Nikkei Asia recently analysed foreign investment policies of Japanese retail groups, including retail giant AEON, noting that numerous groups plan to expand operations in the Vietnamese market.
The COVID-19 pandemic, combined with lower barriers to foreign investment, created what AEON sees as its chance to reach more Vietnamese consumers.
The group plans to open 100 or so of its MaxValu supermarkets in Vietnam by 2025, up from just four in the Hanoi area now.
‘The retail group faces few large foreign-owned competitors in the capital, where wet markets would draw crowds with fresh meat, fish and produce’, Nikkei Asia commented.
Vietnam is the most important market for the retail giant’s overseas strategy, the newspaper quoted Okazaki Soichi, the executive in charge of the group’s Southeast Asian business, as saying.
Vietnam an important market of Japanese retail groups hinh anh 2
AEON mall in Vietnam (Photo: vietnambiz.vn)
These vendors are now seeing shoppers stay away after a rash of COVID-19 outbreaks in big Vietnamese cities this year.
AEON will add bigger stores with 500 sq.m or more of floor space in its expansion.
In its pursuit of scale, AEON will chase Vietnamese supermarket leader Masan Group and Thailand’s Central Group, which operates 230 stores.
AEON is not the only Japanese group with an eye on Southeast Asian consumers, the article continued.
Trading house Sumitomo Corp. plans to open more locations of Japanese-style supermarket chain FujiMart in Vietnam with local conglomerate BRG Group. FujiMart has three locations in Hanoi.
In addition, the operator of the Don Don Donki store chain, Pan Pacific International Holdings, aims to increase its overseas sales to 1 trillion JPY (8.72 billion USD) by the year ending June 2030, about six times last fiscal year’s level.
For its part, convenience store operator FamilyMart has expanded into five Southeast Asian countries, tailoring its product lineup to local needs and tastes.
Source: Vietnam News Agency
