After more than a decade of involvement, why is Singapore’s Keppel exiting Vietnam’s Empire City project?
Ho Chi Minh City’s new Thu Thiem urban area was once home to one of the most anticipated large-scale residential projects, Empire City. With an originally planned total investment of approximately $1.2 billion, much of the project remains unfinished, and the most prominent 88-story tower is still on the drawing board.
Recently, Singapore’s Keppel Group announced it would sell its entire 40% stake in Empire City, held for over a decade, for $270 million. On the surface, this appears to be a simple investment exit. However, when viewed alongside years of disputes over land fees, arbitration, and project delays, the situation proves far more complex.
Keppel sells 40% stake for $270 million, begins adjusting real estate investments
Keppel has signed a conditional agreement to transfer its entire 40% capital contribution in Empire City LLC for approximately $270 million, with the transaction expected to be completed in the fourth quarter of 2026.
This 40% stake will be sold in two parts: 20% to Vietnamese company Denver Power Vietnam Company Limited, and the other 20% to Golden Axis Company Limited. The buyers will make cash payments in three installments, with the final payment contingent upon regulatory approval for the transfer of ownership.
For Keppel, this transaction is more of a portfolio adjustment. The Group has recently aimed to place more assets under professional management and operation, reducing its long-term direct ownership of non-core real estate projects. According to the company, this deal will not have a significant impact on this year’s net tangible assets per share or earnings per share.
In other words, Keppel isn’t exiting simply because it “can’t sell,” but rather to reallocate its capital. The question remains, however: why Empire City specifically? This brings us back to the project itself.
Aerial view of the Empire City project, with Ho Chi Minh City’s central district on the opposite bank. Source: https://znews.vn/
A $1.2 billion project – why is it still incomplete after more than a decade?
Empire City was initially announced with a total investment of around $1.2 billion and began development around 2015. It was originally planned to be built in four phases, with completion targeted for 2022.
However, the project’s progress has significantly deviated from the original schedule. Currently, only three residential zones have been delivered: Linden Residences (MU4), Tilia Residences (MU7), and Cove Residences (MU11), totaling about 1,200 units.
More critically, issues persist with land procedures. The project was granted nine land plots in total, but only three have secured land use rights certificates. This means construction cannot commence on other parts as desired, with some phases continually hampered by legal and land-related obstacles.
The most symbolic example is the planned 88-story skyscraper. Intended to be a key landmark of the new Thu Thiem urban area, it has yet to break ground.
Therefore, Empire City’s problems are not simply about whether “apartments sell well,” but rather unresolved issues concerning land, finances, and legal procedures.
After years of construction, the Empire City project has only delivered three zones. Source: https://znews.vn/
Land fees become the biggest point of contention; Keppel even takes partners to international arbitration
The real complication arises from land fees.
In late 2025, the project company received a notice demanding an additional payment of $261 million (VND 6,870 billion) in supplementary land use fees. Due to the substantial amount, the company also requested a review and adjustment of the land use fees from the authorities.
Earlier, the project company had already proposed to Ho Chi Minh City authorities that it not be required to pay over $335 million (VND 8,800 billion) in back land fees calculated under the new methodology. The company argued that it had fulfilled all relevant financial obligations under the regulations in place when it acquired the land in 2016, and that subsequent changes in policy and calculation methods should not be borne entirely by the enterprise.
This dispute eventually extended to relations between Keppel and its Vietnamese partners.
In April of this year, Keppel’s subsidiary, Corredance Pte. Ltd., filed for arbitration with the Singapore International Arbitration Centre (SIAC) against Denver Power Ltd., Tien Phuoc Real Estate Joint Stock Company, and Tran Thai Real Estate Company Limited, demanding they bear the relevant land costs per the investment agreement.
Keppel’s reasoning is straightforward: the investment agreement contains commitments regarding legal approvals and land financial obligations, and thus, this additional land fee should not be borne by Keppel itself.
Against this backdrop, Empire City LLC completed the payment of approximately $201 million (VND 5,300 billion) in supplementary land use fees on August 5, while still requesting a re-evaluation of the 3.6% late payment penalty.
Singapore’s Keppel Group, which announced the sale of its entire 40% stake in Empire City. Source: https://vietstock.vn/
Empire City’s story reflects a reality of large-scale real estate projects in Vietnam
Empire City’s experience is noteworthy not just because of Keppel’s exit, but because it encapsulates the most common challenges facing large real estate projects in Vietnam: land acquisition, planning adjustments, financial obligations, and clearly defining the rights and responsibilities between foreign companies and local partners.
The project company for Empire City has also faced issues with taxes, penalties, and late fees. Data shows that as of March 26, 2026, related outstanding debts totaled approximately $265 million (VND 6,970 billion), of which about $63 million (VND 1,640 billion) had been overdue for over 90 days.
Real estate in the Thu Thiem area along the Saigon River. Source: https://vnexpress.net/
For foreign investors considering projects in Vietnam, the assessment must go beyond prime location and potential future sale prices. It is crucial to determine whether land financial obligations are clearly settled, understand the legal status of each land plot, and grasp the responsibilities and obligations of different shareholders as outlined in the developer’s cooperation agreements.
While Keppel’s $270 million exit from Empire City may, on the surface, be part of a portfolio adjustment, viewed within the project’s decade-long history, it serves as a stark reminder for foreign developers entering the Vietnamese market: while approval processes for real estate projects are easing and timelines are somewhat faster than before, securing a good piece of land is just the beginning. The true test of patience often lies in the subsequent legal and procedural uncertainties related to the land itself.
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