Lotte Accelerates Investment in Vietnam Market

[Asia Economy Reporter Seungjin Lee] Lotte Group, which has launched a large-scale restructuring of its sluggish domestic business centered on Lotte Shopping, is accelerating its investment in the Vietnamese market.

According to the industry on the 4th, Hotel Lotte established the 'Lotte World Vietnam' corporation in April with 100% equity investment. This corporation was established to build an aquarium to be located in 'Lotte Mall Hanoi,' which is currently under construction in Hanoi, Vietnam. Lotte Mall Hanoi is the second mega complex mall introduced by Lotte in Hanoi since the 'Lotte Center,' which opened in Hanoi in 2014.

Lotte Mall Hanoi is the largest complex mall in Hanoi, covering approximately 73,000㎡ (22,000 pyeong), consisting of a shopping mall, department store, mart, and cinema. Initially, Lotte Mall Hanoi aimed for completion this year, but construction was sluggish due to local circumstances and the recent impact of the novel coronavirus (COVID-19). Recently, as the COVID-19 situation in Vietnam has improved, Lotte plans to speed up the project again with the goal of completion by 2022.

Offline stores in Vietnam will also be strengthened. Lotte Mart Vietnam Corporation will expand the one-hour delivery service using 'Grab Express,' Grab's motorcycle delivery service, which has been operating at a total of nine stores in Ho Chi Minh City and Hanoi, to all 14 Lotte Mart stores in Vietnam this year through collaboration with the ride-sharing company Grab.

Lotte Mart plans to actively utilize the 'one-hour delivery service' to strengthen the competitiveness of ready-to-eat and fresh foods. Although delivering fresh products has been difficult in tropical regions, it is judged that if hygiene is guaranteed with fast delivery times, it can become Lotte Mart's differentiated competitiveness. Through this, the current mobile sales composition ratio of fresh foods, which is in the 2% range, is planned to increase to 9% by 2022.

Additionally, Lotte is carrying out the 'Lotte Eco Smart City' project in Ho Chi Minh City, Vietnam. Lotte Asset Development, which is in charge of the project, aims to invest about 1.2 trillion KRW by 2024 in the first phase of the project to develop a large-scale complex consisting of ultra-high-rise office facilities, shopping malls, hotels, and apartments.

A Lotte official said, "Due to the impact of COVID-19, businesses in Vietnam were unable to gain momentum, but as the situation has recently improved, we are adjusting to the local situation again," adding, "Overseas businesses have many variables depending on local circumstances, but we plan to proceed steadily according to the business plan."