South Korea’s leading retailer Lotte Mart has plans to strengthen its presence in Vietnam, taking part in all modern retail channels and mergers & acquisitions (M&A) activities in the country.

Speaking to the media during the second anniversary of Lotte Mart Dong Nai last Friday, Hong Won Sik, general director of Lotte Mart Vietnam, said the firm has invested around US$350 million in the local market. The group has built eight commercial centers nationwide and will open two more in Ba Ria-Vung Tau Province and HCMC within this year.
Lotte looks to become a leading retailer in Vietnam with 60 commercial centers by 2020. However, the group has seen a slow expansion of stores, he said.
Analysts said the economic needs test (ENT) requirement for opening new stores has made it tough for foreign retailers to open their second center in Vietnam. Lotte Mart launched its first store in 2008 and could not open its second until three years after that.
Currently, many retailers are seeking to boost their presence in Vietnam through M&A deals. For instance, Thailand’s Berli Jucker Group has acquired Germany’s wholesale store chain Metro Cash & Carry in Vietnam and Vingroup has purchased a major stake in the OceanMart retail store chain.
Regarding the M&A tendency, Hong told the Daily that Lotte has developed its business through M&A deals in China and Indonesia. The group acquired Makro hypermarket chain in China in 2007, developing a network of over 100 outlets.
Similarly, the group has also acquired Makro system in Indonesia and opened around 40 centers so far. In Vietnam, Lotte Mart is also interested in M&A, Hong said, but giving no further information about its M&A plan.
Lotte Mart reportedly eyes the local Pico store chain as it is going to open a commercial center at the Pico Plaza next month. However, a source from Lotte Vietnam said that it has hired space at the location to set up a store.
In the free trade agreement between Vietnam and South Korea which will be signed soon, Vietnam will relax requirements for Korean retailers. Lotte Mart can fasten its expansion scheme, Hong added.
In addition, Lotte Mart Vietnam has plans to develop other retail models such as convenience stores and minimarts. In Korea, it has opened over 3,000 convenience stores and around 1,000 minimarts.
Source english.thesaigontimes.vn