Phat Dat (PDR) and Lotte to Break Ground on VND 60,000B Thu Thiem Project

Overview

Phat Dat Real Estate Development Corporation (PDR: HOSE) and Lotte Properties HCMC will officially break ground on blocks 2-1 and 2-3 of the Lotte Eco Smart City Thu Thiem project on October 23, 2026. The total investment for the entire project is approximately VND 60,000 billion, with Phat Dat contributing more than VND 10,000 billion. The event marks a major construction milestone for one of the largest mixed-use developments in Ho Chi Minh City’s Thu Thiem new urban area.

Key Facts

• Groundbreaking date: October 23, 2026, for blocks 2-1 and 2-3.
• Total project investment: approximately VND 60,000 billion; PDR’s contribution exceeds VND 10,000 billion.
• Construction timeline: 36 months, from October 23, 2026, to October 23, 2029.
• Blocks 2-1 and 2-3 total floor area: about 171,580 m².
• Land area: 74,513 m², with development area of about 50,000 m².
• Building specifications: 5 basement levels, 60 above-ground floors, integrating hotel, residential, and commercial functions.
• Lotte Properties HCMC completed land financial obligations of VND 17,569 billion on July 31, 2026.

What Happened

Phat Dat announced that it will commence construction on blocks 2-1 and 2-3 of the Lotte Eco Smart City Thu Thiem project on October 23, 2026. The project is planned across six land plots, labeled 2-1 through 2-6, in the Thu Thiem New Urban Area. Under the cooperation agreement between Phat Dat and Lotte, Phat Dat is co-developing the residential components in blocks 2-2, 2-4, and 2-6, while taking full responsibility for developing the commercial and service blocks 2-1 and 2-3, including a four-story commercial podium and basement levels.

The announcement follows the completion of land financial obligations by Lotte Properties HCMC, the project owner, which paid VND 17,569 billion on July 31, 2026, according to Phat Dat’s official disclosure. Preparation work is underway to ensure construction can begin as scheduled. Upon completion, the project is expected to help establish a financial, banking, commercial, and service center in Thu Thiem.

Market Context

PDR closed at VND 11,500 on September 21, 2026, on the Ho Chi Minh Stock Exchange (HOSE). The real estate sector has faced a challenging environment in recent years, with liquidity constraints and regulatory scrutiny weighing on developers. The Thu Thiem project represents a significant long-term pipeline for PDR, which has been restructuring its portfolio and partnerships. The broader Vietnamese market has seen selective recovery in property stocks tied to actual construction progress and foreign joint ventures.

Strategic Significance

For long-term investors, the Lotte Eco Smart City project provides PDR with a large-scale, foreign-partnered development in a prime location, potentially enhancing revenue visibility beyond 2029. The partnership with Lotte, a major South Korean conglomerate, may also improve access to international capital and expertise. The commercial blocks 2-1 and 2-3, which PDR fully develops, could generate recurring income from hotel and retail operations, diversifying away from pure residential sales. However, the project’s success depends on execution, funding, and absorption in the Thu Thiem area, which has seen slower-than-expected infrastructure rollout.

What to Watch

• Official groundbreaking ceremony on October 23, 2026, and any updates on construction progress.
• PDR’s quarterly disclosures on project funding and capital structure.
• Absorption rates and pricing for residential units in blocks 2-2, 2-4, and 2-6.
• Regulatory approvals for the commercial components and any changes to the master plan.
• Lotte’s further investment commitments or additional partnerships in Vietnam.