HANOI, Vietnam : South Korean conglomerate Lotte Group will invest $5 billion in the next 15 years to develop 30 supermarkets in Vietnam to tap the Southeast Asian country’s fast-growing retail market, state media reported Thursday.
The company opened its first Lotte Mart supermarket in Ho Chi Minh City on Wednesday with an investment of $75 million, the Youth newspaper quoted Dao Thi Minh Van, deputy general manager of Lotte Vietnam, a Lotte Group subsidiary, as saying.
Lotte will invest in four more retail outlets in the southern commercial hub and 10 others in the capital Hanoi, the northern port city of Haiphong, the central city of Danang and the southern Mekong Delta city of Can Tho in coming years, Van was quoted as saying.
Lotte Vietnam will eventually have 30 supermarkets in Vietnam with a total investment of $5 billion by 2024, Van said.
U.S. based management consulting firm A.T. Kearney said in June that Vietnam had ended India’s three-year reign as the most attractive emerging market destination for retail investment.
Vietnam with a population of 86 million has sustained GDP growth of at least 7 percent annually over the past decade.
The country’s retail market reached $52 billion in the first 11 months of this year, posting an increase of 31 percent against the same period of last year, according to government figures.
German Metro, French Big C and Malaysia-based Parkson have opened retail outlets in Vietnam.