S Korea’s Lotte ready to start on Vietnam ‘smart city’

The 74,420-square-metre project in the core of the Thu Thiem New Urban Area will cost 20.1 trillion dong (Bt29 billion) in addition to compensation for the land.
People’s Committee chairman Nguyen Thanh Phong and Lotte chairman Shin Dong Bin witnessed the signing.
Phong praised the group, which has had many major investments in Vietnam and become a well-known brand in the country.
He vowed to continue creating favourable conditions for foreign investors, including the Lotte Group, to help them operate effectively and profitably in the city.
Lotte, which had been pursuing the project for years, received approval in 2014. Construction will begin as early as next quarter.
It will feature a trading-financial-banking centre, hotels, an office tower and serviced and residential buildings on 50,120sqm. The remaining area will be used for roads and other infrastructure.
Construction on the project licensed for 50 years is expected to take six years.
Affiliates like Lotte Asset Development, Lotte Shopping, Hotel Lotte and Lotte Engineering & Construction will participate in the project.
Lotte has escrowed around 2 trillion dong for fees for six lots of land.
The developer is paying for and building some of the infrastructure, which will ease the burden on the city, which is paying off a 29-trillion-dong loan to develop the Thu Thiem peninsula.
The interest on the loan is 2.9 billion dong a day, according to the city.
The 657-hectare peninsula is located to the east of the Saigon River, adjacent to districts 1, 7, 9 and Binh Thanh.
It is expected to become a hub for culture, entertainment as well as financial and commercial services.