[THE INVESTOR] Lotte Duty Free said on June 2 it has set up a joint venture in Vietnam along with a local partner.
The company said it owns a 60 percent stake in Phu Khanh Duty Free, without naming the Vietnamese partner.
The first duty-free store opened on a 1,000 square-meter site at Da Nang International Airport in May. After months of a test-run, the official opening is expected in August.
“We plan to open more stores in major cities such as Ho Chi Min and Hanoi, depending on market conditions,” a company official said.
The latest store opening comes after the Korean retail giant saw sales plunge amid diplomatic tensions between Korea and China over the deployment of US-made THAAD missile system.
Lotte is expected to diversify its key markets, especially in Southeast Asia. Currently, it operates six duty-free outlets outside Korea including in Japan, Indonesia and Guam. Another store is opening in Bangkok next month.
By Song Seung-hyun (firstname.lastname@example.org)