The planned mining area in Vinh Loi Village had sparked opposition from local residents, who said the forest played a vital role in water supply and environmental protection.

Residents said the area served as a watershed providing irrigation water for more than 28 hectares of rice fields as well as domestic water for households in the village.

They also warned that mining activities could damage the environment, affect local livelihoods and put additional pressure on transport infrastructure in the area.

Local authorities said concerns raised by residents had been reported to provincial agencies before the proposal was officially rejected.