SEOUL: South Korean Lotte coffee flavor company increases investment in Vietnam. This was just the first move of Lotte Group’s determination to expand in Vietnam. Also in March, Lotte was involved in a $250 million coffee planting project in Dak Lak Province.
The Korean giant wants to participate in cultivation and processing of coffee products. Lotte wants to be granted 4,000-5,000 hectares of land to build factories and grow coffee according to their standards. Lotte representatives said this project was within their plan to produce finished coffee products of high added value, for example canned coffee.
With its chain of Lotteria fast food restaurants and an extensive retail network, it is easy for Lotte to launch canned coffee in Vietnam and other countries. Meanwhile, Vietnam is the second largest country in the world for coffee production and Korea is a big market for Vietnam’s coffee. Lotte is holding many advantages in this project.
However, the land that Lotte needs is quite large. Dinh Van Khiet, Dak Lak’s deputy chairman, said the two sides were discussing to find the most suitable plan for the project.
The production and export of coffee in Dak Lak in the past few years have been falling so the province is trying to call for investment to improve the quality and increase exports of coffee.
“If this project is successful, Dak Lak will definitely get a new push to promote development,” Khiet said.
This is not the first time Lotte has invested in the agricultural sector in Vietnam. In early 2014, when the Ca Mau Seafood Processing and Import-Export JSC (Camimex) faced difficulty, Lotte became a partner to support this business. The Korean group provided additional capital and technological support, and helped boost Camimex’s shrimp exports to South Korea.
This is a step in favor of Lotte because South Korea is the 3rd largest shrimp import market of Vietnam. Camimex is the largest shrimp raising and processing firm in Ca Mau and among the top biggest shrimp exporters of Vietnam. In 1998, Lotte’s Lotteria fast food brand set foot in Vietnam. Lotte then caught public attention with its merger and acquisition affair with BIBICA confectionery manufacturer. The Korea group is also known in Vietnam with Lotte Mart, Lotte Cinema, and Lotte Home Shopping.
