Lotte Innovate (286940.KQ) is entering Vietnam's data center and electric-vehicle charging infrastructure markets in partnership with local information technology firm CMC Group, expanding a Vietnamese business that has centered on financial IT services into new growth areas.
The company said on the 14th that it signed a memorandum of understanding with CMC Group in Hanoi for strategic business cooperation. CMC Group is a Vietnamese IT company whose main businesses include software development, artificial intelligence, cloud services and digital infrastructure.
Under the agreement, the two companies will seek joint business opportunities in five areas: hyperscale data centers, EV charging point operation, cybersecurity, offshore IT services and cloud computing. In data centers, Lotte Innovate will draw on the design, build and operate capabilities it has developed in South Korea to assess potential participation in Vietnamese hyperscale projects. In EV charging, it will explore local business based on the charging infrastructure construction and operating technology of its subsidiary EVSIS. The companies also plan to link their technologies and business networks in cybersecurity and cloud services.
Lotte Innovate has built experience in Vietnam's financial IT market through projects including the construction and operation of IT systems for Agribank Vietnam and IT infrastructure work tied to Industrial Bank of Korea's Vietnam operations. The company said it will use the partnership to develop Vietnam into a strategic hub for its Southeast Asian business and to diversify beyond financial IT and systems operation into data centers and EV charging infrastructure.
"We are expanding our business areas based on the financial IT experience we have accumulated in Vietnam and the data center and EV charging infrastructure capabilities we have secured in South Korea," said Choi Jong-pil, head of Lotte Innovate's Vietnam unit. "Through cooperation with CMC Group, we will strengthen our local business base and uncover new business opportunities."