Nha Trang Sao JSC has been fined VND200m (USD9,500) for illegally encroaching on waters of Nha Trang Bay and violating environmental regulations.

Nha Trang Sao JSC fined for filling up the bay

The decision was issued on January 11 by Khanh Hoa Province's People's Committee.

The committee found Nha Trang Sao JSC did not carry out the environment monitoring process during construction work. The company was fined VND130m and ordered to start the monitoring process immediately.

It found the company illegally encroached on 22,900 square metres of Nha Trang Bay and was fined a further VND70m. Nha Trang Sao JSC was given warning about not publicly posting its environmental management plan at the construction site.

The Nha Trang Sao JSC project was investigated after locals complained the company was reclaiming part of the bay.

Ngo Van Dung, a director of Nha Trang Sao JSC, claimed the company had dredged already dead coral and filled part of the bay with sand and rocks to create an artificial beach, and this had been done with official approval.

In December, Huynh Ngoc Bong, a spokesman for Khanh Hoa Province, said the company said the encroached area was only used as temporary embankment for construction work and the area would be restored after construction was completed.

The construction of Nha Trang Sao, a cultural, entertainment and sport facility, began on October 31. The USD30m project covers 103,568 square metres. It is scheduled to be completed in 2016.