According to the inspection conclusion announced on 14/1, the Goldsand Hill Villa project, owned by Loc Tu Co., Ltd., was approved by the former Binh Thuan Provincial People's Committee in 2011. The project was intended for an eco-tourism area and villas, covering nearly 9 hectares, with a total investment of 140 billion VND, and was expected to be operational by 2020.

As of the inspection in August 2025, the developer had completed site leveling for the entire project, established technical infrastructure, and constructed 16 villas, 5 of which were finished.

Some villas under construction at the Goldsand Hill Villa project, Mui Ne Ward, January 2026. Photo: Khai Nguyen

The Inspectorate determined that the former Binh Thuan Department of Natural Resources and Environment advised the Provincial People's Committee to permit the conversion of over 86,400 square meters of agricultural land. This action was inconsistent with Phan Thiet City's 2017 land use plan and violated the Land Law.

Furthermore, based on a document from the Binh Thuan Department of Construction confirming eligibility to sell future-formed houses, Loc Tu Co., Ltd. engaged in numerous illegal real estate transactions. Specifically, between 2021 and 2025, the company sold 136 of 276 future-formed villas, with a total contract value exceeding 531 billion VND, having already received over 326 billion VND from customers.

The Inspectorate also pointed out that the Department of Natural Resources and Environment later issued a document stating the project had not completed land procedures. However, the Department of Construction merely requested the company to return the previously issued document for cancellation, rather than directly revoking it, which allowed the illegal transactions to continue.

In addition, the Mui Ne Ward People's Committee failed to issue a penalty record despite discovering the developer building 16 villas after the construction permit had expired.

According to the Lam Dong Provincial Inspectorate, responsibility lies with Ho Lam, former director of the Department of Natural Resources and Environment; Xa Duong Thang and Cao Xuan Dung, former directors of the Department of Construction; as well as related units and Mui Ne Ward land officers.

The project is currently delayed by 55 months and is subject to revocation. However, the Inspectorate recommended that the Provincial People's Committee work with the developer to consider adjusting the project in accordance with regulations. Should the company not agree, the case file will be transferred to the Binh Thuan Provincial Police for investigation into signs of violation.

Previously, the Lam Dong Inspectorate uncovered similar violations at other projects in the former Binh Thuan area, including Sentosa Villa, Hon Rom high-end villas, and Hon Rom golf course.

Viet Quoc