Real estate: Lotte pulls out of Vietnam Thu Thiem Eco Smart City project on long delays, soaring costs
Lotte Properties HCMC, a subsidiary of South Korea’s Lotte Group, has moved to terminate its long-delayed Thu Thiem Eco Smart City project in Ho Chi Minh City, VN Express has reported → view source.
The city’s Department of Finance confirmed it received a request from the developer on 20 August to end the investment contract, but said the company has yet to complete the legal procedures required.
Conversely, the Korean business daily Alpha Biz, has noted that Lotte only received a final decision on land-use fees in July 2025, almost eight years after its agreement with the city → view source.
The fee was set at KRW 1 trillion (US$770 million), ten times higher than the company’s initial estimate.
Over the same period, rising costs pushed the overall budget from KRW 1 trillion (US$770 million) to KRW 3.5 trillion (US$2.7 billion).
Lotte sought to bring in external investors and negotiate more flexible payment terms, but city authorities insisted the full fee be paid upfront, Alpha Biz says.
Lotte argued that the lengthy land appraisal process, combined with changes in Vietnam’s legal framework, made the project financially unviable.
Efforts to adjust shareholder structures, extend deadlines and revise financial obligations were all rejected by authorities.
The withdrawal underscores the challenges foreign developers face in Vietnam’s major urban projects, where regulatory delays and surging costs can undermine long-term plans.
The Eco Smart City project, located in the Thu Thiem New Urban Area’s functional zone 2A (now An Khanh Ward), was first proposed in 1997 with an investment plan of more than VND 20.1 trillion or about US$770 million.
