The deal was concluded during a trip to Vietnam by the China Duty Free and China Tourism mission at the end of March.

"The first duty-free store will be opened in the northern city of Mong Cai in Quang Ninh Province near the Chinese border this year," according to Jonathan Hanh Nguyen, chairman of IPPG. "The second will open next year in the beach city of Nha Tran, Khanh Hoa Province, and the third in downtown Ho Chi Minh City at an unspecified date."

Before the pandemic, Ho Chi Minh City, Khanh Hoa, and Quang Ninh were the top destinations for Chinese tourists.

This year Vietnam is eyeing 18 million foreign arrivals, the same number as the year before the pandemic, along with tourism revenues of $34 billion. China was the largest source of tourists for Vietnam in 2019, receiving 5.8 million Chinese tourists then, or 30 per cent of all foreign arrivals.

In the first quarter of this year, Vietnam received 890,000 visitors from China, an increase of 635 per cent on-year.

According to a survey from Hotels.com, Chinese travellers spend an average of $930 abroad, 58 per cent of it on shopping, especially high-end products.

Vietnam’s duty-free retail is emerging as a new attractive investment channel. In January, Lotte Duty Free signed an MoU for a strategic marketing agreement with hospitality company Modetour.

Under the MoU, both companies will promote the Vietnamese tourism market by expanding customer engagement points and developing tourist-centric offerings that integrate duty-free shopping with travel experiences. The deal was made as South Koreans continue to expand their list of preferred travel destinations in Vietnam, including Danang, Nha Trang, Phu Quoc and Dalat.

Lotte Duty Free currently oversees four duty-free outlets in Vietnam, including one in Danang's downtown area, another at Noi Bai International Airport in Hanoi, Nha Trang International Airport, and Danang International Airport. Its revenue increased by over 350 per cent on-year in 2023, with visitors from South Korea accounting for around 60 per cent of the increase.