SEOUL, September 23 (AJP) - South Korea’s Lotte Group has officially withdrawn from a large-scale property development in Ho Chi Minh City after completing documentation for its exit, according to regulatory filings.
The company concluded that the Thu Thiem Eco Smart City project had become “financially unfeasible” as costs ballooned due to regulatory delays and surging land prices. The project, on a 74,513 m² site with a 50,000 m² development area in functional area 2A, was planned as a landmark complex with five underground floors and 60 above-ground stories. Lotte had pledged about VND 20,100 billion in investment.
Ground was broken in September 2022 in a ceremony attended by Lotte Group Chairman Shin Dong-bin. The complex was intended to anchor a financial, banking, trade, and service hub in the Thu Thiem new urban area.
In its request to the government to terminate the project, Lotte cited prolonged delays in land valuation, regulatory inspections, and frequent legal changes that inflated land use and investment costs, sharply reducing financial efficiency compared with the initial plan.
The Ho Chi Minh City Department of Finance acknowledged receipt of Lotte’s request but stressed that the group remains the legal investor until termination procedures are finalized under the Investment Law. The city also noted that land prices related to the project were announced in early July 2025.
At a September 22 meeting of the National Assembly Standing Committee, Phan Van Mai, chairman of the Economic and Financial Committee, criticized the withdrawal as “a waste,” warning that years of idle land use could damage Vietnam’s investment environment.
Industry watchers say the retreat underscores the risks of large-scale property investment in Vietnam, where slow administrative procedures and shifting policies can derail projects. The decision could also disrupt Lotte’s retail and real estate expansion plans in the country, leaving the group exposed to sunk costs, possible compensation liabilities, and legal entanglements.
Lotte’s exit highlights how rising costs and policy uncertainty can transform seemingly viable projects into financial burdens, raising fresh concerns about Vietnam’s stability as a destination for foreign investment.
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