Deputy PM voices support for Lotte business expansion

10:30 | 11/09/2018 Finance - Banking

The Vietnamese Government is supportive of Lotte group’s expansion into business fields of strength, including consumer finance, Deputy Prime Minister Vuong Dinh Hue assured Chairman and CEO of the Republic of Korea (RoK)’s Lotte Card Kim Chang-kwon during a recent reception in Hanoi. 

Deputy PM Vuong Dinh Hue (R) and CEO of Lotte Card Kim Chang-kwon - Source: VNA

Hue said the Vietnamese Government is keen to improve consumer finance via fintech and mobile payment technologies, contributing to the promotion of cashless payment.

He also called attention to retail, including bringing more Vietnamese products to Lotte’s shopping malls, especially those under the “One Commune, One Product” program.

The host said that Vietnam wants to build an ecological system for fintech and mobile payment systems, such as with the legal policy framework which is currently being studied by the State Bank of Vietnam (SBV), the Ministry of Finance, and the Ministry of Justice.

The Government welcomes Korean firms to share experience in the field which would be helpful to not only Vietnamese firms, but also other foreign companies operating in the country, including those from the RoK, he said.

He informed his guest that the Vietnamese Government is directing the SBV to review the restructure of financial and credit system.

Hue said that if any difficulties arise during Lotte Card’s purchase of Techcombank’s financial company, it could report to the PM in order to be assisted with favourable conditions for its operations.

Kim, for his part, said since its operations in Vietnam in 1996, Lotte Corporation now has 18 companies in Vietnam with nearly 16,000 employees, 308 points of sale and shops. In late 2017, Lotte earned US$1 billion in revenue.

In Vietnam, Lotte Card now has about 1.5 million clients in supermarkets and shopping centers. The purchase of Techcombank’s financial company will make it easier for Lotte Card to grow, he said.

With years-long experience in finance and credit, Lotte Card wants to contribute its experience to Vietnam’s development regarding payment via cards and mobile phones, fintech, findata, and doing business on digital platform, he said.

Theo VNA