Khanh Viet Corporation (Khatoco), a cigarette producer based in Khanh Hoa Province, south-central Vietnam, has announced the relocation of its factory to meet production requirements and address environmental concerns raised by local residents.

Khatoco is in the process of dismantling machinery and equipment as it transfers the last manufacturing division from the bustling tourist destination and capital city of Khanh Hoa, Nha Trang City, to the Trang E Industrial Complex, located approximately 15 kilometers away in Cam Lam District.

The firm previously moved two other production units there.

Khatoco’s factory has been in operation in Nha Trang for 39 years, according to Kieu Tuan Hai, the firm’s administrative organization head.

Hai said although renovations and upgrades were made to its divisions and units during the development process, the factory in Nha Trang proved inadequate to meet the production needs.

In that context, local residents have made repeated complaints about the cigarette odor emanating from the factory.

Therefore, in line with the guidelines and policies set forth by the provincial authorities to foster the development of Nha Trang, Khatoco has been voluntarily constructing the infrastructure of the Trang E Industrial Complex since 2017 in preparation for the relocation.

However, the process of factory relocation is time-consuming, and due to the impact of the COVID-19 pandemic, the construction progress and involvement of foreign experts in the project have been slower than expected. 

As a result, people have continued to register more complaints about the unpleasant odor coming from Khatoco’s Nha Trang factory.

With Wednesday’s announcement, Hai expected people would understand the delay while further informing that two production lines of the factory’s last workshop have been successfully relocated, and the remaining ten lines are scheduled to be moved in the near future.

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