The People's Committee of central southern Phu Yen Province plans to ban aquaculture farming in Vung Ro area of Dong Hoa District.
The 1,460-ha zone will be turned into a sea port.
Those who are currently farming there are required to cease their business before October 2013.
About 460 households and businessmen currently raise lobsters and other fish in the area.
The locality said lax management had led to spontanous farming in Vung Ro, polluting the area.