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According to a source of the Ministry of Planning and Investment’s Investment Promotion Centre-North Vietnam, the retailer had obtained an investment certificate for building a $200 million store in Hanoi. AeonMall Vietnam, established last year, will manage and run the project, Aeon’s first in northern Vietnam.
Aeon’s first store was introduced two years ago in Ho Chi Minh City, Aeon Shopping Center-Tan Phu Celadon, located in Celadon City urban project in Tan Phu district, capitalised at $100 million. The Japanese investor plans to complete the construction of the this centre in the first half of 2014, which will be Aeon’s first shopping centre and general merchandise store in Vietnam.
Aeon’s second store is located in southern Binh Duong province, 20 kilometres from Ho Chi Minh City. This project, Aeon Shopping Centre-Binh Duong Canary, is worth $95 million. This project is expected to be launched in 2014.
Nishitohge Yasuo, general director of Aeon Vietnam, previously announced that the retailer targeted to develop 10 centres in Vietnam, adding that the shopping centre in Hanoi could be inaugurated in 2015. Moreover, a chain of specialist shops and 24-hour shops are also planned.
Vietnam’s retail sector was moved out of top 30 countries of retail attractiveness by A.T Kearney as inflation, high real estate price and interest rate had been negatively impacted on consumers and retailers. However, The Nielsen Company, a market research firm, in a survey Grocery Report Vietnam 2012 released last month said the country’s retail sector “is still attractive to foreign investors despite total foreign direct investment decreases.”
“Vietnam has a big room to grow in terms of modern trade store density,” The Nielsen Company said in the report. Like Aeon, other Japanese retailers are also expanding investments in Vietnam including Family Mart and Takashimaya. “Traditional trade is still the dominant channel in Vietnam while modern trade speeds up opening store especially in Hanoi,” said The Nielsen Company.