Lotte Duty Free currently runs stores in Indonesia, Japan and Guam. — Photo Yonhap News Agency

Lotte Duty Free, the travel retail arm of South Korean conglomerate Lotte Group, is making a foray into the Vietnamese market for the first time as a Korean duty-free retailer.

It seeks to diversify revenue sources after local outlets were hit hard by thinning Chinese visitors, according to pulsenews.

The company said last week it had opened in May a duty-free shop in Da Nang, a popular tourist destination in Viet Nam. The shop called Phu Bkanh Duty Free was set up in a joint venture between Lotte and a Vietnamese company, with the Korean company holding a 60 per cent stake.

The 1,000-square metres outlet is situated in the Da Nang International Airport. The store will be operational as early as August, said a Lotte Duty Free official.

Following the opening of the Phu Bkanh Duty Free, the Korean travel retail company plans to open additional stores in HCM City, Ha Noi and other major cities in Viet Nam.

Lotte Duty Free, which currently runs stores in Indonesia, Japan and Guam, plans to open another shop in Bangkok this month. — VNS