According to the Ho Chi Minh City Department of Finance, they received a document from Lotte Properties HCMC (a subsidiary of Lotte Group) on August 20th.
The document stated that the company intended to terminate the contract for the implementation of the Smart Complex project (Thu Thiem Eco Smart City) in Functional Area 2A, Thu Thiem New Urban Area.
Under the Investment Law 2022, if an investor decides to terminate an investment project as per Article 48, Clause 1, Point a, they must follow the termination procedures outlined in Article 57 of Decree 31/2021/NĐ-CP, which details the implementation of certain provisions of the Investment Law.
“However, to date, the Department of Finance has not received the required dossier from Lotte Properties HCMC as stipulated above.”
“Therefore, in principle, Lotte Properties HCMC remains the investor for the Smart Complex project (Thu Thiem Eco Smart City) in Functional Area 2A, Thu Thiem New Urban Area, in accordance with the project’s legal approvals granted by the competent authorities,” stated a representative from the Ho Chi Minh City Department of Finance.
After years of delays, the Smart Complex – Thu Thiem Eco Smart City had its land price approved by Ho Chi Minh City in early July, amounting to 16,190 billion VND.
Lotte Seeks to Terminate Project Contract
In a notification to the Ho Chi Minh City People’s Committee, Lotte Properties HCMC expressed its desire to terminate the contract for the Thu Thiem Eco Smart City project in the Thu Thiem New Urban Area.
The notification claimed that the company had fulfilled its investor obligations since signing the project implementation contract with the Ho Chi Minh City People’s Committee on July 26, 2017, until the completion of land price appraisal on June 30, 2025. However, due to inspection processes and delays in land price appraisal, the project faced significant stagnation.
The project broke ground in 2022 but couldn’t proceed due to unpaid land use fees.
“This led to a significant increase in land use fees, land rent, and total investment costs, compounded by changes in legal policies, making project adjustments essential,” the Lotte notification explained.
To resolve these issues and ensure project progress, the company held meetings with city leaders and relevant departments to discuss extending the land use fee payment deadline and adjusting the investor consortium’s ownership structure to adapt to practical changes.
In June 2025, as the land price appraisal neared completion, the company submitted a proposal to the Chairman of the Ho Chi Minh City People’s Committee, requesting adjustments to the shareholding ratio among Lotte Group subsidiaries and allowing external investors with a maximum 35% stake.
They also sought clarification on the legal aspects of additional charges (as per Decree 103/2024) related to land use fees and rent, and adjustments to the land use fee payment timeline.
On July 14, 2025, the Office of the Ho Chi Minh City People’s Committee issued a conclusion after a meeting between the Chairman and the company, stating that Lotte must comply with land-related financial obligations as per the law and work with the Department of Finance to submit proposals and recommendations (regarding additional charges, investor structure, etc.) to the People’s Committee by July 10, 2025.
According to the plan, Thu Thiem Eco Smart City is located near the central square, to the right of the Saigon River tunnel entrance from Thu Duc to Saigon.
Lotte asserted that following the Ho Chi Minh City People’s Committee Office’s notification, on July 17, 2025, the company sent a letter to the Department of Finance, stating that if their proposals were not approved, the project could not continue.
On July 23, 2025, the company received a land use fee and rent payment notice from the Tax Department, triggering financial obligations for land use fees.
The company announced its inability to proceed with the project, including paying land use fees, and requested contract termination and the return of the land allocation and lease decision issued by the Ho Chi Minh City People’s Committee on August 24, 2022.
Prolonged Smart Complex Project
The Smart Complex – Thu Thiem Eco Smart City project in Functional Area 2A of the Thu Thiem New Urban Area is considered the most prime project on the Thu Thiem peninsula, located near the Saigon River tunnel exit, opposite the under-construction Empire City.
In early July, Ho Chi Minh City approved the land price for Lotte Group’s Thu Thiem Eco Smart Complex at 16,190 billion VND.
After settling financial obligations, the investor will receive a land certificate, ensuring legal land status before proceeding with construction permits.
Project rendering featuring the 50-story Lotte Eco Smart City tower.
On March 23, 2021, the Ho Chi Minh City People’s Committee granted Lotte Properties HCMC a government resolution to develop the Thu Thiem Eco Smart City Complex, with a total investment of nearly 1 billion USD (excluding compensation and site clearance costs).
Lotte planned to invest in this “super” project over approximately 72 months, with a 50-year operation period. The investor would arrange the funding.
On September 2, 2022, Lotte Group held a groundbreaking ceremony for the project, including hotels, residential areas, and commercial spaces on a 7.45-hectare site.
The project features 5 basement levels and 60 above-ground floors, with a total floor area of 680,000 m². Lotte Group stated that the design of Lotte Eco Smart City draws inspiration from Vietnam’s natural wonders, such as Ha Long Bay and terraced fields, to create a harmonious space between humans and nature.
However, after the groundbreaking, the project stalled due to unpaid land use fees.
According to the 2024 approved architectural plan, the project will be built on nearly 7.5 hectares, with a development area of about 5 hectares, including a financial center, commercial services, and multifunctional residential areas. The highlight is the 50-story Lotte Eco Smart City tower, expected to complete by 2028.
The Thu Thiem Eco Smart City website describes it as a large eco-smart complex in the Thu Thiem New Urban Area, Ho Chi Minh City. The developer is Lotte Group (South Korea) in partnership with three Japanese companies: Mitsubishi Corporation, Mitsubishi Estate Co., Ltd, and Toshiba Corporation.
The project includes high-end apartments, commercial centers, offices, and hotels, with a total investment of 2.2 billion USD.
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