It has been determined that Lotte, which is expanding its distribution business in Vietnam, is considering opening an additional large-scale complex shopping mall in Ho Chi Minh City, the economic center of the south. This strategy is interpreted as an effort to simultaneously target key commercial districts in both northern and southern Vietnam by unveiling a shopping mall similar to the successful Lotte Mall Westlake in Hanoi, in the north.
According to a comprehensive investigation by this outlet on the 22nd, Lotte Department Store is internally considering plans to newly open a large-scale complex shopping mall in major commercial districts of Ho Chi Minh City. The core of the plan is to develop a large shopping mall that combines shopping, dining, and cultural facilities, going beyond the existing department store format.
Currently, Lotte Department Store operates the Diamond Plaza branch in Ho Chi Minh City. This store has recorded favorable performance, including double-digit growth rates in operating profit. However, with a sales floor area of approximately 4,500 pyeong (about 14,826 square meters), it is relatively small, limiting its ability to enhance market influence and bargaining power for brand recruitment. Amidst the concentration of competing distribution facilities such as Japan-based Takashimaya, there are plans to expand influence in the Ho Chi Minh City market through a large-scale complex shopping mall.
The foundation for expanding operations in Ho Chi Minh City lies in the success of Lotte Mall Westlake, located in Hanoi, northern Vietnam. Lotte Mall Westlake is a mega-complex development with a total floor area of 354,000 square meters and spanning from two basement levels to 23 above-ground floors, representing a large-scale project with an investment exceeding 800 billion won (approximately $600 million). Since its opening in September 2023, it has established itself as a representative shopping destination in Hanoi. It is evaluated that the complex mall strategy of aggregating diverse brands while combining dining, cultural, and leisure facilities to increase customer dwell time has received favorable responses from local consumers.
Lotte plans to apply the complex mall model verified in Hanoi to Ho Chi Minh City as well. Ho Chi Minh City is Vietnam's largest economic city and a major consumer market. It is considered a region with abundant shopping demand driven by the growth of the local middle class and an influx of tourists.
It is reported that the specific location for the new store has not yet been finalized. Some voices suggest the possibility that it may be linked to the Tu Diem Eco Smart City project that Lotte is pursuing in Ho Chi Minh City. This project is a large-scale development known to have a total cost of over 3 trillion won (approximately $2.2 billion), featuring a massive complex development project equipped with financial, commercial, office, accommodation, and residential facilities.
Lotte has a medium-to-long-term vision to strengthen its business foundation in key markets in northern and southern Vietnam through the expansion of operations in Ho Chi Minh City, and subsequently expand its business to second- and third-tier cities within Vietnam. Currently, Lotte Department Store operates a total of four overseas stores: three in Vietnam and one in Indonesia.
An industry official stated, "With the successful establishment of Hanoi's Lotte Mall Westlake in the market, we are highly evaluating the growth potential of the complex mall business," adding, "Expanding this successful model to major markets in Vietnam is our current business direction."
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