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$75m Korean supermarket opens in City

Update: December, 18/2008 - 00:00

$75m Korean supermarket opens in City

(19-12-2008)

HA NOI — The first supermarket of South Korea-based, top retailer Lotte Mart opened in HCM City yesterday. The store is worth over US$75 million.

This is the first of 30 supermarkets the South Korean retailer is planning to open in Viet Nam’s major cities over the next 15 years. The rolling-out operation will cost $5 billion, according to Lotte Mart’s estimates.

The General Director of Lotte Viet Nam, Lee Sang Woo, said the Lotte South Sai Gon Supermarket is the largest trading centre in Viet Nam, totalling 33,000sq.m.

The supermarket will import nearly 10 per cent of goods from South Korea and most of the remaining goods from local markets.

Lee said he expected to turn the mall into a cultural, entertainment and shopping centre of South Sai Gon.

Joint venture

Lotte Mart launched stores in Viet Nam through a joint venture with Minh Van Company named Lotte Shopping Viet Nam Co Ltd .

The Korean investor contributed 80 per cent of capital as part of the deal. This is Lotte Mart’s first overseas joint venture, though it has 90 supermarkets in four countries.

Lotte Mart received an investment licence for Viet Nam just three days before Viet Nam joined the World Trade Organisation (WTO) in 2006.

Lotte is the first major foreign retailer to enter Viet Nam since it joined the World Trade Organisation.

Last year Hong Kong’s Wellcome joined the local distribution market, but rented five supermarkets from Vietnamese retailer Citimart.. — VNS

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