What: Lotte shifts strategy in Vietnam, abandoning a major property project to prioritise supermarket, department store, and shopping mall expansion.

Why it is important: Lotte’s strategy underscores how global retailers are adapting to local legal complexities and leveraging successful models to achieve ambitious profit targets.

Lotte Group has decided to withdraw from its long-delayed Eco Smart City project in Ho Chi Minh City’s Thu Thiem district, ending nearly a decade of stalled progress due to regulatory delays and shifting legal frameworks. The project, once envisioned as a modern mixed-use complex with luxury retail, residences, and smart city infrastructure, was valued at approximately US$761 million. Despite this setback, Lotte is reaffirming its commitment to Vietnam by focusing on its core retail strengths, planning to expand its network of supermarkets, department stores, and high-end shopping malls. Building on the success of Lotte Mall West Lake Hanoi, the company aims to open two to three additional malls in key urban markets and more than double its operating profits by 2030. This strategic pivot reflects both the challenges and opportunities facing international retailers in Vietnam, where regulatory complexities and rapid market evolution require agility and a focus on proven retail models.

IADS Notes: Lotte Group’s decision to withdraw from the Eco Smart City project in Thu Thiem marks a clear pivot in its Vietnam strategy, shifting focus from large-scale property development to expanding its core retail operations. This transition is underscored by Lotte’s announcement in Korea JoongAng Daily in October 2024 of a $5.06 billion investment plan to grow its shopping mall business by 2030, with Vietnam as a key market for international expansion. The success of Lotte Mall West Lake Hanoi, which contributed to a 4.7 percent increase in overseas sales as reported by Inside Retail in January 2025, exemplifies the effectiveness of high-end retail models in Southeast Asia. At the same time, Vietnam’s retail sector is experiencing rapid growth but faces persistent regulatory and legal challenges, as highlighted by Inside Retail in March 2025, requiring international retailers to adapt their strategies. Lotte’s transformation, including a 44.3 percent year-on-year operating profit increase in May 2025 as covered by Inside Retail, and ambitious sales targets of $14.8 billion by 2030 reported by The Korea Times in October 2024, demonstrates the group’s commitment to innovation and market leadership through a balanced approach to physical and digital retail, even as it navigates the complexities of emerging markets.
Lotte axes major Vietnam project – but promises more malls