Banking & Finance

Lotte Card launches long-term rental car card in Vietnam

Mi-Hyun Jo

Oct 30, 2024 (Gmt+09:00)

South Korea's Lotte Card Co. launched a long-term car rental exclusive card in Vietnam to expand its presence in the local market.

Its Vietnamese subsidiary, Lotte Finance Vietnam, said on Wednesday it partnered with Lotte Rental Co.’s Vietnamese branch, Lotte Rental Vietnam, to introduce this new card to local customers.

Lotte Finance Vietnam plans to offer tailored long-term car rental products by analyzing customer credit with its proprietary credit assessment model.

It also aims to provide convenient financial services, such as automatic rental fee payments via the exclusive card.

Lotte Rental Vietnam, which entered the Vietnamese market in 2007, offers commuter bus operations along with long- and short-term car rental services.

Initially focused on business-to-business (B2B) long-term rentals, the company expanded into the business-to-consumer (B2C) market this month. It currently operates approximately 1,300 vehicles, with plans to increase this to 10,000 by 2028.

Since entering the market in 2018, Lotte Finance Vietnam has focused on credit management and a strong asset portfolio, achieving profitability as of June this year—marking its first profitable month since establishing operations six years ago.

Lotte Card expressed optimism about achieving its first full-year profit in 2024.

Lotte Finance Vietnam plans to accelerate growth in quality assets and expand its footprint in the Vietnamese consumer finance market by leveraging its proprietary credit evaluation model, digital marketing, partnerships with local businesses, and a focus on high-quality customers such as office workers and government employees.

Write to Mi-Hyun Jo at mwise@hankyung.com

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