Vietnamese Prime Minister Announces Legal Amendments at Meeting
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Shin Dong-bin, Chairman of Lotte Group, is expected to put the Ho Chi Minh Eco Smart City project, a key local initiative, on the right track as the group strengthens its push into the Vietnamese market. This project, into which Lotte Group is investing about 1 trillion won, involves developing a massive complex 1.5 times the size of COEX in Samseong-dong. Although it was delayed due to local land regulations, these legal issues are expected to be resolved next month.
According to Lotte Holdings and the Vietnamese government gazette VGP on the 2nd, Chairman Shin met with Vietnamese Prime Minister Pham Minh Chinh at Lotte Hotel in Jung-gu, Seoul, the day before to discuss economic cooperation measures. The Vietnamese Prime Minister ranks third in the power hierarchy after the Communist Party General Secretary and the State President and oversees the economy.
Shin Dong-bin, Chairman of Lotte Group (left), met with Pham Minh Chinh, Prime Minister of Vietnam, on the 2nd at Lotte Hotel in Jung-gu, Seoul, to discuss economic cooperation measures and took a commemorative photo. Photo by VGP
Prime Minister Pham Minh Chinh visited Korea on the 30th of last month to attend the 'Korea-Vietnam Business Forum' and held meetings with Samsung Group Chairman Lee Jae-yong, Hyosung Group Chairman Cho Hyun-joon, and HS Hyosung Vice Chairman Cho Hyun-sang, among others. On the evening of the 2nd, he will attend a welcome dinner for the visiting delegation along with Hyundai Motor Group Chairman Chung Eui-sun, LG Group Chairman Koo Kwang-mo, and SK Group Senior Vice Chairman Choi Jae-won. Over 150 major businesspeople from Vietnam entered the country to attend the forum.
Chairman Shin and Prime Minister Pham Minh Chinh focused their discussions on large-scale additional investments for Lotte’s urban development and tourism industry revitalization in Vietnam during this meeting.
According to local Vietnamese media, Chairman Shin said at the meeting, "Lotte Group has made significant efforts to invest in Vietnam since 1996," adding, "Most recently, in September last year, with the active support of the Vietnamese government, we opened Lotte Mall West Lake Hanoi, which is currently operating effectively with about 7 million visitors."
Chairman Shin then requested cooperation for the Eco Smart City project that Lotte is building in Ho Chi Minh City. Lotte’s Thu Thiem Eco Smart City project is a large-scale complex development on approximately 680,000 square meters in the Thu Thiem district of Ho Chi Minh City, Vietnam. It includes commercial facilities such as a shopping mall with five underground floors and 60 above-ground floors, along with offices, hotels, service residences, and apartments.
The Thu Thiem district is an area that Ho Chi Minh City is developing as a Vietnamese economic hub representing Southeast Asia, benchmarking Shanghai’s Pudong district in China. The project site is located in the area with the highest concentration of luxury residences, adjacent to the East-West Expressway, and is 1.5 times the size of COEX in Samseong-dong, with a total project cost of about 900 million dollars. Chairman Shin attended the groundbreaking ceremony last September with his eldest son, Shin Yoo-yeol, Executive Director of Lotte Holdings Future Growth Office. However, although the groundbreaking ceremony was held, construction was delayed due to the Vietnamese government’s approval of the building plan and land appraisal issues.
Prime Minister Pham Minh Chinh responded to Chairman Shin’s request by saying, "From the 1st of next month, the revised Land Law, Real Estate Business Law, and Housing Law will be enforced," adding, "Once these laws are implemented, the issues related to land appraisal will be resolved." He also expressed hope that Lotte would continue to expand investments in Vietnamese provinces and cities through the Lotte Mall model.
Chairman Shin has consistently devoted efforts to the Vietnamese market. Earlier this year, he emphasized four management policies: securing a leading position in the industry, expanding global business, investing to secure competitiveness, and comprehensive risk management. He also urged, "Create business models that can lead the market like Lotte Mall West Lake Hanoi," and "Actively consider entering and expanding markets in countries with growth opportunities."
Chairman Shin has visited Vietnam several times. After his pardon in 2022, he chose Vietnam as his first business trip destination, touring the Lotte Mall Hanoi construction site and the Star Lake new town. In September last year, he also attended the grand opening ceremony of Lotte Mall West Lake Hanoi with Executive Director Shin.
Besides Lotte Mall, Lotte is conducting various businesses in Vietnam. Starting with the food and dining sectors in the 1990s, currently, 20 Lotte affiliates have entered Vietnam. Lotteria, operated by Lotte GRS, is the number one fast-food company in Vietnam, and Lotte Mart, which entered in 2008, currently operates 16 stores, including the Hanoi West Lake branch.
Lotte Hotel acquired the Ho Chi Minh Legend Hotel in 2013, opened Lotte Hotel Hanoi the following year, and last year opened 'L7 West Lake Hanoi by Lotte.' Lotte Duty Free has been expanding its business by opening stores at Da Nang Airport in 2017, Nha Trang Cam Ranh Airport in 2018, and Hanoi Airport in 2019. In November 2022, it opened a downtown duty-free store in Da Nang, Vietnam.
Chairman Shin’s activities in Vietnam are expected to continue. An official from the distribution industry said, "Lotte Group suffered significant damage in China due to the THAAD (Terminal High Altitude Area Defense) incident in 2017," adding, "Since Southeast Asia has a large population and a young average age, it has high growth potential and is called the 'second China,' so Chairman Shin’s investments and new business initiatives are expected to continue for the time being."
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