Cinema prospects open up with operator expansions

In late March, AEON Entertainment, a movie theatre operator from Japan, revealed its expansion into Vietnam, following the establishment of a joint venture with Beta Media last year.

The first AEON Beta Cinema complexes are scheduled to launch later this year, with key locations in Hanoi, Ho Chi Minh City, and Haiphong. These initial sites are being carefully selected to integrate with AEON’s existing retail centres as well as taking advantage of leading retail partners such as Vingroup and others, ensuring optimal foot traffic and enhancing the overall customer experience.

The venture aims to open at least 50 high-end cinema complexes across Vietnam by 2035, with a total investment of $134–200 million. Beyond its malls, Beta Cinemas is also working closely with a wide network of Vietnamese real estate developers to identify and secure additional high-potential locations, accelerating nationwide expansion.

Founded in 2014, Beta Cinemas now operates 21 theatres nationwide. The partnership leverages AEON’s international expertise and Beta’s strong local foundation to build a solid path for strategic growth.

Bui Quang Minh, chairman of Beta Group, said that this new cinema model was designed with a modern, premium standard while maintaining an optimised investment structure to ensure high operational efficiency and a fast return on investment.

“Beta Cinemas will introduce a fresh, diversified, and more customer-centric approach to cinema-going in Vietnam,” Minh said. “Beyond screening blockbuster films, our cinemas will serve as multi-functional entertainment hubs – hosting live-streamed sports events, concerts, stage plays, musicals, and stand-up comedy. This will allow us to reach a wider audience and offer greater value for customers’ time and money.”

With cinemas located in or near AEON’s integrated retail destinations, visitors can enjoy a seamless mix of shopping, dining, and entertainment. Meanwhile, Beta Cinema’s lobby and common areas will be thoughtfully designed to create engaging, shareable, and community-driven spaces, appealing to younger generations and families alike.

Ralf Matthaes, managing director of IFM Research, said that cinema owners need to understand three key facets before entering the market to ensure success and sustainability.

“Firstly, they need to understand the size of the population in each location and consumers’ willingness to travel in terms of time and distance to these cinemas. Secondly, they need to understand what percentage of the population can actually afford cinema pricing to understand market potential and what the average spend per trip would be,” Matthaes said.

“Thirdly, they need to identify the percentage who will go, what the frequency of visiting a cinema is, and what their expectations are in terms of movie menu, facilities, and overall experience. Without these critical points, entering these markets could be fraught with peril,” he added.

According to Statista, revenue in Vietnam’s cinema market is projected to reach $92.07 million in 2025. This revenue is expected to demonstrate an annual growth rate of 4.72 per cent, leading to a projected market volume of $110.71 million by 2029. User penetration in Vietnam will be 5.7 per cent in 2025 and is expected to increase to 6.2 per cent by 2029.

In 2024, CGV Vietnam, the biggest cinema chain in the country, record the highest revenue and operating profit levels since its inception in Vietnam, surpassing pre-pandemic levels. CGV Vietnam takes the lead in Vietnam’s cinema market with 45 per cent of market share alongside 83 cinemas with 478 screens nationally.

This year, CGV plans to expand its locations and bolster investment and distribution for locally made content, widening the gap with other players in the Vietnamese market. To increase profits and market share, the chain is set to refurbish cinemas, ramp up its marketing activities, and diversify food and beverage menus.

Lotte Cinema is the runner-up, accounting for a market share of 26 per cent. After 15 years in the market, the South Korean company owns 45 cinemas nationwide. Galaxy Cinema ranks third with a 10 per cent market share.

Matthaes from IFM Research noted that the key barrier for cinemas is the cost of real estate. As most cinemas are located in high-end shopping malls, rents tend to be very high.

“As cinema visitation is still in its infancy in Vietnam, while online streaming services are growing substantially, a daily challenge will be placing butts in cinema seats, meaning high cost, with a limited revenue stream,” Matthaes said. In light of these factors, cinemas need to develop different revenue stream models, such as group offers and annual passes, and gain access to the most sought-after productions to generate a unique proposition. Off-hour discounts could also help, he added.

Japan's AEON Entertainment plans to open 50 new cinemas in Vietnam AEON Entertainment has formed a joint venture with Beta Media to open 50 cinemas in Vietnam by 2035, with total investment estimated to reach about VND5 trillion ($198.2 million).

CGV Vietnam records $141.4 million revenue in 2024 CGV Vietnam, the biggest cinema chain in Vietnam, posted revenue of ₩202.7 billion ($141.4 million) in 2024, up 12 per cent from the previous year.