South Korea's consortium to build $885 mln commercial complex in Saigon

By Trung Son   May 6, 2017 | 11:20 am GMT+7
South Korea's consortium to build $885 mln commercial complex in Saigon
An artist impression for Thu Thiem Urban Area in Ho Chi Minh City's District 2. Photo by VnExpress/Huu Cong

Construction is expected to complete by 2023, upgrading Thu Thiem to a new modern area.

A consortium under South Korea's Lotte Group has won permission to build a VND20.1 trillion ($885 million) commercial and residential complex in Vietnam's Ho Chi Minh City, the municipal government said.

Four subsidiaries in the group, South Korea's fifth largest conglomerate, will form the consortium to build the smart urban complex, the city's Communist Party chapter said in a report. It named the four firms as Lotte Asset Development Co, Lotte Shopping Co, Hotel Lotte Company and Lotte Engineering and Construction Company.

The group would build commercial and service zones and residential blocks on more than 50,000 square meters (60,000 square yards) for 72 months in Thu Thiem, a new urban area located by the Saigon River in the city's District 2, the report said.

The consortium will also develop roads and infrastructure for the complex, slated to accommodate more than 145,000 residents and provide permanent work to another 219,000. 

Thu Thiem, with a total area of more than 1,600 acres, is planned to be the city’s new financial and commercial center, providing services which have not been well covered by the current city downtown.

South Korea is already the biggest foreign investor in Vietnam, with investment totaling more than $50 billion. Shipments of Samsung smartphones and spare parts account for around one fifth of Vietnam's total export revenues.