Vietnam firm Hoa Lam to build $212 mln Aeon Mall in Mekong Delta

The Mekong Delta city of Can Tho has accepted a subsidiary of private multi-sector Hoa Lam Group as the investor of the Aeon Mall Can Tho commerce and service center.

The facility will cover 8.5 hectares in Long Hoa commune, Binh Thuy district, the city’s administration said in an announcement on Wednesday.

Hoa Lam Can Tho Investment Development JSC will build the center at an estimated cost of VND5.4 trillion ($212.4 million), of which VND1.08 trillion will be sourced from the investor’s equity.

The first phase will feature a trade center with a total floor area of 113,921 square meters. It is due to be completed and come online within 36 months from November 2024.

The second phase will entail another trade center and a parking building with a floor area of 81,152 square meters. It is slated for deployment 10 years after the debut of the first phase.

Hoa Lam Can Tho was established in December 2022 with a charter capital of VND200 billion ($7.87 million), with 99% owned by Hoa Lam Group.

At the Vietnam-Japan economic forum in Tokyo in mid-December 2023, in the presence of Prime Minister Pham Minh Chinh, representatives of Can Tho and Bac Giang provincial governments and partners exchanged MoUs to build Aeon-branded malls in Can Tho and Bac Giang, with an investment of more than $200 million each.

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-plus ($39.33 million) outlet in Long An province.

Aeon currently has seven malls 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 Hai Duong, Ha Nam, Quang Ninh, and Thanh Hoa provinces.

Furusawa Yasuyuki, general director of Aeon Vietnam, said in September that Vietnam is the most important overseas market in Aeon Group's growth strategy.

Phi Hoa, founder and CEO of ONE-VALUE, an investment strategy consulting firm specializing in M&A matchmaking in Vietnamese and Japanese markets, told The Investor that Aeon plans to develop some 30 shopping malls in Vietnam and aims to have more innovative ideas for the upcoming shopping centers.

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%.