Japan retailer Aeon to build $35 mln mall in northern Vietnam

Japanese retailer Aeon will invest $35 million in building a mall in Phu Ly town, Vietnam’s northern province of Ha Nam.

Ha Nam authorities, Aeon Vietnam and local firm Tuan Kiet Ha Nam Trading and Service JSC signed a memorandum of understanding for the move in Ha Nam province last weekend.

At the signing ceremony, Ha Nam Chairman Truong Quoc Huy highlighted the province's advantages for the project, including local shopping demand and the prime location of Phu Ly town. Another strength is tourism attractions in the province with many projects, such as a recreational park invested by local giant Sun Group set to open in 2025.

Ha Nam will facilitate Aeon to conduct its investment, Huy added.

For his part, Aeon Vietnam general director Furusawa Yasuyaki emphasized that with its pacey economic growth and prime location, Ha Nam has been attracting investments from Japanese firms. As a result, Aeon investing in the province is inevitable, he added.

To date, there are seven Aeon outlets in Vietnam: two each in Hanoi and Ho Chi Minh City; and one each in the southern province of Binh Duong, the northern city of Hai Phong and the central province of Thua Thien Hue. Of these, the latest to open is in Thua Thien Hue.

The Japanese retailer typically collaborates with local firms in Vietnam to build malls per the Aeon model. For its ongoing project in Hai Duong province neighboring Ha Nam, Aeon is collaborating with local firm Tuan Kiet HD to build a 3.6-hectare Aeon mall with an investment of VND1,220 billion ($50 million).

In its March-August 2024 (first half of fiscal year 2024) review, Aeon said it made an operating income of JPY2,414 million ($16.2 million) in Vietnam, up 21.2% year-on-year, on operating revenues of JPY8,192 million ($54.9 million), up 14.5%.