AEON Vietnam has been issued a $41 million loan from the Japan Bank for International Cooperation (JBIC) and Mizuho Bank to facilitate a greater footprint in the southern region.
The JBIC will provide credit worth $24 million, while Mizuho Bank will lend $17 million.
AEON Vietnam will use the fresh funds to open two new general merchandise stores in the southern provinces of Binh Duong and Long An. The move will also support the development of a distribution network for Japanese ingredients and processed food in Vietnam through AEON's stores.
AEON has identified Vietnam as its second key investment market behind Japan, recording a 20 per cent increase in revenue last year when compared to pre-COVID levels.
The Japanese retailer currently runs six large stores in the country, with plans to open a further 30 by 2030. It is expected to inject tens of billions of yen into the opening of new stores in Vietnam.
Another report by the Ministry of Industry and Trade found that Vietnam's retail industry currently has a market size of $142 billion, and is expected to grow to $350 billion by 2025 – contributing 59 per cent to GDP. These figures prove the attractiveness of the Vietnamese market for retail giants like AEON.
Through eight subsidiaries in Vietnam, AEON invests and operates in many fields, such as general retail, shopping mall development, services, finance, import and export, and private brand product development.
Besides large shopping malls, AEON Vietnam owns and operates one medium-sized supermarket, 21 supermarkets (including the AEON Citimart and AEON MaxValu brands), 24 specialised stores, nearly 140 convenience stores, two distribution centres, and an e-commerce site.
To increase the convenience for its customers, the Japanese retailer is also accelerating its digital transformation by developing an omnichannel sales system, promoting e-commerce and non-cash payments, and building an integrated point accumulation system in the ecosystem of its eight member companies in Vietnam.
| ||Bringing the standards and quality of Japanese retail brands to Vietnam |
Vietnam remains an enticing business and investment environment for Japanese investors, especially in the retail sector. Furusawa Yasuyuki, general director of AEON Vietnam, explained to VIR’s Oanh Do how the company is making further efforts to develop its brand while also bringing the best value to customers.
| ||Retail action hots up with store openings |
Vietnam’s retail market is becoming a fertile ground for not only domestic retailers but also foreign brands seeking to do business up and down the country.
| ||Robust decision-making for rapid retail development |
Japanese retail giant AEON is excited to promote further investment in this country. Furusawa Yasuyuki, executive officer board member of AEON Co., Ltd. in charge of Vietnam Business, as well as general director of AEON Vietnam, explained to VIR’s Hoang Oanh why Vietnam is the most important foreign market for the group.