Lotte Eco Smart City Thu Thiem Project Officially Clears “Administrative Bottlenecks”

After more than 8 years of stagnation, the key Lotte Eco Smart City Thu Thiem project in Functional Zone 2A (Thu Thiem) has seen decisive changes in capital structure and legal status. This opening a new development phase for the future “financial icon” of Ho Chi Minh City.

Approval of Capital Restructuring: A Boost from External Investors

According to the latest information, the Ho Chi Minh City People’s Committee has officially approved the proposal from the developer: Lotte Properties HCMC Co., Ltd. The core points of this approval include:

• Stake Transfer: Lotte is permitted to transfer up to 35% of its shares to external strategic investors.
• Internal Restructuring: Approval to change the capital ownership ratios among subsidiaries within the Lotte Group ecosystem.

This move is considered a turning point that helps the project resolve liquidity issues and attract more capable international partners, creating momentum to restart the project after a long wait.

Implementation of Financial Obligations Under the 2024 Real Estate Law

Despite receiving administrative incentives to improve the investment environment, the Vietnamese government maintains strict management principles:

• No Tax Exemptions: Lotte’s request to waive additional levies and land use fees caused by procedural delays was rejected.
• Compliance with New Regulations: All financial obligations must be performed in accordance with the amended Land Law of 2024.
• Non-transfer Commitment: Reaffirming the 2017 commitment – Lotte is not allowed to transfer the project as a whole during the construction period.

Scale and Progress Challenges of the “20 Trillion Mega-Complex”

The Eco Smart City project is not just a simple apartment complex but an international-scale mixed-use complex:

• Location: Functional Zone 2A, Thu Thiem New Urban Area (the central core).
• Scale: 74,513 m².
• Total Investment: Approximately 20.1 trillion VND (equivalent to 1.13 billion USD).
• Product Structure: Financial center, mixed-use commercial services, and high-end residential complex.

Current Challenge: With a 50-year operating term starting from 2017, the fact that the project has consumed 8 years of waiting forces the developer to accelerate the construction progress to ensure the return recovery structure and maintain asset value.

Potential “Candidates” in the 35% Stake Transfer Wave

The market is recording close interest from large local real estate enterprises regarding this 35% stake. Among them, entities such as Phat Dat Coporation, SonKim Land are being mentioned as leading candidates. The participation of local partners with strong domestic networks is expected to help the project adapt better to the new market regulations.

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