Lotte’s Return of Thu Thiem Project: A Significant Waste
On the morning of September 22nd, during the 49th session of the National Assembly’s Standing Committee, which discussed the Law on Thrift and Waste Prevention, Chairman of the Economic and Financial Committee Phan Văn Mãi stated that the draft law lacks sufficient flexibility in empowering responsible individuals within agencies and units.
Mr. Phan Văn Mãi also pointed out the absence of mechanisms allowing leaders of public service units to decide on the most effective use of state-assigned assets.
He emphasized the need for bolder policies to empower leaders at grassroots, provincial, and ministerial levels to make decisions that benefit the overall system. This, he argued, is a key approach to saving resources and combating waste.
As an example, Mr. Mãi cited Lotte’s recent decision to terminate and return the Lotte Thu Thiem project.
Chairman of the Economic and Financial Committee Phan Văn Mãi (right).
According to him, Vietnam previously agreed to a land use fee within a certain range, but delays led to additional late payment charges of several trillion dong. Since these delays were not the company’s fault, they decided to return the project.
Lotte’s return of the project will leave the land unused for an extended period, which Mr. Mãi described as a significant waste. Additionally, this decision impacts the investment environment and erodes investor confidence, compounding the loss, he stressed.
Thu Thiem Eco Smart City Project
Previously, the Ho Chi Minh City Department of Finance announced that on August 20, 2025, they received a letter from Lotte Properties HCMC, a subsidiary of South Korea’s Lotte Group, requesting termination of the contract for the Smart Complex Project (Thu Thiem Eco Smart City) in functional area 2A of the new Thu Thiem Urban Area (now An Khánh Ward, HCMC).
The Thu Thiem Eco Smart City project is located on a 74,513 m² plot, with approximately 50,000 m² designated for development. Proposed in 1997, the project has an investment capital of over 20.1 trillion dong.
Thu Thiem Eco Smart City is designed with 5 basement levels and 60 above-ground floors, featuring a financial hub, services, and a multi-functional residential area.
Despite signing the investment contract eight years ago and holding a groundbreaking ceremony three years ago, the Thu Thiem Eco Smart City project remains largely undeveloped.
The project’s financial obligations for land amount to 16.190 trillion dong. HCMC authorities have held numerous meetings to address issues, particularly regarding financial obligations, to issue land use certificates to investors before construction permits can be obtained.
During implementation, Lotte Properties HCMC raised several concerns, including increasing the total investment to 57 trillion dong, adjusting the capital structure and contribution ratios among Lotte’s joint venture members, extending deadlines, and resolving outstanding legal procedures.
In late June 2025, the company’s leadership met directly with the HCMC People’s Committee to discuss these issues, but the meeting’s outcomes have not yet been disclosed.
Lotte’s Withdrawal from Thu Thiem Project Deemed a Waste by Mr. Phan Van Mai
Mr. Phan Văn Mãi highlighted that Lotte’s request to halt its project in Thủ Thiêm could lead to significant waste, as the land may remain unused for years, and negatively impact the investment and business environment.
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.
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