Photo courtesy of VnExpress

Authorities on Phu Quoc have withdrawn approval for an unfinished Sheraton resort and ordered its developer to demolish the abandoned structures and clear the beachfront site within four months.

The project is among more than 20 developments in the island’s special administrative zone whose investment approvals have been revoked because of prolonged delays, according to Nguyen Thanh Tung, head of the Phu Quoc Economic Zone Management Board.

Development stalled despite an extension

Vien Dong Phu Quoc Co Ltd received initial approval for the project in 2013, with the investment policy revised in 2023. Construction began on several beachfront elements in 2019 but stopped soon afterwards.

The developer cited disruption caused by the Covid-19 pandemic and received a one-time extension. It nevertheless failed to meet the revised timetable and was unable to continue the project, which is now more than two years behind schedule.

The nearly three-hectare site lies in the former Cua Lap area of Duong To Commune. It faces Tran Hung Dao Street, the main route linking Duong Dong with Phu Quoc International Airport and the southern Bai Truong resort area, while the other side fronts the sea.

Five-star plans left as exposed concrete

The proposed five-star resort was designed with more than 35,000 square metres of floor space and about 300 guest rooms. Plans included a hotel tower, convention centre, restaurants, spa, sports areas, children’s facilities and two swimming pools.

Only the reinforced-concrete frame of the six-storey hotel was completed. Interior work and resort facilities were never built, leaving exposed structures surrounded by weeds.

Authorities say the revocation programme is intended to reduce land waste, improve the island’s appearance and prepare Phu Quoc to host the 2027 APEC Economic Leaders’ Week.

What it means for foreigners in Vietnam

Visitors are unlikely to face an immediate disruption because the abandoned property never opened. However, the clearance order forms part of a broader effort to reshape prominent areas of Phu Quoc ahead of a major international event.

Foreign property buyers, tourism operators and investors should treat project approvals and completion schedules as essential due-diligence issues. A well-known hotel brand or prime beachfront address does not by itself guarantee that a development will be completed or retain its investment approval.

31 July 2026

They should do this in Thailand. Way too many abandoned buildings that are an eyesore. ie: Waterfront, Several on Pratumnak hill and throughout the city. Give them a deadline and even a 2 year extension for really good reasons. If they can’t finish then they have to knock it down and bring the area back to its original state.

Phu Quoc's development fell victim to the double whammy of Vietnam's own deep anti-corruption drive followed by covid. The subtle power shift behind the CPV resulted in corruption prosecutions in very high offices that in addition to the demise of early Phu Quoc development, lost Hanoi's entry into the F1 race calendar shortly before their inaugural 2021 season.

I worked there a couple of years ago and noted the empty commercial units with faded paint and cracked walls.

I first visited the island around 20 years back in transit to some offshore work, when it was a totally undiscovered and very green gem.

20 minutes ago, NanLaew said:

Phu Quoc's development fell victim to the double whammy of Vietnam's own deep anti-corruption drive followed by covid. The subtle power shift behind the CPV resulted in corruption prosecutions in very high offices that in addition to the demise of early Phu Quoc development, lost Hanoi's entry into the F1 race calendar shortly before their inaugural 2021 season.

I worked there a couple of years ago and noted the empty commercial units with faded paint and cracked walls.

I first visited the island around 20 years back in transit to some offshore work, when it was a totally undiscovered and very green gem.

20 minutes ago, NanLaew said:

I had a fun time there two years ago, and the South of the island is way more developed than the North.

It was a wonderful experience, lovely hotel (The Seashells resort and Spa) good fun and I had a great time.

However, I think claims it is pristine or the top Island in South East Asia, as claimed in many travel brochures, I find exaggerated.

Good, but not THAT good.