Overview of Thu Thiem Eco Smart complex project (Lotte Eco Smart City) - Photo: NGOC HIEN
On September 25, the Ho Chi Minh City Department of Finance said that it had received a document from the Office of the Ho Chi Minh City People's Committee regarding the proposal of the consortium of Sunshine Group Joint Stock Company and DIA Investment Joint Stock Company (abbreviated as Sunshine and DIA consortium) related to the Thu Thiem Eco Smart City project.
Accordingly, the Sunshine and DIA consortium proposed to continue implementing the Smart Complex project (Thu Thiem Eco Smart City) in functional area No. 2a, Thu Thiem new urban area, An Khanh ward, Ho Chi Minh City.
However, after reviewing, the Department of Finance sent a document on September 24 to the Sunshine and DIA consortium stating that the Department of Finance currently has no basis to consider the consortium's proposal.
The reason given by the Department of Finance is that although Lotte Properties HCMC Company Limited has a document wanting to terminate the contract to implement the Thu Thiem Eco Smart City project, Lotte is still the investor in the documents.
Specifically, according to the provisions of the law on investment, in case the investor decides to terminate the project, the investor will carry out the procedures to terminate the investment project according to the regulations.
To date, the Department of Finance has not received any documents from Lotte Properties HCMC Co., Ltd. Therefore, in principle, Lotte Properties HCMC Co., Ltd. is still the investor implementing the Thu Thiem Eco Smart City project according to the project legal documents approved by the competent authority.
Thu Thiem smart complex is invested by Lotte Properties HCMC Co., Ltd. (belonging to Lotte Group, Korea), under the form of investor selection.
In September 2022, Lotte held a groundbreaking ceremony for the project. At that time, the investor said the total investment capital of the project was about 20,100 billion VND, including hotels, residential areas, commercial areas...
Nearly 8 years after signing the investment contract and 3 years since the groundbreaking ceremony, this billion-dollar project has yet to be implemented due to financial obligations and legal procedures. In June, the project was approved for land valuation of more than 16,190 billion VND.
However, Lotte believes that due to the prolonged land appraisal process and changes in legal policies causing increased investment costs and changes in project conditions, continued implementation is no longer feasible, so it decided to terminate the contract.
Lotte's return of the Thu Thiem project is a waste
At the meeting of the National Assembly Standing Committee on September 22, Chairman of the National Assembly Economic and Financial Committee Phan Van Mai said that Lotte's request to stop the project in Thu Thiem could cause waste when the land is not used for many years and affect the investment and business environment.
According to Mr. Mai, the valuation and land use fees of this project have been determined a long time ago, but due to the project's slow implementation, the investor has to pay several thousand billion VND in late payment fees.
"The company saw that the delay in payment was not their fault, so they returned the project," Mr. Mai stated the reality. When the project is returned, it means that the land may not be used for many years, and this is "a waste."
Furthermore, Mr. Mai said that this affects the business environment, investors' confidence, and is also a big waste.
Source: https://tuoitre.vn/lotte-rut-lui-lien-danh-sunshine-dia-chua-the-nhay-vao-du-an-thu-thiem-eco-smart-city-2025092522505519.htm
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