outstanding legal and financial obligations.
It also noted that the investment arrangement originally approved was no longer consistent with the 2017 Forestry Law, under which ecotourism activities in special-use forests must follow an approved plan and comply with forest environment leasing regulations.
The department therefore recommended that the provincial People's Committee Chairman consider approving the termination of the project, initiating the necessary procedures and revoking its investment policy approval.
If the project is terminated, the Nui Ong Nature Reserve Management Board will prepare an ecotourism, resort and recreation plan and organise the selection of a forest environment lessee in accordance with regulations.
Green Dragon would remain eligible to participate in the selection process if it meets the required conditions.
Relevant authorities would also review the legal status and condition of existing structures and address any identified violations.