Vietnam's COVID-19 Spread... Unexpected Boost for 'Lotte Mart' as Restaurants Close

Crowds Flock to Buy Ingredients and Daily Necessities
Lotte Department Store Closed for Two Weeks
Domestic Food Companies' Local Production Plants on Alert

'Lotte Mart Cau Giay (CAU GIAY) branch' located in Hanoi, northern Vietnam. This photo shows the store on its opening day, February 26, 2019.

[Asia Economy Reporter Jo In-kyung] As the fourth wave of COVID-19 rapidly spreads in Vietnam, domestic distribution companies and food factories operating locally are closely monitoring the situation. With the Vietnamese government and local authorities considering movement restrictions (lockdowns), Lotte Department Store Ho Chi Minh City branch has closed for two weeks.

According to the local consulate and distribution industry on the 1st, Ho Chi Minh City has allowed only takeout and delivery services for all dining establishments in the city since the 28th of last month, banning dining inside restaurants. From the 31st, department stores, electronics retailers, hotel casinos, and plastic surgery clinics within hospitals were ordered to suspend operations.

However, large supermarkets selling daily necessities remain open as usual. Companies and offices are also encouraged to implement remote work unless essential tasks must be handled in person.

Following city policies, Lotte Department Store Ho Chi Minh City branch will be closed for two weeks starting today. Lotte Department Store Hanoi branch, which is not subject to business restrictions, continues normal operations. Previously, during the major COVID-19 outbreak last year from late March to late April, the Ho Chi Minh and Hanoi Lotte Department Stores temporarily closed for 27 and 28 days respectively.

Lotte Mart, which operates 15 stores in Vietnam, has unexpectedly experienced a surge in demand. As dining establishments closed, crowds flocked to purchase ingredients and daily necessities. At four Lotte Mart stores in Ho Chi Minh City, sales of fresh food, ramen, and daily necessities increased by about 40% as of the 31st.

A Lotte Mart official stated, "Each local government is strengthening regulations by issuing gathering bans or suspending operations of restaurants and service industries. The government continues to send messages urging citizens to refrain from panic buying while securing necessary goods and food supplies."

Convenience store GS25, operated by GS Retail, opened the 'Vietnam GS25 Becamex Tower Branch' in Binh Duong, Vietnam, on March 11. [Image source=Yonhap News]

GS Retail, which operates about 100 convenience stores in Ho Chi Minh City alone, is also operating normally. Due to the nature of convenience stores handling daily necessities, they are not subject to business restrictions, and prepared foods inside convenience stores are sold in takeout form.

A GS25 official said, "So far, there has been no significant change in convenience store sales or customer numbers. If movement restrictions are imposed while convenience stores remain open, stores located in residential areas are expected to see an increase in sales."

Domestic food companies with production factories in Vietnam are on high alert. Currently, CJ CheilJedang, Orion, and Daesang operate factories in Vietnam. A food industry official said, "Although there are no disruptions in factory operations yet, we are closely monitoring the situation as it directly relates to the safety of employees."