On August 2, Hue City Inspectorate just announced the inspection conclusion of the Hue Specialty and Traditional Products Production and Processing Zone Project, pointing out many violations in the project implementation process and proposing to terminate investment activities according to regulations.
According to the Specialized Inspection Conclusion No. 1465, the project is invested by Hitec Co., Ltd., approved for investment policy by Thua Thien Hue Provincial People's Committee (now Hue City) in 2019 with a total capital of 10 billion VND, implemented at Thuy Phuong Industrial Cluster (now Thanh Thuy ward), on an area of about 4,474m2.
According to the approved schedule, the project will be completed and put into operation in the second quarter of 2021. However, to date, the project has not been implemented as planned.
Hue City Inspectorate concluded that currently, the continued implementation of the project is no longer in accordance with the provisions of law. According to the 2024 Land Law and the 2025 Investment Law, the project falls under the case of having to terminate investment activities.
The cause was identified as many objective and subjective factors such as people not agreeing with the compensation plan, investors not actively coordinating to remove obstacles, the project once had to be temporarily suspended according to the conclusion of the Provincial People's Committee, while the infrastructure of Thuy Phuong Industrial Cluster has not been fully invested.
Notably, the inspection conclusion pointed out a series of violations in the project implementation process such as: implementing procedures and procedures for deciding on investment policies not in accordance with regulations; slow completion of procedures to terminate investment activities; issuing decisions to recover land for projects not subject to state land recovery; advising on approving investment research locations not in accordance with land law regulations.
At the working session on May 29, 2026, Hitec Co., Ltd. agreed to self- terminate the project operation, wishing to continue implementation when Thuy Phuong Industrial Cluster is invested in completing infrastructure.
Based on the inspection results, the Chief Inspector of Hue City proposed that the Chairman of Hue City People's Committee direct the Department of Finance and Thanh Thuy Ward People's Committee to organize a review of collective and individual responsibilities related to violations and shortcomings.
Thanh Thuy Ward People's Committee is requested to cancel decisions on land acquisition and approve compensation plans issued that are not in accordance with regulations; consider leasing land back to businesses if they fully meet legal conditions when the industrial cluster infrastructure is fully invested.
In addition, Hue City Inspectorate requested Hitec Co., Ltd. to complete the procedures to send the decision to terminate project operations to the investment registration agency for handling according to regulations.
