Lotte Advances $870 Million Thu Thiem Project as Ho Chi Minh City Resolves Key Obstacles

The latest developments of the Thu Thiem Eco Smart City project were unveiled during a 40-minute meeting on the afternoon of October 3, 2025. Mr. Jun Sung Ho, CEO of Lotte Properties HCMC Co., Ltd., confirmed that the company had submitted a written request to terminate the project on August 20.

However, the conglomerate’s stance shifted following two key actions from the city: a direct meeting with HCM City People’s Committee Chairman Nguyen Van Duoc on August 29, and a report submitted to the Prime Minister on September 12, advocating for the resolution of investor challenges.

CEO of Lotte Properties HCMC Co., Ltd., Jun Sung Ho, speaking at the meeting. Photo: Hoang Hung. HCM City’s Electronic Information Portal

“We extend our gratitude for the encouragement to proceed with the project. We deeply appreciate the city leadership’s attention to foreign investors, particularly those from South Korea, and Lotte specifically. This underscores the city’s welcoming investment environment,” stated Mr. Jun Sung Ho, highlighting how these actions bolstered the group’s confidence.

HCM City People’s Committee Chairman Nguyen Van Duoc speaking at the meeting. Photo: Hoang Hung

Representing HCM City at the meeting were Chairman Nguyen Van Duoc, four Vice Chairmen, and leaders of relevant departments. During the session, Lotte outlined their challenges and presented three specific proposals.

First, they requested permission to adjust the shareholding ratio among Lotte group subsidiaries to restructure internal capital. Second, they sought approval to attract external investors up to a maximum of 35% to mobilize additional resources. Third, Lotte proposed a waiver of the 5.4% land use surcharge.

Regarding tax obligations, Mr. Phan Van Dung, Deputy Director of the HCM City Tax Department, noted that the company had exceeded the land use payment deadline, resulting in a late payment penalty of VND 120 billion as of October 3.

The Tax Department representative also recommended that when the city submits the surcharge waiver proposal to the Government, it should include a request to exempt the VND 120 billion penalty, as the decision-making authority lies with the Government due to the absence of specific regulations.

On behalf of the city government, Chairman Nguyen Van Duoc engaged with Lotte representatives and department leaders to address each proposal. He confirmed that the city had submitted a document to the Central Government seeking approval for all three investor requests.

He emphasized the city’s commitment: “HCM City remains steadfast in its dedication to listening, resolving challenges, and partnering with strategic investors.” The meeting concluded with mutual agreement, paving the way for project resolution.

Photo: Luong Y/VTC News

The Thu Thiem Eco Smart City project is located in functional area 2A, spanning a total area of 7.45 hectares. The development comprises 11 towers, each rising up to 60 stories, featuring a mixed-use complex including a financial center, commercial spaces, hotels, and high-end residential areas. Despite its groundbreaking in September 2022, the project had been stalled for nearly three years due to legal complications before these recent developments.