Hundreds of families living near Dong Nai 2 Hydro-power Plant in the Central Highlands town of Lam Dong are living in fear as hundreds of hectares of land erode around them.
Huge cracks have also appeared and large lumps of land have subsided while authorities argue about whether the area is safe for habitation.
Local authorities said the area, which covers Di Linh and Lam Ha districts, was 300 to 600 metres from the reservoir feeding the power plant.
In 2013, landslides and cracks occurred throughout the area shortly after the reservoir was filled.
Dang Quang, a resident of Lien Ha Commune in Lam Ha District, said that 8ha of coffee bushes were totally destroyed when a deep crack appeared. It was 200 metres long and three metres deep.
Many smaller cracks criss-cross the area. Quang's two children have moved to a neighbour's house for safety.
"My wife and I can't sleep well, especially on rainy days," he said.
In Tan Nghia Commune in Di Linh District, 53 hectares of cultivated land has been seriously affected by erosion.
Dieu Van Quang, a resident from Tan Nghia Commune, said he saw a large area of land swept away in front of his house.
He said last Tuesday, heavy rain sent a large area of land sliding for 10 metres. Eight electric poles were pulled along with it.
Luong Van Tu, another resident, said cracks ruined about half of his 2 hectare coffee field. He said the land was worth VND2 billion ($94,330), but now no one wants to buy it.
Le Xuan Tham, director of the provincial Department of Science and Technology, surveyed the problem land in the two districts and came to the conclusion that the nightmare had been created by the water stored in the reservoir.
He suggested that people should stop building houses or staying overnight in the danger area.
Le Anh Tuan, representative of the Trung Nam Hydro-power Plant JSC, who built the dam and power plant, told Tuoi Tre (Youth) newspaper that the company was keeping track of the changing topography.
He said that an environmental impact assessment indicated that the area near the plant was safe.
However, a report last year by the provincial Department of Natural Resources and Environment and the Department of Science and Technology showed that the area was at high risk of a geological catastrophe.
Nguyen Xuan Huyen, who spent two weeks researching land structure in the area, said he had sent a report to provincial authorities stating that the land surface was not solid.
Le Viet Phu, vice chairman of Di Linh District's People's Committee, said the provincial Fatherland Front Committee decided to give VND300 million ($14,150) to each of the 46 affected households in Tan Nghia Commune.
Another 11 families have been moved to safer places. The rest have been told not to stay overnight.
luong van tu, department of science, science and technology, le anh tuan, dong nai, hydro power, power plant, central highlands, lam dong, local authorities, heavy rain, along with, with it, no one, anh tuan
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