New real estate developments in Thủ Thiêm New Urban Area in HCM City, where Lotte’s long-delayed Eco Smart City project is located. — VNS Photo Bồ Xuân Hiệp

HCM CITY — South Korea’s Lotte Group has reversed course on its plan to pull out of the long-stalled Eco Smart City project in HCM City, seeking to revive the US$760 million development less than two months after formally requesting to terminate it.

Jun Sung Ho, CEO of Lotte Properties HCMC, said last Friday that the company wanted to proceed with the high-profile project in the Thủ Thiêm New Urban Area, following recent meetings with city leaders and a government report to Prime Minister Phạm Minh Chính pledging to address investor concerns.

The statement marks a sharp shift from August, when Lotte filed documents with the city’s Department of Finance to withdraw from the project, citing unresolved legal hurdles and mounting costs. 

The company had complained that delayed land appraisals saddled it with late-payment penalties amounting to trillions of Vietnamese đồng.

Approved in 2017 and ceremonially launched in 2022, the 7.4-hectare smart city development was envisioned as a landmark mixed-use complex with luxury residences, hotels, retail, and offices.

Yet construction has not started, leaving the site dormant and sparking sharp criticism from National Assembly leaders over waste and investor confidence.

At the meeting last Friday, Jun said Lotte is now seeking approval to restructure its shareholding, bring in outside investors with up to 35 per cent stakes, and secure an exemption from a supplementary 5.4 per cent land-use fee.

Nguyễn Văn Được, Chairman of the HCM City People’s Committee, reiterated the city’s support, urging Lotte to work with local departments to resolve bottlenecks.

“We hope foreign investors, including Lotte, will keep faith in the business environment in HCMC and Việt Nam,” he said.

The Eco Smart City, with plans for five underground and 60 above-ground floors, was initially pitched as a symbol of Lotte’s Việt Nam expansion and a flagship of South Korea–Việt Nam cooperation.

Its reversal of the withdrawal request may offer a reprieve for the city, which has faced scrutiny over protracted approval delays and land-use disputes.

Still, the project remains under legal and financial pressure. Lotte has not yet submitted formal termination documents, leaving the development in limbo. — VNS