Vietnam’s property developer strikes deal with Lotte Group on $2.3bn mega project in Ho Chi Minh City

The project is located in functional zone 2A of the Thu Thiem New Urban Area in An Khanh Ward, spanning six prime land plots, numbered 2-1 through 2-6, with a combined area of approximately 7.54 hectares.

The site is adjacent to Thu Thiem’s central square and central lake, directly connected to the Saigon River Tunnel, and overlooks the Saigon River with panoramic views of the city’s existing downtown skyline.

The development is planned as a multifunctional complex featuring Grade A office towers, a shopping mall, hospitality and service facilities, residential components, and public spaces.

Phat Dat will hold a 35-percent equity stake in the project.

The Vietnamese property developer will jointly develop the residential components located on plots 2-2, 2-4, and 2-6, while independently developing the commercial towers on plots 2-1 and 2-3, as well as the project’s retail podium and underground facilities.

Speaking at the signing ceremony, Shin Man Soo, vice-chairman of Lotte Engineering & Construction, described Lotte Eco Smart City Thu Thiem as one of the group’s flagship projects in Vietnam.

He said Phat Dat’s 35-percent investment represented more than a financial partnership, calling it the beginning of a strategic collaboration that would strengthen the project’s overall value.

He added that Lotte’s international development experience combined with Phat Dat’s deep understanding of the Vietnamese market would provide a strong foundation for delivering a project that meets high international standards while creating long-term value for all stakeholders.

Notably, Vietnamese lender MBBank will provide funding for Phat Dat’s entire equity contribution to the project.

Securing financing at an early stage is expected to strengthen Phat Dat’s financial structure and ensure sufficient capital to fulfill its investment commitments on schedule.

Ha Trong Khiem, deputy CEO of MBBank, said the bank is committed to supporting Phat Dat with comprehensive, flexible, and optimized financial solutions throughout the project’s development.

Phat Dat’s chairman Nguyen Van Dat highlighted the project’s significance in accelerating the development of Thu Thiem as Ho Chi Minh City’s new urban center.

He added that MBBank’s financing commitment provides an important financial foundation that will allow the company to carry out its investment obligations proactively and on schedule.

Market observers view the partnership as an unusual move for a Vietnamese property developer.

Rather than seeking foreign financing for its own project, Phat Dat has joined an international conglomerate as an equity investor in what is expected to become one of Vietnam’s landmark urban developments.

The partnership is expected to enhance the international standing of Vietnamese developers while supporting Ho Chi Minh City’s long-term ambition of transforming Thu Thiem into an international-standard financial and commercial hub.