Aeon given month end deadline to begin work on Central Vietnam mall

Thanh Hoa authorities have asked Japanese retail giant Aeon’s Vietnam subsidiary to kick off construction of a mall project in the central province by August 30.

In a recent document sent to Aeon Mall Vietnam and its Vietnamese partner Mien Trung South City Two Member Company Limited, the authorities said beginning work on the mall would be part of activities celebrating the 79th anniversary of Vietnam’s National Day (September 2, 1945-2024).

Provincial authorities also requested Aeon Mall Vietnam and its partner to speed up implementation of land transfer for the project.

In July, Thanh Hoa People’s Committee had approved the transfer of a 10.5-hectare plot from Mien Trung South City Two Member Company Limited to Aeon Mall Vietnam.

Aeon has also been asked to work with relevant agencies to receive construction permit for the mall by August 23.

The company is set to invest VND4,157 billion ($164.9 million) in the mall, which will have a total floor area of 23.5 hectares.

Aeon now operates six malls in the country: two each in Hanoi and Ho Chi Minh City; and one each in Hai Phong city and Binh Duong province.

It earned an operating income of JPY1,332 million ($8.44 million) in Vietnam in the first quarter of fiscal year 2024 (March-May 2024), up 21.9% year-on-year. The retailer recorded operating revenues of JPY4,013 million ($25.42 million) in the three-month period, up 13.8% year-on-year.

Aeon has begun work on two malls in Vietnam this year. In January, it kicked off construction of a 13-hectare mall in the northern province off Quang Ninh. This VND5,200 billion ($214 million) project is being implemented in collaboration with local business Viet Phat Group JSC.

In May, it began building the VND1 trillion ($39.3 million) Aeon Tan An shopping center in Long An province, its first project in the Mekong Delta.