A Billion-Dollar Project: Business Eyes Lotte’s Spot, Finance Department Responds

The Ho Chi Minh City Department of Finance has responded to the status of the Eco Smart City project in Thu Thiem, following an announcement by the investor, Lotte Properties HCMC Co., Ltd., to terminate the project contract. The department confirmed receiving a referral slip from the City People’s Committee Office, forwarding a document from the joint venture between Sunshine Group JSC and DIA Investment JSC.

This joint venture has proposed to continue the Eco Smart City project in functional area 2A of the Thu Thiem New Urban Area, originally undertaken by the Lotte Group.

On September 24th, the Department of Finance issued a letter to the joint venture, stating that there is currently no basis to consider their proposal.

According to the Ho Chi Minh City Department of Finance, on August 20, 2025, they received a document from Lotte Properties HCMC Co., Ltd., announcing the termination of the Eco Smart City project contract in An Khanh Ward.

Under the 2020 Investment Law, if an investor decides to terminate a project, they must follow the prescribed procedures for ending investment activities. However, the Department of Finance has not yet received the required documentation from Lotte Properties HCMC Co., Ltd.

“Therefore, in principle, Lotte Properties HCMC Co., Ltd. remains the investor for the Eco Smart City project in functional area 2A of the Thu Thiem New Urban Area, as per the project’s legal approvals granted by competent authorities,”

the Department of Finance’s statement affirmed.

Previously, on August 20, Lotte Properties HCMC Co., Ltd. sent a letter to the Ho Chi Minh City People’s Committee, requesting to terminate the contract for the Thu Thiem Eco Smart City project in the Thu Thiem New Urban Area.

The company stated that it had fulfilled all investor obligations since signing the project contract on July 26, 2017, until completing land price appraisals on June 30, 2025. However, due to inspection delays and land price appraisal setbacks, the project has faced significant stagnation.

This has led to substantial increases in land use fees, land rent, and overall investment costs, compounded by changes in legal policies, making project adjustments inevitable.

The company announced its inability to proceed with the project, including fulfilling land use fee obligations, and requested contract termination along with the return of the land allocation and lease decision issued by the Ho Chi Minh City People’s Committee on August 24, 2022.

Not only does the Sunshine – DIA joint venture aim to step in as the investor for the Eco Smart City project, but it has also submitted bids for 3,790 resettlement apartments in the Thu Thiem New Urban Area.

According to the Ho Chi Minh City People’s Committee Office, numerous real estate companies are interested in bidding for the 3,790 resettlement apartments in the Thu Thiem New Urban Area, located in blocks R1, R2, R3, R4, and R5.

The joint venture believes these apartments can be converted to commercial units, leased, sold, or integrated into a mixed-use complex combining commerce, services, and housing.

Additionally, the company emphasizes its ability to leverage capital advantages and strategically distribute products to the market in phases.

Two other real estate companies with multiple housing projects in Ho Chi Minh City, Son Kim Land JSC and Bcons Land JSC, have also registered to bid for the 3,790 apartments and submitted development and exploitation plans.

On August 21, the Ho Chi Minh City People’s Committee Office announced a plan to auction 3,790 resettlement apartments in the Thu Thiem New Urban Area (An Khanh Ward). These budget-funded apartments will be auctioned following public asset management and usage procedures.

The city plans to divide the apartments into two blocks for auction: 2,220 units in blocks R1, R2, and R3, and 1,570 units in blocks R4 and R5.

The purpose of the sale is for commercial housing.

Previously, Ho Chi Minh City attempted to auction these 3,790 apartments four times, all unsuccessfully. The failures were attributed to the large number of units being auctioned simultaneously, which only financially robust investors could participate in, prolonging or derailing the auctions.

Additionally, after years of vacancy, the apartments have deteriorated, reducing their appeal and complicating transfers.

Another factor was the high starting price: the first auction was set at 8.8 trillion VND, rising to 9.1 trillion VND in the second attempt, with the third and fourth auctions hovering around 9.9 trillion VND.