Two major projects in Vietnam can finally proceed after receiving government approval. Each development was proposed back in the 2000s but were plagued by setbacks over the past decade. However, it now appears that work can start on Lotte Group’s smart city in Thu Thiem New Urban Area of Ho Chi Minh City and the Vinh Hoi Hotel and Resort Complex in Binh Dinh province.
Of the two major projects in Vietnam, the eco-smart city from Lotte Group is most well-known. The South Korean giant first announced the ambitious development in 2009 but was beset with issues regarding legal regulations and the withdrawal of investment partners from Japan. This caused multiple delays during the 2010s.
The conglomerate submitted two solutions to government officials with the Ministry of Planning and Investment agency recommending that Lotte Group remain the key investor to implement the venture. Meanwhile, the Government Inspectorate was assigned to review all outstanding issues.
According to Vietnam Investment Review, the government approved a proposal from Ho Chi Minh City People’s Committee, the Government Inspectorate and the Ministry of Planning and Investment that allows for Lotte Group to now proceeded with the eco-smart city in Thu Thiem New Urban Area.
Major resort allowed to proceed
Developer ITC Spectrum was also given some good news in regard to its Vinh Hoi Hotel and Resort Complex. The Binh Dinh People’s Committee removed a key obstacle that will allow work to resume on the USD250 million development.
Vinh Hoi Hotel and Resort Complex was first approved in 2006 but issues over who would pay the land clearance costs has meant no movement has been made since 2011. The main hold up was that neither side wanted to foot the bill for this cost. Traditionally, developers pay for land clearance and are then reimbursed by the local government through tax deductions. However, no such agreement was reached for the resort.
The Binh Dinh People Committee opted to step in and urged local authorities to accelerate land clearance so ITC Spectrum could begin work on the Vinh Hoi Hotel and Resort Complex. It is part of the province’s desire to boost investment and get several notable real estate projects off the ground in 2021.