Lotte signals intent to exit $762mn Vietnam smart city project, no formal withdrawal yet

The South Korean-owned firm, a subsidiary of Lotte Group, sent written notice on August 20 regarding its withdrawal from the Thu Thiem Eco Smart City project, located in Functional Area 2A of the Thu Thiem New Urban Area.

However, as of this week, the company has not filed the required paperwork under Vietnam's Investment Law, meaning it remains the official investor, the department told the press on Thursday.

The mixed-use development covers 7.45 hectares, with over five hectares designated for commercial, residential and service towers, and the remainder for public infrastructure. 

Lotte signed the investment agreement in 2017 and received land allocation in 2022. 

A groundbreaking ceremony was held in September 2022, but construction has yet to begin due to unresolved legal issues.

In early 2025, the company began technical infrastructure work, expected to be completed by August 2028. 

To date, only fencing and ground leveling have been carried out.

City authorities approved a specific land valuation of VND16.19 trillion ($613.7 million) for the site as of June 30, 2025.

Lotte initially planned to invest VND20.1 trillion ($762 million) in the project but later proposed raising the figure to VND57 trillion ($2.2 billion). 

It also requested changes to capital structure among Lotte subsidiaries, extensions to project timelines, and legal clarifications.

Lotte Properties HCMC was established in October 2017 with registered capital of VND4.02 trillion ($152.4 million), contributed by four Lotte affiliates: Lotte Shopping with 40 percent, Lotte Hotel with 30 percent, Lotte Asset Development with 15 percent, and Lotte Engineering & Construction with 15 percent.