Japan retailer Aeon starts building $39 mln mall, first in Vietnam’s Mekong Delta

Aeon Vietnam, under Japanese retailer Aeon, kicked off the construction of Aeon Tan An shopping center with an investment of over VND1 trillion ($39.3 million) in Long An province last Saturday.

The mall is Aeon’s eighth shopping center in Vietnam and the first in the Mekong Delta. Covering 2.1 hectares, construction is set for completion in August 2025, and the mall will employ 600 local people.

Speaking at the event, Aeon Vietnam CEO Furusawa Yasuyuki emphasized that Aeon Tan An is a milestone of Aeon’s activities in Vietnam, marking the retailer’s second-phase development in Vietnam of pacey expansion.

Vietnam is Aeon’s second most important market, only after Japan, the executive added.

For his part, Long An Chairman Nguyen Van Ut highlighted that Aeon’s investment demonstrated Long An’s favorable investment environment for foreign businesses. Long An ranked second in the Provincial Competitiveness Index (PCI) announced earlier this month, he noted.

As of May 2023, Aeon had invested nearly $1.2 billion in Vietnam. At present, Aeon operates six Aeon Mall outlets in the country, two each in Hanoi and Ho Chi Minh City, and one each in Binh Duong province and the northern city of Hai Phong. It is expected to develop an additional 20 shopping malls in Vietnam.

The under-construction Aeon Mall Hue, covering 5.1 hectares in the central province of Thua Thien Hue, will be the Japanese retailer’s seventh mall in Vietnam. Another mall is under construction in the northern province of Quang Ninh.

Japanese retailer Aeon earned operating revenue 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 profit of JPY3,901 million ($25.4 million) in fiscal year 2023, up 27.3% year-on-year, the firm reported.