Lotte Mart, an affiliate of South Korea’s leading retailer Lotte Group, has got approval to become a 100% foreign-owned enterprise and increase its charter capital to expand business in the country, said the HCMC Department of Planning and Investment on Monday. Lotte Mart has gained approval to acquire an entire stake of Minh Van Commercial and Production Company, Lotte Mart’s partner in the Lotte Vietnam Commercial Center Co. Ltd. The joint venture as per the investment license granted to Lotte Mart in 2006 had a charter capital of US$65 million, of which Minh Van Company held a 20% stake with a US$13-million contribution and Lotte Mart held an 80% stake with US$52 million. The joint venture up to now has launched two commercial centers into operation in HCMC’s districts 7 and 11.
Besides, Lotte Mart has revised up charter capital of Lotte Vietnam Commercial Center Co. Ltd. from US$65 million to US$120 million to facilitate more projects in Vietnam.
These moves have proved Lotte Group’s determination in speeding up investment in the local retail market. The enterprise has plans to open stores in Danang City and Dong Nai Province’s Bien Hoa City in the rest of this year. Specifically, Lotte Mart Danang supermarket will cover 10,000 square meters in Hai Chau District with the total investment of US$30 million. The project is expected to open in December.
Meanwhile, Lotte Mart Bien Hoa supermarket is built at a cost of US$40 million on an area of 8,300 square meters in Amata commercial center. The store is expected to open in November. According a representative of Lotte Vietnam Shopping, Lotte Mart won licenses for the two projects in October and December last year.
The enterprise also targets to expand its network in Vietnam to 60 supermarkets by 2020 instead of 30 supermarkets like earlier estimation. Lotte is seen as a strong competitor in the retail industry. Other enterprises said that the investor as a 100% foreign-owned enterprise will accelerate the building of supermarket and commercial center projects in the country.