Japanese retailer Aeon to break ground on 4th shopping mall in northern Vietnam

Japan’s Aeon Mall Vietnam will start construction of a VND5.14 trillion ($202.2 million) shopping center project in the northern province of Quang Ninh, home to UNESCO natural heritage site Ha Long Bay, on December 2, according to provincial authorities.

The mall project, covering nearly 91,000 square meters on Cai Lan street, Bai Chay ward, Ha Long town, is set to be completed on April 30, 2025.

It will feature five floors, one attic, and one basement, with a total floor area of about 200,000 square meters.

Earlier, in October, Aeon Mall announced its investment plan for the shopping center project in Ha Long, the fourth of its kind developed by the Japanese retail giant in the northern region, following those in Hanoi and Hai Phong.

In January, the Quang Ninh provincial People's Committee approved the results of a land use rights auction for the project. The winning bidders were Viet Phat Group Joint Stock Company and Aeon Mall Vietnam Co., Ltd., with auction value exceeding VND764 billion ($30.06 million), or more than VND8.3 million per square meter. The land lease term is 50 years, under a one-time payment method.

Currently, Aeon Mall operates seven shopping centers in Vietnam, with a total leased area of approximately 462,000 square meters. They are located in Ho Chi Minh City, Hanoi, Hai Phong, Binh Duong, and Thua Thien Hue. Some other outlets are under construction or will take shape in many other localities across Vietnam.

Most recently, authorities in the Mekong Delta city of Can Tho have given in-principle approval to an Aeon Mall shopping center investment plan with a total investment of over VND5.4 trillion ($212.4 million).

The Aeon Mall in Can Tho will be Aeon’s second establishment in the Mekong Delta. In May, the Japanese retail giant kicked off construction of a VND1 trillion ($39.33 million) outlet in Long An province.

Expansion plans in Thanh Hoa province and Danang city in the central region are also being accelerated.

Vietnam currently accounts for nearly 40% of Aeon Mall’s international profits. After more than 10 years of operations, the firm has invested approximately $1.5 billion in Vietnam.

From March to August 2024 (first half of fiscal year 2024), Aeon Mall Vietnam achieved a revenue of nearly 8.2 billion JPY ($53 million), marking a year-on-year growth of more than 14%. The company's pre-tax profit during this period reached about 2.4 billion JPY ($15.5 million), up 21%.