Deputy Prime Minister Nguyen Thien Nhan has approved a proposal by the host province Khanh Hoa to back out of hosting the Miss World 2010 contest, the government office said Friday.

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Miss World 2009 Kaiane Aldorino (C)

RAAS's withdrawal meant Khanh Hoa had to find new sponsors for the US$10 million licensing fee to stage the event.

Since the province was not willing to spend public money on the event, it had no choice but to back out of the arrangement, deputy chairman Le Xuan Than, said.

In September 2008, the government had authorized Khanh Hoa and RAAS to organize the global beauty contest.

But in November, Hoang Kieu, President of RASS, unilaterally announced that RASS would move the event to the town of My Tho in the Mekong Delta province of Tien Giang because he said businesses in Khanh Hoa had been uncooperative.

However, rumors said the real reason for the move was because RASS had been criticized for plans to build a 1,500-hectare resort as the event venue in Khanh Hoa. Critics said the project would destroy Nha Trang Bay’s environment.

Other rumors said Kieu had moved it to Tien Giang, where Kieu is the primary stockholder in the province’s major tourism firm, because of his personal connections in the area.

Source: Thanh nien