Vietnam wants Lotte to build new commercial hub in Ho Chi Minh

Lotte Group Chairman Shin Dong-bin (left) shakes hands with Vietnamese President Luong Cuong during their meeting in Gyeongju, North Gyeongsang Province, on October 30. (Lotte Group)

Lotte Group has been asked by the Vietnamese government to develop another mixed-use commercial complex in Ho Chi Minh City, the country’s largest urban center.

According to industry sources on Monday, Vietnamese President Luong Cuong met with Lotte Group Chairman Shin Dong-bin on Thursday on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit to discuss partnership opportunities, including the construction of a Lotte Mall in Ho Chi Minh.

The request follows the success of Lotte Mall West Lake Hanoi, which opened two years ago and has since become a major retail and cultural landmark in the capital, attracting more than 25 million visitors.

Vietnam’s proposal is also seen as an effort to stimulate the local economy.

Lotte estimates that operations at the Hanoi complex, including its shopping mall, hotel and cinema, have created about 10,000 direct and indirect jobs.

Lotte entered the Vietnamese market in 1996 through its food business and has since expanded into retail and hospitality. Lotte Mall West Lake Hanoi, which opened in September 2023, recorded more than 570 billion won ($398 million) in cumulative sales as of August and is expected to exceed 600 billion won within two years. The mall’s cumulative visitors have reached 25 million, roughly three times Hanoi’s population.

The business in Vietnam is expected to further drive Lotte’s overseas expansion.

In July, the group held an investor briefing in Hanoi and announced plans to achieve 3 trillion won in overseas sales by 2030.

The company also outlined plans to open two to three additional mixed-use shopping complexes and seven discount stores in major Vietnamese cities. Last year, Lotte Shopping Co.’s overseas sales rose 5.1 percent from a year earlier to 1.6 trillion won.

Lotte is also advancing the Lotte Eco Smart City Thu Thiem development in Ho Chi Minh City, a project it had previously considered shelving due to rising costs and land fees.

After renewed discussions with city officials, the project is back on track. Insiders noted that if the new Lotte Mall project moves forward alongside the smart city development, cooperation between Lotte and Vietnam is expected to strengthen further.