As reported by Lao Dong Newspaper, at the sludge reservoir of the Alloy Steel Plant invested by Thai Nguyen Black Metallurgy Joint Stock Company, a dike break occurred, causing a large amount of waste to spill out, posing a potential risk of environmental pollution.
The reservoir is located on a hillside in Nam Hoa commune and was built to serve the cooling water circulation system of the factory with a capacity of 100,000 tons/year, when the embankment broke and the sludge spilled downstream.

According to Lao Dong Newspaper's reporter in mid-October 2025, the area near the reservoir will have a thick, thick layer of gray mud flowing down to the cultivated land below.
Many plots of cultivated land and surrounding fish ponds have been flooded with sludge, covered with covered surfaces, thickly coated with scum, and give off a strong burning smell, and have not yet been collected or treated.
The thick mud flooded down the flow of the residential area, burying the roads, gardens and fish ponds of dozens of households in Goc Thi and Ao Sen hamlets.
Having a house not far from the sludge tank, Mr. Nguyen Van Thanh (character's name has been changed), Goc Thi hamlet, Nam Hoa commune, said that at the time of the incident, a large amount of mud spilled into the yard and garden.
In some places, the mud is nearly 20cm thick, giving off a strong burning smell. "People don't know what this mud is, they just see an unpleasant black smell, so they are very worried, hoping that the authorities will soon have a solution so that we can work with peace of mind again," Mr. Thanh added.

Mr. Nguyen Van Son - Secretary of the Nam Hoa Commune Party Committee confirmed that there was a broken reservoir that caused a large amount of mud to spill into the environment.
According to local leaders, the initial cause was determined to be prolonged heavy rain leading to flooding, causing the reservoir's embankment to break.
"Immediately after the incident, we directed the local authorities to coordinate with the village and the factory operator to take mud samples to send for independent testing.
In case of chemical influence, it will be reported to superiors for handling. If there is no, the investor, Black Supply Joint Stock Company, will be assigned to fix it for the people," the commune leader added.
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