In an interview with Nikkei Asia, Yoshio Murata, Takashimaya President, revealed that Takashimaya’s real estate subsidiary, Toshin Development, has begun discussing plans to build the complex in Hanoi. Apart from a shopping mall, the building will also house residences, offices and commercial rental space.
Takashimaya, a leading department store group in Japan, plans to invest about 2 billion yen (nearly $13 million) in the project.
The Hanoi complex will be Takashimaya’s first overseas location since it opened in Bangkok, Thailand in 2018 and its fifth shopping mall in Southeast Asia and China.
As Japan’s domestic market struggles, Takashimaya has been looking to Southeast Asia for growth opportunities, with Vietnam seen as a key market due to its rapidly growing middle class. However, it will face stiff competition from rivals such as South Korea’s Lotte and Japan’s Aeon Mall.
“We will build the foundation to compete with them. Demand for high-quality Japanese products will increase as Vietnamese people’s living standards improve,” said Murata.
The Hanoi complex will comprise a shopping mall with a sales floor of around 10,000 sq. meters, as well as specialty stores. Takashimaya is also considering dispatching Japanese staff to sell products such as food, cosmetics and children’s clothing.
It will be Takashimaya’s second shopping mall in Vietnam, after it opened an outlet in Ho Chi Minh City in 2016 that houses about 150 specialty stores plus a supermarket.
In the fiscal year ended February, Takashimaya’s Vietnam mall business grew 2% to 3 billion yen, helped by strong sales of children’s products. Takashimaya also plans to expand its Ho Chi Minh City facility in the future.
Besides its retail property business, the company has also tied up with a Vietnamese partner to build and operate a school. Takashimaya is also hoping for opportunities to invest in other real estate projects in the country.
Takashimaya, which aims to double its Vietnamese operating profit and dividend income to 4.4 billion yen in fiscal 2027, is committed to developing a wider range of businesses to drive earnings growth.
Overseas development is seen as one of the next growth drivers for Takashimaya. Last week, the group announced that it will invest 51 billion yen ($331 million) in the sector through February 2027, including the spending in Vietnam.
