Japanese retailer Aeon Mall earned an operating income of JPY1,093 million ($7.78 million) in Vietnam for the first quarter of fiscal year 2023 (March-May 2023), up 42.9% year-on-year.
The retailer recorded operating revenues of JPY3,528 million ($25.1 million) in the three-month period, up 31.6% year-on-year, according to its latest report. The figure was the company’s highest among ASEAN nations and the second-highest overseas market, only behind China.
Aeon Mall attributed the first quarter growth to promotional activities for the International Women's Day and Earth Hour as well as high purchasing demand around the Tet (Lunar New Year) holiday.
While it was impacted by an economic slowdown in April and May, growth remained high at 49.8% and 55.8% of same months of pre-pandemic year 2019.
Per its medium-term (2023-2025) plan, the company will open more outlets in Vietnam, including one in the central province of Thua Thien-Hue. Construction of Aeon Mall Hue began in February and a grand opening is planned in the second half of 2024.
The firm is also pursuing area-dominant mall openings focused on Ho Chi Minh City in the south, Hanoi in the north, and a few cities in the central region.
In May, the central province of Thanh Hoa said construction of a $190-million Aeon Mall will begin this September.
In March, Aeon Vietnam Co. Ltd. and its Vietnamese partner obtained in-principle approval for their mall project in the northern province of Hai Duong.
In February, Hanoi approved a draft plan for the city's third Aeon Mall, which will cover 8.03 hectares in Dai Kim and Thinh Liet wards, Hoang Mai district.
There are six Aeon Mall outlets in Vietnam: two each in Hanoi and Ho Chi Minh City; and one each in the southern province of Binh Duong and northern city of Hai Phong.
The retailer has so far invested more than $1.18 billion into Vietnam, Aeon Group executive chairman Akio Yoshida said at a meeting with Vietnamese Prime Minister Pham Minh Chinh in Japan’s Hiroshima in May.
Globally, Aeon Mall recorded an operating income of JPY13,883 million ($98.77 million) in the first fiscal quarter, with Japan, its home market, accounting for the biggest portion at JPY10,294 million ($73.23 million), followed by China with JPY2,501 million ($17.79 million) and Vietnam with JPY1,093 million ($7.78 million).