Many key projects are behind schedule
According to the Hue City Urban Development and Construction Investment Project Management Board, some key projects in the area are facing difficulties in implementation, affecting disbursement progress and completion plans.
Notably, the To Huu extended road project to Phu Bai airport has a total investment of more than 1,143 billion VND, expected to create a connecting axis from the center of Hue City to Phu Bai International Airport, reducing the load on National Highway 1A and expanding urban space in the South.
However, the project progress has not met requirements. Site clearance work of more than 60ha affects 821 households in Thanh Thuy, Huong Thuy and Phu Bai wards. Package No. 20, about 3.49km long, has only been handed over about 70% of the site; many sections are not eligible for construction due to compensation, land origin identification and resettlement arrangement.
According to the Project Management Board, in the first quarter and April of 2026, the construction progress of this package has not reached the committed plan due to high and scarce fuel and material prices. Some households have received money but are slow to hand over the site. More worrying is package No. 21 with a contract value of more than 558 billion VND, which is seriously behind schedule. Although about 96% of the site has been handed over, many construction items are still sluggish. From January to April 2026, the realized value only reached from 25 - 67% compared to the monthly commitment. The total volume of slow progress is up to more than 36 billion VND.
The Project Management Board assessed that the main reason comes from the slow implementation of construction by some contractors, especially Dong Tam Group Joint Stock Company. To date, this enterprise has only implemented about 13.3/193.3 billion VND, equivalent to nearly 6.9% of the contract volume.
Not only the transportation project, but also the Thua Thien - Hue Culture and Sports Square project with a total investment of 196 billion VND is also behind schedule in the stadium renovation package. According to reports, although the project has been extended until May 30, 2026, it has only reached about 49% of the contract value so far.
Strongly handle violating contractors
The Project Management Board informed that it is implementing many solutions to remove difficulties and handle responsibilities of relevant units.
Regarding site clearance, the Project Management Board is coordinating with localities to accelerate the determination of land prices, complete compensation procedures, arrange resettlement and relocate technical infrastructure to soon hand over clean ground to contractors.
For construction units that are behind schedule, the investor has applied penalties for contract violations.
On June 16, leaders of the Project Management Board admitted that at package No. 21, Dong Tam Group Joint Stock Company was slow to construct for a long time. The investor has repeatedly issued documents reminding and requesting to speed up the construction progress, but the contractor still did not implement the commitments made. Therefore, to date, the investor has issued 2 decisions to fine this company with a total amount of 411 million VND for violating the construction progress according to the contract. Currently, the investor is completing procedures to issue a decision to terminate the contract with Dong Tam Group Joint Stock Company due to contract violations. The investor will confiscate more than 10.2 billion VND to ensure the performance of the contract and recover more than 42.5 billion VND of advances remaining.
For the Thua Thien - Hue Culture and Sports Square project, the investor also agreed to fine An Bao Construction and Trading Joint Stock Company more than 31 million VND for violating the contract schedule.
