Japan retailer Aeon sees Vietnam operating revenue rise 15% in fiscal year 2023

Japanese retailer Aeon earned operating revenues of JPY15,263 million ($99.3 million) in Vietnam for fiscal year 2023 ending February 2024, up 14.9% year-on-year.

With this performance, it recorded an operating income of JPY3,901 million ($25.4 million) in fiscal year 2023, up 27.3% year-on-year, the firm reported.

An Aeon report noted this was a strong performance, given “the impact of slowing economic growth stemming from sluggish external demand and power shortages.”

The operating revenues and incomes in Vietnam were the highest in ASEAN and the third in the world behind Japan, Aeon’s home market, and China.

Notably, Aeon’s operating income in Vietnam was the only upward move overseas, while those in China and Cambodia went down 1.5% and 64.1%, respectively. In Indonesia, Aeon recorded operating losses.

As of end February 2024 (fiscal year 2023), Aeon’s assets value in Vietnam, including property, plant and equipment, reached JPY72,268 million ($470 million), up 10.2% year-on-year.

Previewing future operations until February 2025 (fiscal year 2024), Aeon said it planned to “open two new malls in China and one new mall in Vietnam.”

The new Vietnam outlet, Aeon Mall Hue, located on an area of 5.1 hectares in the central province of Thua Thien-Hue, will be the Japanese retailer’s seventh mall in Vietnam.

Hanoi and Ho Chi Minh City host two each of the six operational Aeon Malls in Vietnam; and the remaining two are located in southern province of Binh Duong and northern city of Hai Phong, both production centers.

The retailer has said it plans to expand its network to 25 oulets in Vietnam by 2025, with new malls planned in the provinces of Binh Duong, Dong Nai, Thanh Hoa, Thua Thien-Hue, Hai Duong, Nam Dinh and other localities.