Investments

Korean Retail Giant to Launch 2-3 Luxury Shopping Malls in Vietnam

Lotte Shopping, South Korea's leading retailer, has unveiled plans to expand its footprint in Vietnam with the addition of 2-3 new shopping malls. The company aims to double its operating profits by 2030, marking a significant growth strategy in the region.

Administrator

19 September, 2025

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South Korean conglomerate Lotte is targeting Vietnam’s premium consumer segment by leveraging its Korean-style marketing strategy and riding the wave of the Korean trend, which is gaining immense popularity in the country. The group aims to tap into Vietnam’s rapidly growing spending potential.

“By 2030, we plan to open two to three additional shopping complexes in Vietnam, similar to the Lotte Mall West Lake that we launched in September 2023,” said Kim Sang-hyun, Vice Chairman and CEO of Lotte Shopping, during an investor relations meeting on September 15th.

“Our goal is to achieve 20.3 trillion Won in revenue and 1.3 trillion Won (approximately 940 million USD) in operating profit by 2030,” he added.

This profit figure represents more than double the 473.1 billion Won (343 million USD) recorded in 2024, while their revenue reached 14 trillion Won.

Overseas branches are expected to contribute over 18% to Lotte’s profit

South Korea’s fifth-largest conglomerate has been crafting a success story in Vietnam with Lotte Mall West Lake. The 354,000m2 shopping complex, equivalent to the size of approximately 50 football fields, has set itself apart from other domestic retailers by featuring luxury and international fast-fashion brands. Among the 233 stores in the complex, 40% introduce brands previously unavailable in Hanoi. High-end brands like Chanel Beauty, Lancome, and Coach have chosen to establish their presence here.

Cumulative sales at the complex surpassed 200 billion Won by the end of June and exceeded 300 billion Won by the end of December 2024. During the same period, the total number of visitors exceeded 12 million, surpassing Hanoi’s population of 8.6 million. A Chanel pop-up store stands out in the outdoor area of Lotte Mall West Lake Hanoi.

A Chanel pop-up store located in the outdoor area of Lotte Mall West Lake Hanoi

Indonesia

In parallel with its expansion in Vietnam, Lotte is also strengthening its presence in Indonesia as the conglomerate seeks opportunities beyond its saturated and increasingly competitive domestic market, where e-commerce rivals are thriving. In 2018, they became the first South Korean retailer to enter Indonesia, a market dominated by traditional mom-and-pop grocery stores. Currently, they operate 48 Lotte Mart discount stores and one shopping mall across the country.

Lotte’s impressive growth in Southeast Asia contrasts sharply with its experience in China, where the conglomerate withdrew in 2018, a decade after entering what was once considered a promising market. The renowned South Korean family brand had operated five shopping malls and 119 discount stores across China at its peak. However, they faced significant challenges following the outbreak of tensions between China and South Korea in 2018.

In their home market, traditional retail stores are gradually losing ground to e-commerce platforms. According to data from South Korea’s Ministry of Trade, Industry and Energy, the country’s e-commerce market grew by 15.8% year-on-year in the first half of this year, accounting for 53.6% of total domestic retail transactions. In contrast, traditional retail transactions decreased slightly by 0.1% in value, reversing the growth trend maintained since the first half of 2020.

Vu Hao (Source: Korea Economic Daily)

– 13:36 17/09/2025