The barrier was erected by Hoan Cau Nha Trang, one of two companies formed after the 2011 split of the original Hoan Cau Corporation, which had been overseeing the Song Lo tourism and entertainment project in Khanh Hoa Province since 2000.
Tensions flared earlier this year when the other offshoot, Hoan Cau Diamond Bay Resort, began constructing walls to divide the shared beachfront development. In response, Hoan Cau Nha Trang sealed off the entire coastline with barbed wire and deployed private security guards to enforce the blockade.
The dispute over management rights to the sea surface stems from the companies' failure to clearly divide responsibilities after their separation.
At an April 29 meeting with the provincial Department of Agriculture and Environment, Hoan Cau Diamond Bay Resort criticized the barricade as disruptive and unjustified, arguing it harms their business operations.
Hoan Cau Nha Trang defended the action as a countermeasure against the construction of walls by their former partner.
Local authorities have condemned the barbed wire fence, warning that it negatively impacts both the environment and public access to the beach. The department has formally asked the Khanh Hoa People’s Committee to intervene and order its removal.
Nguyen Ngoc Chinh, chairman of Phuoc Dong Commune People’s Committee, said Hoan Cau Nha Trang has agreed to dismantle the wire and pledged to complete the removal by May 10.