Lotte Shopping Co. plans to open two to three additional commercial complexes in Vietnam by 2030 as the South Korean retailer seeks to more than double its operating profits, according to CEO Kim Sang-hyun speaking at an investor meeting Monday.
The company aims to achieve ¥1.3 trillion ($940 million) in operating profit by 2030, nearly triple its 2024 level of ¥473.1 billion ($326 million). Revenue targets call for reaching ¥20.3 trillion by decade’s end, signaling ambitious growth expectations that may strain execution capabilities.
Vietnam generated ¥483 billion ($333 million) in revenue for Lotte in 2024, making it the company’s largest overseas market. Yet the retailer posted a ¥10 billion ($6.9 million) operating loss in Vietnam, its only unprofitable international operation, raising questions about expansion timing.
The strategy centers on Lotte Mall West Lake Hanoi, which opened in September 2023 and attracted over 12 million visitors by December 2024. The 354,000-square-meter complex generated cumulative sales exceeding ¥300 billion by year-end, offering a template that management hopes to replicate elsewhere.
Lotte currently operates three department stores and 16 supermarkets across Vietnam, competing against established players including AEON and local retailers in a market valued at approximately $250 billion. The company’s emphasis on Korean cultural themes faces the test of whether novelty can sustain long-term profitability in Vietnam’s increasingly competitive retail landscape.
