South Korea’s Lotte Vietnam Shopping is facing a payment of VND187.3 billion ($8.3 million) in arrears for rent at its Lott Mart location in the southern province of Ba Ria-Vung Tau. Lott Mart location in the southern province of Ba Ria-Vung Tau According to a government inspector’s report for land use in Ba Ria-Vung Tau during the 2011-2016 period, Lotte Vietnam Shopping JSC has been using the land in Ba Ria-Vung Tau illegally by building a Lotte Mart department store on it – which has been operating since December 2014 – despite not yet having received a land use right certificate. The local authorities have been blamed for giving the okay to the South Korean firm to build its store despite lacking such a certificate. The official inspection report said, “The responsibility was that of the chairman of the Ba Ria-Vung Tau People’s Committee, the director of the Department of Natural Resources and Environment, and the director of the … [Read more...] about Lotte Mart faces sizeable payment for rent in arrears
Lotte Vietnam said that it takes an average of 5-8 years from the opening day to the breakeven point, but this company has still reported an accumulated losses of VND800 billion ($35.2 million) over the last 11 years in Vietnam. The Lotte Mart in Can Tho is one of 13 locations in Vietnam Lotte Vietnam Shopping JSC started operations in Vietnam at the end of 2006 in the retail distribution sector. This is the most potential retail and distribution market in Asia due to the young labour force, high-speed urbanisation, and the development of industrial production and services. Thus Lotte Vietnam Shopping decided to invest into trade centres across big cities and provinces in the country, as well as upgraded on-going centres, invested into facilities, and improved selling policies and services while all investors are developing fast. Jeong Seong Won, chief finance officer of Lotte Vietnam Shopping, committed to long-term investment and accepted short-term losses. "In order … [Read more...] about When Lotte Vietnam to turn profit?
A Lotte Mart store in HCM City. — VNS Photo Lotte Vietnam Shopping Joint Stock Company (Lotte Mart Vietnam) has written to the Ministries of Information and Communications and Finance and the media dismissing the false reports in some newspapers that it has made losses of VND2.3 trillion (US$100.87 million) in its 11 years in Viet Nam. The reports have seriously affected its operations and consumers’ trust, it claimed. It said its financial reports audited by PwC Vietnam showed that until the end of last year it had only lost VND800 billion ($35.08 million), and its owner’s equity is now VND1,600 billion. The South Korea retailer explained that while it opened its first shopping mall in Viet Nam in 2008, it then opened 12 other malls and hypermarkets from 2009 to 2016, and each needs five to eight years to break even. Besides, since 2008 it has invested more than VND8.9 trillion in infrastructure, strategic premises and modern equipment for its13 malls and … [Read more...] about Lotte Mart rejects loss reports
Lotte Shopping Holdings Hong Kong Co. has just sold most of its outlets in China to local companies for over $505 million. Will Vietnam be the next target to cut ends for this group after ten years of consecutive losses? Lotte Mart Centre in Vung Tau city South Korean giant retailer Lotte has just announced selling one of its discount store chains to local retailer Liqun Group. This is a major step toward withdrawing from China, the world’s second-largest economy. Lotte Shopping Holdings Hong Kong Co. will sell 100 per cent of its stake in its Chinese unit that operates Lotte Mart in Shanghai and nearby areas to Liqun Group for KRW291.4 billion ($272.7 million), the Korean firm said in a regulatory filing. Liqun is expected to buy 53 outlets, with the remainder likely to be shuttered. Two weeks ago, Lotte Shopping decided to sell off 21 Lotte Mart stores in Beijing to local distributor Wumei Holdings Inc. They include 10 discount stores and 11 supermarkets in Beijing at … [Read more...] about Vietnam could be Lotte Mart’s next target for withdrawal after China
South Korean conglomerate CJ's CJ CGV Vietnam, the leading film distributor and movie theatre operator in Vietnam, reported VND2.8 trillion ($122.7 million) in revenue in 2017 with a market share of 47 per cent, running laps around competitors. CJ CGV Vietnam acquires $122.7 million in revenue in 2017 Dominating Vietnam’s movie theatres CJ CGV owns a series of movie theatre chains in numerous countries. According to its financial statement of 2017, CJ CGV Vietnam acquired an average VND7.6 billion ($333,126) per day, equalling VND2.8 trillion ($122.73 million) for the whole year with a net profit of VND140 billion ($6.1 million), up 30 per cent on-year. By the end of 2017, CJ CGV Vietnam’s multiplex movie theatres had 324 screens across the country. Its market share was 47 per cent, up 7 per cent on-year. In July 2011, CJ CGV completed the purchase of an 80 per cent stake in Megastar Media Company (Megastar), Vietnam's leading cinema owner and film … [Read more...] about CJ CGV Vietnam report stellar 2017 performance