The Lotte Eco Smart City Thu Thiem project, scheduled to break ground on October 23, 2026, marks a new milestone in cooperation between South Korea’s Lotte Group and Phát Đạt Real Estate Development Corporation (HOSE: PDR).

 

The partnership combines Lotte’s international experience in developing integrated complexes with Phát Đạt’s local market knowledge and project execution capabilities to advance the VNĐ60 trillion (US$2.32 billion) development in the heart of Thủ Thiêm, HCM City.

 

Lotte Eco Smart City Thu Thiem is located in functional zone 2A in An Khánh Ward, HCM City, covering approximately 7.45 hectares across six plots numbered 2-1 to 2-6. The project is planned as a mixed-use urban complex integrating residential properties, Grade A offices, commercial and retail facilities, accommodation services and public spaces.

 

Given its scale and mixed-use nature, the project requires not only substantial investment but also close coordination across planning, product development, construction and the operation of its various urban functions.

 

This creates an opportunity for Lotte and Phát Đạt to bring their complementary strengths to the development: international experience in building integrated complexes and a thorough understanding of the Vietnamese market, backed by local project execution capabilities.

 

Lotte and Phát Đạt: complementary strengths in one project

 

Lotte is one of South Korea’s major diversified conglomerates, with operations spanning construction, real estate, retail, hospitality and services. Developments such as Lotte World Tower & Mall in Seoul, Lotte Center Hanoi and Lotte Mall West Lake Hanoi demonstrate the group’s experience in integrating retail, office, accommodation and entertainment facilities within large-scale complexes.

 

 

Lotte Mall West Lake Hanoi is one of Lotte’s largest developments in Việt Nam. — Photo courtesy of CBRE

 

Three Lotte affiliates are involved in Lotte Eco Smart City Thu Thiem: Lotte Shopping, Hotel Lotte and Lotte Engineering & Construction (Lotte E&C), bringing expertise in retail, hospitality and construction.

 

Phát Đạt, meanwhile, has more than 20 years of experience in Việt Nam’s property development market, with projects including The EverRich, Millennium, La Pura and Quy Nhơn Iconic. Through these developments, the company has accumulated experience in understanding customer demand, developing property products and organising project implementation to suit local market conditions.

 

Local market knowledge goes beyond an understanding of the geographical landscape. It also involves identifying the needs of different customer groups, selecting appropriate property types and developing products that respond to market demand. In addition, Phát Đạt’s experience in working with consultants, contractors, financial partners and sales partners provides a foundation for its participation in the implementation of the project.

 

 

Perspective view of Lotte Eco Smart City Thu Thiem. — Photo courtesy of Phát Đạt

 

Under the development arrangement between the two sides, Phát Đạt will co-develop the residential components in blocks 2-2, 2-4 and 2-6 with Lotte.

 

For the commercial and service components combined with office space, Phát Đạt is responsible for developing the entire tower sections of blocks 2-1 and 2-3, together with their four-storey commercial and service podiums and basement levels. These components have a combined gross floor area (GFA) of approximately 219,720sq.m.

 

In block 2-5, Lotte is responsible for developing the entire tower section, together with the four-storey commercial and service podium and basement levels.

 

This division of responsibilities establishes the role of each party while providing a framework for coordinating resources and ensuring consistency across the different components. The value of the partnership lies not in the two companies having identical capabilities, but in their ability to leverage their respective strengths to meet the demands of a complex urban development.

 

Cooperation takes shape through concrete milestones

 

In 2026, cooperation between Lotte and Phát Đạt has progressed through several important milestones. In May, the two parties signed a memorandum of understanding, followed by an investment cooperation agreement for Lotte Eco Smart City Thu Thiem on June 26.

 

On the same day, Phát Đạt signed a financing agreement with Military Commercial Joint Stock Bank (MB) to arrange funding for its investment in the project.

 

On July 31, Lotte Properties HCM City Co Ltd, the legal entity responsible for implementing the project, completed its land-related financial obligations. Phát Đạt also completed the acquisition of a 35 per cent equity stake in the project company, joining the investment structure alongside Lotte’s affiliated companies.

 

 

Representatives of Lotte Group and Phát Đạt attend the signing ceremony for the investment cooperation agreement for Lotte Eco Smart City Thu Thiem. — Photo courtesy of Phát Đạt

These milestones demonstrate the progress of the partnership from initial agreements towards establishing the investment structure, arranging financial resources and preparing for construction.

 

The groundbreaking ceremony, scheduled for October 23, 2026, is expected to mark the next phase of cooperation, as the focus shifts towards construction management, coordination among the different project components, and the control of construction schedules, quality and safety.

 

From groundbreaking onwards, Lotte and Phát Đạt’s ability to coordinate their resources and fulfil their respective responsibilities will be reflected in the actual implementation of the project.

 

The combination of international experience and local development capabilities is expected to provide a solid foundation for delivering a modern mixed-use urban complex, contributing to the continued development of Thủ Thiêm as a new urban centre of HCM City. — VNS

 

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