According to locals, this firm took advantage of the project to dredge the Cua Dai passage to explore sand for export, causing serious coastal erosion. After nearly three months of implementation, ships cannot get to the open sea while the coast was eroded, harming a lot of aqua cultural lakes of local people.

They not only require this firm to stop dredging but also claim damage compensation for their losses.

In the last two days, high tide damaged at least five shrimp lakes, causing losses of nearly VND1.5 billion ($75,000). Mr. Quoc Pham's family was bare-handed now after his shrimp pond was submerged, more than 65,000 shrimp of 1.5 months old going out to sea. The losses is estimated at over VND300 million ($15,000).

A shrimp pond is submerged because of tidal erosion.

According to the local authorities, the Ngoc Viet Co., Ltd was licensed to dredge the Cua Dai and collect salty sand from July 30. To date, this company has sold more than 1.2 million tons of salty sand to Singapore.

Mr. Nguyen Hiep, 80, said: "Previously there was a mound which was over 1,000m from the coast. This mound worked as a breakwater. Since this company explored sand, this mound has disappeared. We have lost a breakwater and suffered from severe waves from the sea. If this continues, the current residential areas along the coast will be wiped out."

The company’s sand exploring activities have been suspended for several days. On Monday, the local authorities had a dialogue with local people. At the meeting, the people asked the authorities to cancel this dredging project.

Quang Ngai provincial authorities have decided to suspend this project for assessing the environmental impacts and handled coastal erosion in Nghia An commune. The company has been also asked to pay compensation to the families whose shrimp ponds were damaged by the dredging.