Japanese retail giant AEON has announced that it will build its third mall in Hanoi and will spend $280 million USD on the project, which will be opened in 2020. Yasutsugu Iwamura, General Director of AEON Malls in Vietnam made the announcement in a meeting with Vietnamese Prime Minister Nguyen Xuan Phuc and said that the company plans to build 20 malls in Vietnam by 2025.
Currently AEON has four malls operating in the country in the cities of Hanoi, Ho Chi Minh City and Binh Duong and two other malls are currently under construction, including a new mall in Hai Phong.
|An AEON mall in Ho Chi Minh City|
Yasutsugu said the retailer hopes to have a strategic partnership with Vietnam and plans to increase exports of Vietnamese agricultural products to Japan. AEON estimates that it will double its current imports to $500 million USD in 2020 and to $1 billion USD by 2025.
According to AEON statistics, Vietnamese imports by the company increased by 7.6% in 2018 and were valued at $245 million USD. Clothing items accounted for 55% of the total with a value of $135 million USD.
|The AEON mall in the Binh Tan district of Ho Chi Minh City|
In order to increase the amounts and value of Vietnamese products that the company imports, AEON has made a commitment to provide technical support to Vietnamese suppliers to enable them to meet its “Japanese quality standards.”
Agriculture and food products are expected to make up a large percentage of future growth and Eiji Shibata, Chief Merchandising & Logistics Officer at AEON has said that food will ultimately rise to around 70% of the retailer’s total sales in Japan.