Room aplenty for growth in Vietnam cinema market: Beta exec

With just 11-12 cinemas per 1 million people, Vietnam has a lot of room for growth that Beta Group seeks to occupy with partners, says Bui Quang Minh, the company's chairman.

Beta Media, a subsidiary of the group, recently set up a joint venture with Japan’s Aeon Entertainment to invest up to VND5,000 billion ($199 million) in establishing 50 cinema complexes named Aeon Beta Cinemas by 2035.

How do you assess that the Vietnamese cinema market has significant growth potential?

Well, the number of cinemas per capita in Vietnam is considerably lower than the regional and global figures. For instance, we have 11-12 cinemas for every 1 million people, which is just one-quarter to one-third of the number found in countries like Thailand, South Korea, Japan, and the U.S. So there is room to expand across various segments, including both the mass market segment that Beta Cinemas targets and the high-end segment that Aeon Beta Cinemas will focus on.

What defines the "high-end” cinema segment, and what will its ticket prices be?

It's too early to share specifics, right now. Our aim is to introduce cinema complexes that set a new standard of quality, drawing inspiration from the Japanese market. We are partnering with Aeon Cinema, Japan’s leading cinema chain, renowned for its premium service and modern facilities. By leveraging Beta Media’s local expertise and cost management capabilities, we plan to build an optimal Aeon Beta Cinemas chain within a specific budget.

What locations will Aeon Beta Cinemas prioritize?

Our initial focus will be on major cities such as Hanoi, Ho Chi Minh City, Danang city, Hai Phong city, and Can Tho city. However, we are also exploring opportunities to develop cinema clusters in other provinces based on available premises and partnerships. Our goal is to deliver exceptional cinematic experiences across Vietnam. While we cannot disclose specific details at this stage, we plan to open our first cinema in 2025 and aim to launch 50 high-end cinemas across the country within the next decade.

What about competition from existing cinema chains like Lotte and CGV?

In a growing market like Vietnam, the entry of more players is beneficial for market exploration and expansion. It encourages development of a movie-going culture among Vietnamese people, which is advantageous for the industry as a whole. Rather than competing, we see the opportunity for coexistence and mutual growth.

Apart from the relatively low number of films per capita in Vietnam, other growth factors include rising incomes and increasing entertainment needs. Audiences will benefit as a growing cinema network provides enhanced viewing experiences including more high-quality films.

Can you share some details about Beta Media’s current operations?

Beta Media operates a successful chain of 20 cinemas. Our occupancy rates and financial returns are among the best in the market. Post-pandemic, we have experienced rapid growth, with 2023 revenue increasing by 150% compared to pre-pandemic levels.

In the first half of 2024, our performance has been strong and we are expanding with new openings, including Beta Ung Van Khiem cinema in Binh Thanh district (HCMC), and plan to open two additional theaters in Hanoi by the year-end.

We are optimistic about our growth potential and the evolving market landscape.

How will Beta Media’s current system support Aeon Beta Cinemas?

As shareholders in the joint venture, we will contribute our expertise and insights to the project. Aeon Beta Cinemas will focus on high-end customers, while Beta Cinemas will cater to the mid-range market. This division allows both systems to coexist and serve different customer needs effectively. Beta Media’s experience and understanding of the local market will support the development and success of Aeon Beta Cinemas.

The economy is still recovering from the pandemic and supply chain disruptions. Are Aeon Entertainment and Beta Media not concerned that audiences might not be ready to spend money on entertainment?

We believe this isn't the case. The film and cinema market has continued to thrive post-pandemic with films achieving record revenues and cinemas enjoying high occupancy rates. While other forms of entertainment might be affected, the cinema market still presents many opportunities for growth. Audiences remain enthusiastic about movies shown in theaters, as evidenced by our sales and recent market data.

How did the tie-up between Beta Media and Aeon Entertainment happen?

When major Japanese companies consider investing in the Vietnamese market, they conduct thorough analyses and evaluations. They engage with numerous partners and explore various options. From the initial meetings and exchanges to discussions about potential cooperation and suitability, they carefully assess their choices. After extensive analysis, Aeon Entertainment selected Beta Media as their partner.

Similarly, my team and I at Beta Media spent considerable time researching Aeon Entertainment's cinema operations in Japan, including their project implementation methods, to ensure a good fit. We visited Japan and received a very warm and sincere welcome from Aeon Entertainment. We believe they are an ideal partner for joint venture cooperation.