Vietnam would become a centerpiece in the development strategy of Japan’s major retail group Aeon, according to Yasuo Nishitohge, CEO of Aeon Vietnam and Southeast Asia.

The opening ceremony.

Aeon sees huge potential in Vietnam and expects to expand investment activities in the country, said Nishitohge at the launching ceremony of Aeon Mall Ha Dong in Hanoi on December 5.

Aeon Mall Ha Dong is the Japanese retailer's second shopping mall in Hanoi and the fifth in Vietnam, covering an area of 22,700 meter squares. The mall consists of 221 stores varying in catering services, fashion, entertainment and household appliances, among others.

Vietnam’s retail market is going through rapid transformation, for which Nishitohge said the group is studying the behavior of Vietnamese customers and their demands, Cafef reported.

Chairman of the Hanoi People's Committee Nguyen Duc Chung.

At the launching ceremony, Chairman of the Hanoi People’s Committee Nguyen Duc Chung expected Aeon to continue achieving successes in Vietnam, in turn promoting the Vietnam – Japan friendship.

Referring to the target of having 20 mega supermarkets in Vietnam by 2025, Aeon Vietnam’s CEO Nishitohge said Aeon is focusing on metropolises such as Hanoi and Ho Chi Minh City, before expanding to other cities. Nishitohge added this would be a huge challenge for Aeon, but the group is determined and ambitious to realize this target.

Yasuo Nishitohge, CEO of Aeon Vietnam and Southeast Asia, at the press conference.

According to Nishitohge, Aeon expects to set up its next malls in Can Tho, Da Nang, Vung Tau, and Dong Nai.

Total revenue of Aeon to date in Vietnam is US$322 million, according to a report by McKinsey & Company in September 2019.

In June 2017 and October 2018, the Hanoi People’s Committee and Aeon signed memorandum of understandings (MoUs), aiming to facilitating the group’s investment activities in Hanoi and promoting Vietnamese exports in general and Hanoi’s in particular into its global distribution network.

Aeon targets to raise Vietnamese exports via the group’s distribution network to US$500 million in 2020 and US$1 billion by 2025.

From the rate of Vietnamese goods below 40% in Aeon super markets in 2014, it now increases to over 80%, while over 2,600 local enterprises become main suppliers to Aeon with thousands of products.