Lotte Aims to Propel the Thu Thiem Eco Smart City Project Forward

During a 40-minute meeting with the Chairman of the Ho Chi Minh City People’s Committee, Nguyen Van Duoc, and various departments on the afternoon of October 3, Mr. Jun Sung Ho, CEO of Lotte Properties HCMC, shared insights.

Mr. Jun Sung Ho, CEO of Lotte, in discussion with Ho Chi Minh City leaders on October 3. Photo: An Phuong

Mr. Jun Sung Ho revealed that on August 20, the conglomerate submitted a request to terminate the project due to challenges. However, following a direct meeting with the Chairman of the Ho Chi Minh City People’s Committee ten days later and a proposal to the government in mid-September, the group regained confidence to continue its investment.

Lotte representatives stated they would proceed with the Thu Thiem Eco Smart City complex project if the government approves their proposals to resolve existing issues.

During the meeting, Mr. Jun Sung Ho presented three key requests for the Ho Chi Minh City People’s Committee’s consideration. These included adjusting the ownership ratio among member companies, attracting external investors up to 35%, and waiving the additional 5.4% land use levy.

Chairman Nguyen Van Duoc presiding over the meeting on October 3. Photo: An Phuong

Chairman Nguyen Van Duoc acknowledged the company’s requests and pledged to report them to the central authorities for appropriate resolution. The city also directed the Department of Finance and the Tax Department to include proposals for waiving additional land use fees and allowing capital restructuring in the submission to the government. City leaders welcomed Lotte’s continued partnership and commitment to overcoming challenges and completing the project on schedule.

“The city remains committed to listening, resolving issues, and supporting strategic investors,” he stated.

The Thu Thiem Eco Smart City project, located in functional area 2A (now An Khanh Ward, Ho Chi Minh City), was proposed in 1997 with an investment of over 20.1 trillion VND. The complex is planned to include a financial center, services, and a multi-functional residential area. In July 2017, Lotte signed the project contract with the Ho Chi Minh City People’s Committee and held a groundbreaking ceremony in September 2022. The project features 11 towers, each 50 stories high, spanning over 7.4 hectares, and was once considered a key highlight in Thu Thiem’s central area.

Nearly eight years after signing the investment contract and three years after the groundbreaking, this billion-dollar project remains stalled due to financial obligations and legal procedures. In June, the project’s land value was approved at over 16.19 trillion VND.

Previously, Lotte had repeatedly urged the city to resolve issues, including adjusting ownership ratios among member companies, raising external capital, modifying financial obligations, and extending land use fee payment deadlines, but these requests were not approved. These challenges led to their request to terminate the contract and halt the project two months ago.