Lotte reverses course, seeking to revive Eco Smart City project in HCMC

Lotte Properties HCMC Co., Ltd. has expressed its wish to proceed with its smart city project in Ho Chi Minh City’s Thu Thiem New Urban Area, after having sought to terminate it.

Jun Sung Ho, CEO of Lotte Properties HCMC Co., Ltd. under South Korean chaebol Lotte, noted the wish at a working session with the municipal People’s Committee on Friday.

Accordingly to the city's Department of Finance, on August 20, 2025, it had received a document from Lotte Properties HCMC Co., Ltd., informing about the termination of the project - Lotte Eco Smart City. The department, however, did not mention the reason for the move.

At the Friday working session, Jun stressed that Lotte and other Korean investors have received strong attention from local authorities.

Regarding the project, he said the group’s stance shifts following the city's two movements - its meeting with Chairman Nguyen Van Duoc on August 29 and a city report to Prime Minister Pham Minh Chinh on September 12 seeking to ease hurdles for the investor.

The CEO said Lotte is seeking approval to adjust the shareholding structure among its member companies for internal restructuring, permission to bring in external investors with stakes of up to 35% for capital addition, and an exemption from the 5.4% supplementary land-use fee.

Duoc, meanwhile, reiterated the city’s commitment to supporting both domestic and foreign investors, including Lotte.

HCMC acknowledges Lotte Properties HCMC’s efforts to advance the project and will work alongside the company to help resolve obstacles and move development forward, he noted.

Duoc asked Lotte to work with city departments to find solutions and push ahead with the project.

“We hope that foreign investors, including Lotte, will keep faith in the business environment in HCMC and Vietnam, and join the city in its drive to become a regional and global hub,” he said.

The Lotte Eco Smart City project broke ground in September 2022, yet it has not taken shape to date, reportedly due to legal entanglements including "exorbitant" land use fees.

The VND20.1 trillion ($761.8 million) project will cover 50,000 square meters, comprising a shopping mall, a hotel, office buildings, serviced apartments and a residential complex. It will include five underground floors and 60 above-ground ones, using smart technologies.

Group chairman Shin Dong Bin then said the Lotte Eco Smart City marked the start of Lotte's investment expansion drive in Vietnam.