Quick Takeaways
-
Withdrawal Notification: South Korean firm Lotte Group announced its withdrawal from the Thu Thiem Eco Smart City project on August 20, but hasn’t filed necessary legal paperwork to formalize this, remaining the official investor.
-
Project Overview: The mixed-use development spans 7.45 hectares, with plans for commercial, residential, and public infrastructure, but has stalled in construction due to unresolved legal issues.
-
Investment Changes: Lotte initially planned a VND20.1 trillion ($762 million) investment, later proposing to increase it to VND57 trillion ($2.2 billion) along with requests for capital structure changes and timeline extensions.
-
Current Status: No significant progress has been made since the 2022 groundbreaking, with only fencing and ground leveling completed. City authorities have set the land’s valuation at VND16.19 trillion ($613.7 million).
Lotte’s Withdrawal Notice Raises Questions
South Korean firm Lotte Properties HCMC signaled its intent to withdraw from the Thu Thiem Eco Smart City project in Ho Chi Minh City. On August 20, the company sent a written notice but has not completed the necessary formalities under Vietnam’s Investment Law. Consequently, Lotte still holds the status of official investor.
The mixed-use development spans 7.45 hectares, with plans for commercial and residential towers, alongside public infrastructure. In 2017, Lotte signed the investment agreement and received land allocation in 2022. A groundbreaking ceremony took place in September of that year, yet construction has stalled due to ongoing legal issues.
Financial Implications and Future Prospects
Originally, Lotte aimed to invest around VND20.1 trillion ($762 million) into the project. Recently, it proposed increasing this amount to VND57 trillion ($2.2 billion). During this time, the company also sought modifications to its capital structure, extensions to project timelines, and legal clarifications.
As local authorities approved a land valuation of VND16.19 trillion ($613.7 million) as of June 30, 2025, residents remain hopeful for future advancements. To date, only preliminary work, such as fencing and ground leveling, has occurred. Completion of the project’s technical infrastructure is anticipated by August 2028, promoting a vision of enhanced urban living in the region.
Expand Your Tech Knowledge
Stay informed on the revolutionary breakthroughs in Quantum Computing research.
Stay inspired by the latest discoveries from NASA.
IoTV1
