Korea's 5th largest chaebol increases investment in Vietnam

Lotte Shopping, South Korea's leading retailer, plans to open two to three more shopping malls in Vietnam to double its operating profit by 2030.

Lotte is preparing to open 2-3 more shopping malls in Vietnam to double profits by 2030. Photo: Lotte.

Lotte is targeting the high-end consumer segment in Vietnam by adopting a Korean marketing style, taking advantage of the growing popularity of Korean cuisine and culture as well as the expanding purchasing power of this market, according to Korea Economic Daily .

"By 2030, we will open two to three more commercial complexes in Vietnam, similar to Lotte Mall West Lake Hanoi , which we opened in September 2023," said Kim Sang-hyun, Vice President and CEO of Lotte Shopping, at an investor meeting on September 15.

The group also targets 20.3 trillion won ($14.7 billion) in revenue and 1.3 trillion won ($940 million) in operating profit by 2030.

This profit target is more than double the 473.1 billion won (equivalent to 343 million USD) that the company achieved in 2024. Accordingly, Lotte Shopping's revenue in 2024 will reach 14,000 billion won (equivalent to about 10 billion USD).

The 5th largest corporation in Korea has made a successful mark in Vietnam with Lotte Mall West Lake Hanoi.

The 354,000-square-meter complex in West Lake West distinguishes itself from other retail centers by bringing together international luxury and fast -fashion brands.

Of the 233 stores here, 40% are brands that are appearing for the first time in Hanoi. Luxury brands such as Chanel Beauty, Lancome and Coach have all opened stores here.

Cumulative sales at the complex exceeded 200 billion won (approximately $145 million) by the end of June and reached over 300 billion won (approximately $217 million) by the end of December 2024. During the same period, the mall welcomed more than 12 million visitors.

In Southeast Asia, Lotte is also expanding its presence in Indonesia, amid a saturated domestic market and fierce competition from e-commerce rivals.

In 2018, Lotte became the first South Korean retailer to enter Indonesia, where traditional grocery stores still dominate. The company now operates 48 Lotte Mart supermarkets and one department store in the country.

Meanwhile, the South Korean retailer withdrew from China in 2028, after a decade of entering the market once considered a "promised land".

Lotte, which peaked with five department stores and 119 supermarkets in China, suffered a blow after Beijing imposed restrictions on South Korean goods in retaliation for Seoul's deployment of the THAAD missile defense system in 2018.

Source: https://baoquangninh.vn/chaebol-lon-thu-5-han-quoc-tang-manh-dau-tu-vao-viet-nam-3376261.html