Lotte ups Vietnam investment

South Korean hypermarket Lotte Mart has received government approval to operate directly in Vietnam.

To fully own its business in Vietnam, Lotte Mart will buy out the remaining 20 per cent in Lotte Vietnam Commercial Center, a joint venture it formed with Minh Van Commercial and Production Company.

The joint venture currently operates two commercial centres in Ho Chi Minh City.

Lotte Mart also seeks to expand in the country where it sees potential for growth. It says it will open two new stores in Danang City and Bien Hoa City before the year ends.

The company invested US$40 million in the Bien Hoa store which will open in November and US$30 million in the Danang store which is due to open in December.

“The Vietnamese market will become our stronghold to expand our overseas operations in southeastern Asia,” said Kim Min-seok, a Lotte Mart official.

Lotte says its pipeline will take the number of supermarkets to 60 by 2020.

Another foreign retailer which eyes bigger slice of Vietnamese market is Korean retailer E-Mart which plans to set up 52 stores by 2020 through a joint venture with U&I Group.

GB

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