Long-delayed Thủ Thiêm project revived with $2.27 billion investment plan

Long-delayed Thủ Thiêm project revived with $2.27 billion investment plan

South Korea's Lotte Group and Vietnamese property developer Phát Đạt have signed an investment partnership to develop the Lotte Eco Smart City project in HCM City's Thủ Thiêm New Urban Area, reviving one of the city's largest long-delayed real estate developments.

The Lotte Eco Smart City project in Thủ Thiêm, HCM City, which has been delayed for years due to legal and financial hurdles. — VNS Photo Bồ Xuân Hiệp

The mixed-use project, now valued at around VNĐ60 trillion (US$2.27 billion), represents a nearly threefold increase from the original approved investment of more than VNĐ20.1 trillion.

The Military Commercial Joint Stock Bank (MB Bank) will finance Phát Đạt's equity contribution to the project, completing the financing structure for the development, the companies said.

Located on a 7.54-hectare site in the core area of Thủ Thiêm, the project forms part of HCM City's plans to develop a new international financial and commercial hub on the eastern bank of the Sài Gòn River.

The project was first studied in the late 1990s and formally awarded to Lotte in 2017. Although a groundbreaking ceremony was held in 2022, construction was delayed for several years due to unresolved legal procedures and financial obligations.

The project regained momentum after HCM City approved its land valuation in June 2025, allowing the developer to complete financial obligations and proceed with implementation.

Under the new investment structure, Phát Đạt will hold a 35 per cent stake in the development.

According to the developers, the project will comprise Grade A office space, retail facilities, hotels, serviced accommodation, residential towers and public spaces integrated within a mixed-use urban complex. The original master plan envisions 11 towers of up to 50 storeys.

The revival of the project comes as Việt Nam's largest city seeks to accelerate the development of Thủ Thiêm urban area, which authorities have identified as the future site of the city's planned international financial centre and a key destination for foreign investment.

Lotte Eco Smart City is one of the South Korean conglomerate's largest investments in Việt Nam and among the most significant foreign-backed urban development projects currently under implementation in HCM City. 

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