Lotte Abandons $900M Eco Smart City Project in HCMC Amidst Disputes
Lotte Properties HCMC Co., Ltd. has officially ended its $900 million Lotte Eco Smart City project in Ho Chi Minh City's Thu Thiem New Urban Area, with a termination notice received by the municipal finance department on August 20, 2025. This decision comes amidst ongoing disputes over land use fees and financial liabilities, affecting another major project in the area, Empire State Building.
The Empire State Building project, valued at $1.2 billion, has been largely stagnant since 2019 due to unresolved financial liabilities. Recently, Ho Chi Minh City authorities rejected Empire State Building LLC's petition to reconsider an additional land use fee of over VND8.8 trillion ($333.27 million). This fee, more than double the initial VND3.5 trillion ($132.55 million) paid in 2017, was reassessed by a valuation council, adding over VND5 trillion ($189.4 million) to the original fee. Empire State Building LLC warned that this inflated obligation could push its liabilities into billions of U.S. dollars and risk international disputes.
The Lotte Eco Smart City Complex project, led by South Korean conglomerate Lotte Group, broke ground in September 2022 but has yet to take shape. Its termination follows reports of legal entanglements, including the issue of inflated land use fee obligations. The project, awarded a 50-year lease in 2016, was planned to include residential towers, offices, and an observation tower, with around 1,200 apartments already delivered.
The termination of the Lotte Eco Smart City project and the ongoing disputes surrounding the Empire State Building project highlight the complex financial and legal challenges facing large-scale urban development in Ho Chi Minh City. Both projects were expected to significantly contribute to the city's urban landscape, but their futures now hang in the balance.
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