The central coastal province, home to popular resort town Nha Trang, is completing bidding procedures for work to start on the project on the Cai River in late September.
The Cai River originates from Gia Le Hill in Khanh Hoa, running 79 km through Khanh Vinh and Dien Khanh Districts and then Nha Trang before reaching the sea.
The dam project was approved in late 2017 at the cost of VND760 billion, including VND212 billion provided by the state and the rest from the province.
Its purpose is to guarantee a freshwater source for 500,000 locals, mostly in Nha Trang and partly in Dien Khanh District, and 2,000 ha of agriculture land.
It will be built in the form of a pillar dam and have five valves. It will include an additional canal lock.
Above the dam will be a bridge 400 m long with 10 spans measuring 33 m long and 26 m wide each.
Chau Ngo Anh Nhan, director of Khanh Hoa Provincial Development Project Management Unit, said the project is set to complete in 2022 to prevent salt intrusion during the dry season and flooding during the rainy season.