Japanese retailers step up business activities in Vietnam

Japanese retailers Aeon and Sumitomo have planned to expand their networks in Vietnam, Nikkei Asia reported on Monday.

Aeon – Japan's largest retail group – plans to increase the number of hypermarkets, also known as "Super Supermarket (SSM)" and general merchandise stores (GMS) in Vietnam from 12 as of February 2025 to about 100 stores by 2030.

Another large Japanese group, Sumitomo, also aims to open supermarkets in Vietnam, with about 10 stores per year.

With a population of more than 100 million, with young people making up a high proportion, Vietnam is a consumer market that is expected to grow strongly in Southeast Asia and many foreign companies are developing business platforms in Vietnam.

In January 2025, Aeon opened a GMS in Xuan Thuy street, Hanoi. Located in a developing area with many offices, schools, and a subway station, Aeon Xuan Thuy provides food as well as cosmetics, furniture, clothing, and many other items.

The snack area operated by Aeon alone has an area of 1,620 sqm, far exceeding the average sales floor area of Japanese supermarkets (about 1,366 sqm, according to data from the Japan Supermarket Association). The third floor alone has 450 seats for customers to enjoy prepared food.

In addition, Aeon is looking to expand the SSM model – a combination of a food supermarket and a GMS, with a food court and a cosmetics counter.

The special thing is that the dishes are very diverse, including sushi, ramen, fried food, bento, and bread, and most of the dishes are prepared right at the store.

By the end of February 2025, Aeon is operating 12 GMS (including three separate SSM) and 36 food supermarkets in Vietnam.

Furusawa Yasuyuki, general director of Aeon Vietnam, said that to stand on par with Central Retail – a large retail group in Thailand, Aeon aims for 100 GMS and SSM locations by around 2030. Regarding small stores such as food supermarkets, it is also considering expanding to about 200 stores.

Meanwhile, Sumitomo plans to expand its Fuji Mart food supermarket chain – developed through a partnership with Vietnam's BRG Group – from the current 20 to 50 stores by 2028.

The corporation will leverage the know-how of Summit – a food supermarket chain that Sumitomo operates mainly in Tokyo – to operate the stores, with the aim of minimising out-of-stock situation and strictly controlling product freshness.

Fuji Mart president Obama Yuji emphasized that although Fuji Mart is a Japanese chain, it is targeting Vietnamese people. Competing with traditional markets with fresh food, Fuji Mart is differentiating itself from local supermarkets with processed foods and bakery items.

According to Aeon, processed foods and bakery items account for 13% of total food sales at Japanese stores, but in Vietnam, this figure is up to 20%.

At Xuan Thuy supermarket, the proportion of processed foods sold reached nearly 30%, showing that Vietnamese consumers have high expectations for processed foods at Japanese supermarkets.