Aeon posts $8.4 mln operating profit in Vietnam, plans new mall opening

Japanese retailer Aeon earned an operating income of JPY1,332 million ($8.44 million) in Vietnam in the first quarter of its 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.

This was its highest intake among ASEAN nations and the second-highest in overseas markets, only behind China, the company reported.

Reviewing its Vietnam performance, Aeon said promotions related to Lunar New Year (Tet holiday in February) and International Women’s Day (March 8) to push sales of jewelry, cosmetics, food, gifts and anniversary-related items had been successful, in general.

However, some areas in southern Vietnam were still affected by a slowdown in economic growth owing to underperformance by some export-oriented factories.

Previewing upcoming activities, Aeon said it plans to open Aeon Mall Hue in the central province of Thua Thien-Hue within the second half of 2024. This will become Aeon’s seventh mall in Vietnam, the company said, noting that Thua Thien-Hue province was the third-largest economy in the country's central region.

Globally, Aeon recorded an operating income of JPY15,472 million ($98.92 million) and an operating revenue of JPY109,432 million in the first quarter of the fiscal year, up 11.4% and 3.7% year-on-year, respectively.

Of the six Aeon malls operational in Vietnam, Hanoi and Ho Chi Minh City host two each; and the remaining two are hosted by the southern province of Binh Duong and the northern port city of Hai Phong.

In January 2024, Aeon Vietnam, a joint venture between Japanese retailer Aeon and local business Viet Phat Group JSC, kicked off construction of a 13-hectare mall with an investment of VND5,200 billion ($214 million) in the northern province of Quang Ninh. The facility, located near the famous tourism destination of Ha Long Bay, is expected to employ about 2,500 people and serve 10 million customers a year.

In May, Aeon Vietnam began building the Aeon Tan An shopping center with an investment of over VND1 trillion ($39.3 million) in the southern province of Long An This will be its eighth outlet in Vietnam and the first in the Mekong Delta. Covering 2.1 hectares, construction is set for completion in August 2025, and the shopping center is expected to employ 600 locals.