Revitalizing Saigon’s Golden Land: Ho Chi Minh City Finalizes Plans for 9,000m² Tax Trade Center Redevelopment

The Vice Chairman of Ho Chi Minh City People’s Committee, Bùi Minh Thạnh, has signed a document requesting the Department of Finance, Department of Construction, Department of Agriculture and Environment, Saigon Ward, and Saigon Trading Corporation (Satra) to collaborate on addressing the 9,000 m² plot of land located at 135 Nguyen Hue and 39 Le Loi, Saigon Ward.

This land, once home to the iconic Tax Trade Center, has lain vacant for years.

The city mandates Satra to work with relevant departments to determine the conditions for continued land use and project implementation, adhering to public asset management regulations and the Investment Law.

If conditions are not met, Satra must return the land. Saigon Ward authorities will conduct on-site inspections, prepare revocation documents, and hand over the land to the Ho Chi Minh City Land Fund Development Center for management.

In May, the Department of Agriculture and Environment proposed that the Tax Trade Center land, a public asset, be reclaimed from the Noga Saigon joint venture and placed under Satra’s management.

The department suggested that the most feasible solution for land reclamation is to request the enterprise to voluntarily return the land if it no longer meets project requirements or lacks investment approval from competent authorities.

On June 18, the Office of the People’s Committee issued a notification summarizing the Chairman’s conclusions at a special task force meeting. The meeting addressed challenges related to the Investment Project for a Commercial Service Center, Office, and Hotel at the Tax Trade Center site.

The Department of Agriculture and Environment was tasked with leading efforts to review the land’s legal origins, determine specific reclamation measures, and manage the land according to regulations. They are to propose actions for the city’s consideration, in accordance with legal provisions.

According to the Department of Construction, the land is classified as public property. The state terminated the land lease with the Noga Saigon joint venture, reclaimed the land, and entrusted Satra with compensation, relocation, and direct management responsibilities.

The Department of Finance clarified that Vietnam contributed the land’s usage rights (9,348 m² for 40 years) and the value of the existing building.

However, due to the foreign partner’s failure to meet capital transfer commitments, the project stalled for two years. The Ministry of Planning and Investment (now the Ministry of Finance) issued a decision to terminate and dissolve the Noga Saigon International Trade, Hotel, and Commercial Center ahead of schedule.

Based on these findings, the Department of Agriculture and Environment recommended that the Ho Chi Minh City People’s Committee instruct Satra to review land use conditions. They also urged the Chairman of Saigon Ward to reclaim and hand over the land to the Land Fund Development Center if the enterprise voluntarily returns it, ensuring transparent and efficient management of this prime city center land.

Previously, Satra requested the Ho Chi Minh City People’s Committee to lease the entire public land area (over 7,000 m²) without auction. The company cited investments exceeding VND 487 billion in the preparatory phase, including VND 300 billion for compensation and resettlement.

Additionally, since the Tax Trade Center’s demolition in 2016, Satra has paid annual land rent, totaling over VND 640 billion by 2024.

Before 2016, the Tax Trade Center was a renowned shopping hub in the heart of the city. Its demolition in 2016 made way for a planned 40-story building, featuring a commercial center, offices, and a hotel.

The project was slated to begin in 2017 and finish by 2020, but the site has remained vacant since the demolition.

In 2021, Ho Chi Minh City proposed that the government allow Satra to lease the land without auction to proceed with the project. However, relevant ministries deemed direct land allocation inappropriate due to the land’s state-managed origins.

Furthermore, the commercial center and hotel project falls outside Satra’s core business activities.

In 2010, the Ho Chi Minh City People’s Committee approved Satra as the investor for the Commercial Service Center, Office, and Hotel project at the Tax Trade Center. The 40-story project included six basement levels connecting to the Ben Thanh – Suoi Tien metro line.

On September 30, 2014, traders vacated the site to facilitate the construction of the metro station.

Established in 1880, the Tax Trade Center was situated at the intersection of three bustling shopping avenues: Nguyen Hue, Le Loi, and Pasteur.

It was a premier destination for luxury goods from the UK, France, and other Western countries, catering to Saigon’s elite and wealthy landowners from the six southern provinces.

Since 1997, Satra has managed the center under the name “Saigon General Retail Company.” Despite numerous upgrades, the center’s original state has been largely preserved. It was once ranked among Ho Chi Minh City’s top five favorite shopping destinations.