Japan giant Aeon plans 2 new malls for Vietnam

Aeon is speeding up work to develop two new shopping malls in Vietnam, which the Japanese retail giant has described as "the most significant market in Southeast Asia".

Aeon Mall Vietnam signed a memorandum of understanding (MoU) with officials of Dong Nai province on Sunday to accelerate the former’s $268 million investment for a shopping mall in Bien Hoa town, capital of the southern province that neighbors Ho Chi Minh City.

The signing took place on the sidelines of Japanese Prime Minister Kishida Fumio’s three-day visit to Vietnam to boost the two countries’ economic and security ties.

The signed MoU seeks to accelerate development of the planned mall. Aeon Mall Vietnam CEO Nakagawa Tetsuyuki said he committed to carry out procedures on investment, land use, construction and other related issues under Vietnamese laws to put the project into operation "at the soonest".

The retailer also committed to closely work with Dong Nai officials in promoting the province’s business environment among Japanese companies and investors.

Aeon had earlier planned to build two malls in Dong Nai – one for the 2021-25 period and the other for 2026-2030.

In 2020, Aeon Group said it would invest $2 billion expanding its presence across Vietnam, eyeing a total of 25 malls by 2025. It was then operating five malls in the country – two malls in Hanoi, two in HCMC and another in adjoining Binh Duong province. The Japanese group entered the market in 2013.

Also, on the sidelines of the Japanese Prime Minister’s visit, the CEO of Aeon Mall Vietnam secured Thua Thien-Hue province’s green light to build a mall in the iconic town of Hue, with a total investment of VND3,916 billion (around $170.5 million).

The detailed timelines for the project of more than 86,000 square meters have been not made known, but Aeon plans to put it into operation during 2023.

Aeon’s announced-in-2020 strategy of expanding in Vietnam is to build centers in suburban districts rather than downtown locations, shaping its offer to local communities and mixing local goods with imported products.

Aeon Vietnam already has a program in place that boosts exports of Vietnamese goods to stores it operates outside the country.