Korea’s Lotte Shopping earns $302 mln in Vietnam in 2023, up 16%

Lotte Shopping, under South Korean conglomerate Lotte, earned a total revenue of KRW403 billion ($302.4 million) in Vietnam in 2023, up 16% year-on-year, according to its financial statement.

The department store business made a revenue of KRW40 billion ($30 million), up 83.5% year-on-year. The figure was the highest among all of Lotte Shopping's overseas businesses, followed by Indonesia with KRW20 billion and China with KRW20 billion.

The hypermarket segment posted a revenue of KRW363 billion ($272.4 million), up 11.2% year-on-year. The result was the lowest posted by Lotte Shopping overseas. South Korea, the home market, accounted for the biggest portion of KRW4,281 billion, followed by Indonesia with KRW1,091 billion.

In terms of operating profit, Lotte Shopping’s department store business in Vietnam made a loss of KRW19 billion ($14.3 million) in 2023, versus KRW0 in 2022. Meanwhile, the hypermarket segment’s operating profit rose 27.7% year-on-year to KRW25 billion.

Lotte Shopping highlighted the hypermarket segment in Vietnam recorded continuous growth in operating profit margin, from -0.4% in 2021 to 6.1% in 2022 and 7% in 2023.

At the end of 2023, the firm had three department stores and 16 hypermarkets in Vietnam.

Lotte Mall West Lake, Lotte's latest major addition in Vietnam, was opened in September 2023. Lotte earned revenues of KRW100 billion ($74.8 million) from the complex between the establishment and mid January 2023. It attributed the strong performance to high consumer spending, driven by rising incomes.

Last week, Lotte Vietnam Shopping JSC expressed an interest in building an establishment in Quy Nhon town, a tourism hub in Binh Dinh province.