​$433mn Cocobay mega project in Da Nang remains in limbo

​$433mn Cocobay mega project in Da Nang remains in limbo

Construction of Cocobay Da Nang – a mammoth tourism and entertainment complex project with a total investment of VND11 trillion (US$433 million) in central Vietnam – is currently on hold.

An overview of Cocobay Da Nang, a mammoth tourism, lodging, and entertainment complex project in Da Nang, central Vietnam. Photo: Doan Cuong / Tuoi Tre

An announcement claiming the project would be resumed was released several months ago, but work on Cocobay Da Nang is still stalled.

Many of the complex’s components are entirely empty, while the whole site is eerily quiet.

A representative from the municipal Department of Construction told Tuoi Tre (Youth) newspaper that the project’s investor had sent a report on its progress, but the complex was still frozen.

Thanh Do Investment Development and Construction JSC, the company managing the project, has requested the Da Nang administration to issue certificates of land use rights and ownership of assets attached to land for certain qualified areas of the project. However, local authorities are still in the process of considering this request.

Previously, the project’s investor had announced that it would unilaterally terminate contracts with the customers of the project, prompting its clients to file petitions with local authorities.

The authorities then mandated that the investor meet with its customers and submit a report detailing the implementation of the project.

In April, the company sent a report to the municipal People’s Committee and the municipal Department of Construction which said that it would step up efforts to restart the project.

Specifically, the infrastructure and landscaping work on the site was scheduled to restart on April 15, with completion targeted for late 2024.

Meanwhile, construction in Area HH3, which is planned to include a condotel building, was set to resume on April 26 and is expected to be finished by October this year.

According to its plan, a commercial block with condotel units and luxury apartments, located at Area HH5, would be completed in August 2025.

Many other components were rescheduled to be finished this and next year, but work on all remains at a halt.

The project, which spans 51 hectares, was launched in 2014 and was marketed as a world-class tourism, lodging, and entertainment compound.

After several months of construction, some condotel blocks were completed.

In 2019, the investor put 3,000 condotels and shophouses into service.

However, the firm faced financial difficulties in 2020 and failed to pay profits to 1,700 customers as it had previously pledged an annual profit of up to 12 percent, putting the project at a standstill.

Tuoi Tre News