Empire City Joint Venture Company Limited, developer of the Thu Thiem Observation Tower complex in Ho Chi Minh City, has petitioned the city government over a proposed additional land use fee of VND 8,819 billion (US$339 million), Tuoi Tre has reported → view source.
This comes after it was announced that South Korea’s Lotte would be withdrawing from a planned project in the same area after its land use fee obligations, among other costs, ballooned.
Key details:
- Land allocation: In September 2016, the city allocated 11.5 hectares for a 50-year term starting June 2015. By early 2017, the investor had paid VND 3,581 billion (US$138 million) to complete obligations. Decision No. 927 at the time stated the company “does not have to pay additional financial obligations” when shifting from one-time lease payment to land allocation with a land use fee.
- Project progress: Based on that decision, the developer built and handed over three clusters with nearly 1,200 apartments.
- Stalemate since 2019: The project has stalled due to unresolved financial obligations after a Government Inspectorate review, leading to what the investor describes as wasted time and resources.
- New proposal: Authorities recently calculated an extra VND 8,819 billion (US$333.9 million) fee, 246 percent higher than the original payment. A binding clause would also require the company to meet future obligations if state agencies later issue new conclusions.
- Petition requests: The developer urged authorities to calculate obligations based on the 2015 allocation and laws in effect then, namely Circular 36/2014. It also asked to factor in planning adjustments to avoid repeated recalculations.
The Empire City dispute highlights regulatory unpredictability in Vietnam’s prime real estate market.
Even when initial obligations are settled, retrospective reassessments can stall projects and impose heavy costs.
Investors should prepare for potential renegotiations of land fees and factor in policy and legal shifts when assessing project viability.
See also: Why Vietnam’s “Market Principles” Land Pricing Policy Reversal Push is Worth Watching