Friday, March 1, 2024

Email id: support@kenresearch.com, Contact Us : +91-9871552944

Home Automotive, Transportation and Warehousing Lotte Group Pivots: Vietnam Beckons as China Exit Nears: Ken Research

Lotte Group Pivots: Vietnam Beckons as China Exit Nears: Ken Research

Lotte Group embraces Vietnam’s potential while withdrawing from China, capitalizing on the country’s promising market opportunities.

Storyline

  • Lotte Group shifts focus: Vietnam’s retail and F&B industries.
  • Expansion plans: Lotteria restaurants, Lotte Mart hypermarkets, and more.
  • Vietnam’s growth potential: Favorable market conditions and rising consumer income.
  • As per Ken Research, the company’s retaliation aftermath will lead to strategic realignment.

South Korea based Lotte Group, the country’s fifth-largest conglomerate, is accelerating its expansion in Vietnam’s retail and F&B sectors as it finalizes its recent withdrawal from the Chinese market. Following his recent release from jail and receiving a presidential pardon, Chairman Shin Dong-bin is poised to visit Vietnam, signaling the group’s determination to pursue business in its “third-most important market” after South Korea and Japan. Lotte’s focus on Vietnam comes as the company’s top executives have been closely monitoring their opportunities in the country, recognizing the growth potential and favorable business environment.

1. Growing Presence in Vietnam

ABA Cooltrans Market Share

To learn more about this report Download a Free Sample Report

Lotte boasts an expansive presence in Vietnam, with 270 Lotteria fast-food restaurants and 15 Lotte Mart hypermarkets. Additionally, Lotte’s subsidiaries are actively involved in the development of shopping complexes and residential apartments in major cities like Hanoi and Ho Chi Minh City. The establishment of Lotte Ventures Vietnam last year further solidifies the group’s commitment, making it the very first foreign venture capital firm approved in the country.

2. Vietnam’s Favorable Market Conditions

Emerging Companies Vietnam Cold Chain Market

Visit this Link: – Request for custom report

The decision to focus on Vietnam is driven mainly by the country’s strong retail sector, experiencing significant growth, and a rising disposable income level. Lotte recognizes Vietnam’s potential as a strategic market, benefitting from Korea’s positive reputation and strong consumer demand. The group views Vietnam as a key growth driver in the region, offering ample opportunities for expansion and development.

3. Exit from China

Lotte Logistics Market Revenue

Lotte’s exit from the Chinese market comes after 14 years of operation, as it faced challenges due to alleged retaliation from China following the deployment of the THAAD missile defense system in 2017. The decision to fully divest from China reflects the company’s strategic realignment and its focus on emerging markets with more favorable growth prospects.

Conclusion

Lotte Group’s intensified focus on Vietnam’s retail and F&B industries signifies its commitment to leveraging the country’s growing market potential. As per Ken Research, as the conglomerate completes its withdrawal from China, it aims to capitalize on Vietnam’s favorable business environment and consumer-driven growth. Lotte’s expansion efforts in Vietnam highlight its strategic vision and determination to establish a strong presence in one of Southeast Asia’s most promising markets.

RELATED ARTICLES

Electric Vehicle Market Value, Size, Growth, Trends, EV Industry

The global automotive landscape is undergoing a revolutionary transformation, with the rise of Electric Vehicles (EVs) emerging as a key driving force. This paradigm...

Hybrid Vehicle Market Size, Share, Growth Analysis

The automotive industry is in the midst of a transformative era, and one of the key players driving change is the Hybrid Vehicle Market....

Lubricants Market Size, Share – Industry Analysis, Trends

The Lubricants Market: A Pinnacle of Industrial Efficiency In the vast landscape of industrial and automotive sectors, lubricants play a crucial role in ensuring smooth...

Most Popular

Electric Vehicle Market Value, Size, Growth, Trends, EV Industry

The global automotive landscape is undergoing a revolutionary transformation, with the rise of Electric Vehicles (EVs) emerging as a key driving force. This paradigm...

Industrial Engineering Market: A Market Poised for Growth

The industrial engineering market, a vital cog within the engineering service industry (valued at an estimated USD 1,024 billion in 2018), encompasses various disciplines...

Gluten Free Food Market Size, Growth Outlook 2023 – 2032

The global gluten-free products market, valued at USD 6.5 billion in 2022, is experiencing substantial growth, with a projected CAGR of 8.8% from 2023...

Data Center Market Size, Growth, Trends, and Future Outlook

The data center market is experiencing explosive growth, fueled by the ever-increasing demand for data storage, processing, and connectivity. These facilities, which house the...