The One Central HCM complex sits across from Bến Thành Market in one of HCM City’s most valuable locations. Authorities say the project may soon resume after years of suspension. — VNS Photo Bồ Xuân Hiệp

HCM CITY — Two long-abandoned skyscraper developments in downtown HCM City may finally be revived after more than a decade of delay, as local authorities move to resolve legal and financial obstacles that have left the developments idle.

The city’s Department of Construction said it is working with other agencies to find solutions for the IFC One Saigon and One Central HCM projects, both located in prime downtown areas and once expected to become architectural landmarks of Việt Nam’s largest metropolis.

The move is part of the city People’s Committee's effort to untangle legal issues holding back several real estate developments and restore confidence in the property market, which has struggled with debt and regulatory gridlock in recent years.

Two ‘ghost towers’ in the heart of the city

Located on Tôn Đức Thắng Street near the Saigon River, IFC One Saigon, formerly known as the Saigon M&C Tower, began construction in 2008 with an estimated investment of US$256 million. 

Designed to include offices, serviced apartments and a shopping centre, the 42-storey tower was 80 per cent complete when work stopped in 2012 due to financial problems.

The project later changed ownership multiple times and became entangled in bad debt disputes. In 2021, developer Viva Land took over the project and renamed it IFC One Saigon, but construction again stalled following the arrest of Trương Mỹ Lan, chairwoman of the Vạn Thịnh Phát Group, which is linked to the developer.

City authorities have now received a petition from the chairwoman requesting to resume investment in the tower. 

The Department of Construction has been asked to coordinate with relevant agencies to assess the proposal and recommend a plan for completion.

Just a few blocks away, the One Central HCM project, previously known as The Spirit of Saigon, occupies one of the city’s most valuable plots, across from iconic Bến Thành Market. 

Planned as a twin-tower complex combining offices, residences and hotels, the project began more than a decade ago but halted after completing its basement structure.

The city has recently approved adjustments to the project, including a 48-month extension to its construction timeline and partial legal clearance for transfer of ownership, paving the way for potential resumption.

Both projects have stood unfinished for years, becoming eyesores in the city’s central business district. 

Long-standing property bottlenecks

Urban planners and industry experts say their revival would help beautify the skyline and demonstrate progress in tackling Việt Nam’s long-standing property bottlenecks.

“These developments are emblematic of the challenges facing Việt Nam’s real estate sector — ambitious in design, but hindered by legal uncertainty and financial distress,” one HCM City-based property consultant, who asked not to be named, told Việt Nam News and Law.

Their possible revival, he added, “signals that authorities are serious about unfreezing stalled projects and restoring investor confidence.”

HCM City is currently reviewing dozens of delayed or suspended developments as part of a government-led initiative to boost the housing supply and attract foreign capital.

Analysts say clearing legal barriers for stalled projects could inject much-needed liquidity into the sector, reduce bad debts tied to property loans, and send a positive signal to investors watching Việt Nam’s financial reforms.

If completed, the two projects would join other major developments reshaping the downtown area, part of the city’s broader ambition to become a regional financial hub. — VNS

The IFC One Saigon tower stands unfinished in downtown HCM City after more than a decade of delay. City authorities are now considering plans to revive the long-stalled project. — VNS Photo Bồ Xuân Hiệp