According to local media reports, including Z News, Lotte Group and Phat Dat officially signed an investment cooperation agreement for the Lotte Eco Smart City Thu Thiem project on June 26 in Ho Chi Minh City. The event was attended by Bui Minh Tan, Deputy Chairman of the Ho Chi Minh City People's Committee, representatives from the Korean Consulate in Ho Chi Minh City, and executives from Lotte, Phat Dat, and MB Bank. Simultaneously, MB Bank secured a financial agreement to fully fund Phat Dat's project investment, completing the financial structure.
The project has been a focus for Shin Dong-bin since 2015, when he sought direct cooperation from the Vietnamese government and Ho Chi Minh City. However, delays occurred due to audits of development projects by the central government, a halt in permits due to COVID-19, revisions to related laws, and rising land use fees. As a result, Lotte announced plans to withdraw from the project last August.
Following this, Lotte continued discussions with Ho Chi Minh City regarding equity adjustments among its subsidiaries, attracting external investments, and alleviating financial burdens. The company has since reestablished a foundation for normalizing the project with the confirmation of Phat Dat's investment and the first financial obligations being met.
7.54 Hectares of Development... A Smart Mixed-Use City in the Heart of Thu Thiem
The Lotte Eco Smart City Thu Thiem is a large mixed-use development project located in functional area 2A of Ho Chi Minh City's Thu Thiem new urban area. The site consists of six adjacent parcels, numbered 2-1 to 2-6, covering approximately 7.54 hectares. The total investment is estimated at around 60 trillion dong (approximately $3.5 billion).
This project aims to integrate A-grade office towers, commercial and retail podiums, hotels, serviced residences, residential areas, and public spaces into a single ecosystem. It aspires to meet international standards for urban planning, development, and operation, positioning the area as a new international administrative, financial, commercial, and service hub for Ho Chi Minh City. The land blocks are adjacent to the Thu Thiem Central Plaza and Central Lake and are directly connected to the Thu Thiem Tunnel and subway lines.
According to the agreement, Phat Dat will participate in the project with a 35% stake. Specifically, Phat Dat will co-develop residential blocks 2-2, 2-4, and 2-6. Additionally, it will directly oversee the development of commercial high-rise blocks 2-1 and 2-3, as well as the four-story commercial and service podium and underground parking area. This structure allows Phat Dat to expand its presence in Ho Chi Minh City's new central business district by leading the development of key commercial assets alongside Lotte's residential collaboration.
MB Bank stated, "By securing funding at the initial stage, we can support the project schedule," adding that it has fully prepared the funds to meet the execution plans according to the project timeline.
Nguyen Van Dat, Chairman of Phat Dat's Board, remarked, "The investment cooperation between Lotte and Phat Dat is evidence of the effective combination of international capabilities and local expertise," noting that MB Bank's financial support lays the groundwork for fulfilling investment commitments on schedule. Shin Man-soo, Executive Director of Lotte Engineering & Construction, emphasized, "Phat Dat's 35% stake is not just a capital partnership but creates synergy in project development," asserting that the combination of Lotte's international construction, commercial, and hospitality capabilities with Phat Dat's local market experience will create a modern mixed-use complex in the heart of Thu Thiem.
Earlier, on June 22, Phat Dat's general meeting approved the acquisition of shares in Lotte Properties HCMC. The total transaction amount is approximately 10.4 trillion dong, which represents less than 35-50% of the company's recent total asset value. The transaction is expected to be executed after June 2026, depending on the progress of negotiations and government approvals.
Building on Success in Hanoi, Lotte Expands to the South
This is not Lotte Group's first large-scale mixed-use development in Vietnam. The 272-meter tall Lotte Center Hanoi, which features 65 floors above ground and five below, is an iconic project that integrates A-grade offices, hotels, serviced apartments, shopping malls, supermarkets, and the Hanoi Sky Observation Deck. The Lotte Mall Westlake Hanoi, which opened in September 2023, is a mixed-use facility that includes a shopping mall, hotel, serviced apartments, offices, and an aquarium, surpassing 30 million visitors by the end of March this year. Cumulative sales reached approximately $406 million (about 700 billion dong) by the end of last year, with expectations to exceed $680 million (about 1.04 trillion dong) by the end of this year.
Building on these successes, Chairman Shin emphasized during his visit to Vietnam in April that "Vietnam is a key country in the group's global business strategy." His eldest son, Shin Yoo-yeol, who leads the group's future development sector, also inspected local operations. During the April visit to Hanoi, they met with Bui Dai Tang, Chairman of the Hanoi People's Committee, to discuss expanding cooperation in shopping malls, financial centers, smart cities, and public transportation. The Hanoi side expressed its commitment to strengthen collaboration with Lotte, designating the Hong River Scenic Boulevard as a new symbol of development.
Meanwhile, Lotte Group has been building a multi-layered portfolio in Vietnam beyond real estate development. Lotte GRS operates the Lotteria chain and continues to expand its franchise, while also establishing research and development centers to create products tailored to local characteristics. Lotte Global Logistics and Lotte Innovate are investing in logistics, IT, and digital transformation, and Lotte Ventures is investing in the Vietnamese startup ecosystem through venture capital.
* This article has been translated by AI.
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