Aeon to build $190 mln mall in central Vietnam

The construction of a $190-million Aeon Mall in central Vietnam's Thanh Hoa province is set to begin in September and complete in one year.

Thanh Hoa's Vice Chairman Nguyen Van Thi announced the news at a conference in the province late last week to commemorate 50 years of Vietnam-Japan ties.

According to a memorandum of understanding signed between Thanh Hoa authorities and Aeon Vietnam Company Limited, the mall, the Japanese giant's first in the province, will be located in Quang Thanh ward, Thanh Hoa town.

It will be the largest of its kind in the country and a major trading hub between Vietnam and Japan, Thi added.

Japanese retailer Aeon Mall recorded an operating income of JPY3.063 billion ($22.92 million) in Vietnam for fiscal year 2022 (March 1, 2022-February 28, 2023), a massive improvement from a loss of JPY83 million ($621,000) in 2021, according to its latest reports.

Aeon Mall made an operating revenue of JPY13.283 billion ($99.38 million) in Vietnam in FY 2022, its highest among ASEAN nations. The figure went up 224.2% year-on-year and 245.1% versus pre-pandemic 2019.

The retailer has seven malls in Vietnam, including two in Ho Chi Minh City, one in the southern province of Binh Duong, one in the northern city of Hai Phong, and three in Hanoi.

It plans to expand the network to 25 in Vietnam by 2025, with new malls planned in the provinces of Binh Duong, Thua Thien-Hue, Hai Duong, and others.

With 17 foreign direct investment (FDI) projects worth $12.53 billion, Japan is the biggest foreign investor in Thanh Hoa, accounting for 86% of the total. Major projects include the $9 billion Nghi Son oil refinery, the $2.73 billion Nghi Son 2 thermal power plant, and the $622 million Nghi Son cement plant.

Under Thanh Hoa's plan approved the Prime Minister for 2021-2030, with a vision to 2045, the province will become the country's main hub for heavy industries, energy, manufacturing-processing, large-scale agriculture, logistics, tourism, education-training, healthcare, and culture-sports.

By 2025, Thanh Hoa, Hanoi, Hai Phong city, and Quang Ninh province will become four economic pillars in the north of the country.