During a September 22nd session reviewing the Draft Law on Thrift and Waste Prevention by the National Assembly’s Standing Committee, Mr. Phan Văn Mãi, Chairman of the Economic and Financial Committee, expressed concerns that the draft law lacks sufficient flexibility in empowering accountable individuals within agencies and units.
Mr. Mãi cited the recent case of Lotte requesting to terminate and return the Thủ Thiêm Eco Smart City project.
Entrance to the Thủ Thiêm Eco Smart City project.
“Previously, we agreed on a land use fee within a certain range, but due to delays, additional late fees amounting to several trillion dong were incurred. The delays resulted from indecision on your part, yet I am held responsible, leading to the project’s return,” Mr. Mãi stated.
According to Mr. Mãi, the return of the project means the land may remain unused for years, representing a significant waste. Furthermore, this situation negatively impacts the business environment and investor confidence, which is another major loss. Therefore, he urged the Draft Law on Thrift and Waste Prevention to include robust measures to empower competent authorities and hold leaders accountable.
The Thủ Thiêm Eco Smart City project, with an investment capital of 20.1 trillion dong, is developed by Lotte Properties HCMC (a subsidiary of South Korea’s Lotte Group). It is constructed on a 74,513 m² plot, with approximately 50,000 m² dedicated to project development.
The complex comprises 5 basement levels and 60 above-ground floors, integrating a hotel, residential area, commercial spaces, and smart technology to enhance value. Upon completion, it aims to contribute to the formation of a financial, banking, commercial, and service hub in the new Thủ Thiêm Urban Area.
Recently, Lotte Properties HCMC submitted a document to the Ho Chi Minh City People’s Committee and the Department of Finance, announcing the termination of the contract for the Thủ Thiêm Eco Smart City project in Functional Area 24 of the new Thủ Thiêm Urban Area (An Khánh Ward).
In the document, Lotte Properties HCMC emphasized its patience over 8 years (from the signing of contract No. 4647/HD-UBND with the Ho Chi Minh City People’s Committee on July 26, 2017, to the completion of land price appraisal on June 30, 2025) and full compliance with investor obligations as per legal regulations.
Interior of the Thủ Thiêm Eco Smart City project.
However, due to the impact of government inspections and delays in land price appraisals, the Thủ Thiêm Eco Smart City project faced severe stagnation. This led to substantial increases in land use fees, land rent, and total investment costs, compounded by changes in legal policies necessitating project condition adjustments.
Lotte Properties HCMC stated it could no longer proceed with the project, including fulfilling land use fee obligations. This decision followed a comprehensive evaluation and careful discussions among investors.
The Ho Chi Minh City People’s Committee recently approved a specific land price for the Thủ Thiêm Eco Smart City project, totaling 16.19 trillion dong. During a recent socio-economic press briefing, the Department of Finance confirmed Lotte Properties HCMC’s termination notice. On August 20, the Department of Finance received the project termination application.
However, Lotte Properties HCMC has yet to submit the project termination dossier as required by the Law on Investment. Thus, Lotte Properties HCMC remains legally recognized as the project investor until all legal procedures are completed.
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 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.
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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.
