The administration of Da Nang City has decided to relocate residents living near two steel plants found to be causing pollution in the area.

The cost of relocation will be covered by the steel plants themselves.

The People’s Committee of Da Nang has concluded talks with locals concerning the relocation of residents living near the steel plants of Dana Australia and Dana Italia in the city’s Hoa Lien Commune, Hoa Vang District.

According to Da Nang’s deputy chairman Ho Ky Minh, residents living in Van Duong 2 Town, located to the southwest of the steel plants, had been complaining about air and water pollution caused by the plants’ activities.

After discussions with the city’s administration, the affected residents have agreed to the relocation, set to be carried out later this year, Minh said.

The city has been holding regular meetings to answer any questions from residents, as well as speeding up the paperwork to set the plan in motion.

According to the relocation scheme, residents within a 300-meter radius of the steel plants will be displaced in the second half of 2017, and moved into new homes within the first six months of 2018.

The city has demanded Dana Australia and Dana Italia each cover 50 percent of the costs for the displacement and compensation to the affected residents, an amount estimated to be around VND243 billion (US$10.71 million).

The plants were also given a licence to remain in operation for no more than 15 years from now, after which they will have to shift production toward light industry in order to reduce pollution, according to the administration’s decision.

Over those 15 years, the plants are to upgrade their technology to minimize the environmental impact in accordance with Vietnamese law.