Japanese retailer AEON to expand operations in Vietnam

The news outlet noted that with almost 40 years of experience in Southeast Asia, the retailer will seek to use the knowledge it acquired in Malaysia, where it first entered the region, and other markets to intensify its store opening campaign.

The giant retail group is greatly attracted to the growing Vietnamese middle class as consumers, especially amid the lifting of restrictions placed on foreign operators.

"We have expertise in mass production and efficient delivery that we cultivated in Japan and Malaysia, these are areas where we can never be outdone by other companies," said Yasuyuki Furusawa, head of AEON Vietnam.

AEON has so far opened some 200 stores in Vietnam, including six shopping malls and several supermarkets. The stores are primarily located in Ho Chi Minh City, the country's largest city, and Hanoi, the capital, although a mall is set to open in the central city of Hue in 2024.

The Japanese firm has devised plans to increase its number of stores in Hanoi to 100 by 2025, approximately 10 times the current number. In addition, the number of malls will also be nearly tripled to 16 throughout the country.

"We need to accelerate our store openings, which is why we must take new initiatives now," Furusawa said, adding strengthening its food businesses, such as bakeries and kitchens, will be part of this effort.

A shift towards the Southeast Asian market is one of the key parts of the company's medium-term business plan. The Vietnamese market is considered the most important market in AEON’s overseas strategy which boasts approximately 100 million consumers and is expected to record expected economic growth of over 7% this year.

Vietnam is an attractive location as it is a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. It also plans to abolish its foreign investment restrictions as early as 2024.