The houses are located north of Bac Lieu-Ca Mau River. The erosion has affected a 170-metre section of the river bank.
Thirteen houses have collapsed due to the erosion. Meanwhile, another 83 have seen cracks.
The Centre for Natural Disaster Prevention, Search and Rescue is inspecting the situation to consider measures.
Local authorities have been instructed to place warning signs in the area and evacuate affected households to other places to ensure safety.
The province will also set up a taskforce to deal with erosion.
