The Thu Thiem Eco Smart City Complex project, located in Functional Area 24 of the Thu Thiem New Urban Area (An Khanh Ward), is developed by Lotte Properties HCMC, a subsidiary of South Korea’s Lotte Group. Pictured is the project viewed from the intersection of Mai Chi Tho and To Huu streets.
The project’s facade as seen from To Huu Street.
The project is planned on a 74,513 m² plot, with a development area of approximately 50,000 m². The structure includes 5 basement levels and 60 above-ground floors, integrating a hotel, residential area, commercial spaces, and smart technology to enhance value.
Upon completion, the project will contribute to establishing a financial, banking, commercial, and service hub in the Thu Thiem New Urban Area.
However, after eight years since signing contract No. 4647/HD-UBND with Ho Chi Minh City’s People’s Committee (HCMC PC), Lotte Properties HCMC recently announced its termination of the Thu Thiem Eco Smart City project. On August 20, HCMC’s Department of Finance received the termination request.
To date, Lotte Properties HCMC has not submitted termination documents as required by the Investment Law. Therefore, the company is still legally considered the project investor until formal procedures are completed.
Lotte Properties HCMC cited government inspections and land price appraisal delays as significant factors stalling the project’s progress.
These issues led to substantial increases in land use fees, rental costs, and overall investment, compounded by legal changes necessitating project adjustments.
After careful consideration, Lotte Properties HCMC concluded it could not proceed, including fulfilling land payment obligations. Photo: DNVN.
The company requested termination of contract No. 4647/HĐ-UBND with HCMC PC and the return of land lease decision No. 2862/QĐ-UBND issued on August 24, 2022. Photo: DNVN.
Lotte Properties HCMC emphasized that the decision followed thorough evaluations and careful discussions among investors.
Notably, HCMC PC approved a land price of VND 16,190 billion for the project, with a total investment of VND 20,100 billion. Photo: DNVN.
Previously, on September 2, 2022, Lotte Group held a groundbreaking ceremony for the project, but the site remains vacant, surrounded by fencing.
Massive Waste as Lotte Returns Thu Thiem Eco Smart City Project
On September 2, 2022, Lotte Group held the groundbreaking ceremony for Thu Thiem Eco Smart City, only to later request a halt to the project. With the project’s suspension, this prime land risks lying dormant for years, a significant waste of resources. Moreover, this decision undermines the business environment and erodes investor confidence, compounding the loss.
Lotte Halts Development of Prime ‘Golden Land’ Project, Thu Thiem Eco Smart City
Lotte Properties HCMC, the developer behind the Thu Thiem Eco Smart City project, has officially announced its inability to proceed with the development. This includes fulfilling financial obligations such as land use fee payments. Consequently, the company has requested termination of the project implementation contract and the return of the land allocation and lease decision.
Lotte’s Billion-Dollar Exit Plan from Thu Thiem: What Does HCMC’s Finance Department Say?
Introducing the Smart Complex – Thu Thiem Eco Smart City, a cutting-edge development within the 2A functional area of the new Thu Thiem Urban Area. Recently approved by Ho Chi Minh City, the land price for this innovative project stands at a staggering 16,190 billion VND, marking a significant milestone in the city’s urban development.
Lotte Officially Terminates the Thu Thiem Eco Smart City Project
The Department of Finance revealed this information during a press conference on Ho Chi Minh City’s socio-economic status held on the afternoon of September 18th.
Lotte Seeks to Exit $870 Million Thu Thiem Eco Smart City Project After Nearly a Decade
Despite signing an investment contract eight years ago and holding a groundbreaking ceremony three years later, the Thu Thiem Eco Smart City project remains largely undefined, with no tangible progress to date.
