Aeon, Japan’s largest retailer, is leading this expansion strategy with plans to increase the number of its large supermarkets and department stores in Vietnam by eightfold by 2030. This move showcases the company’s strong belief in the Vietnamese market’s growth potential.
In January 2025, Aeon opened Aeon Xuan Thuy in Hanoi, a department store located in a vibrant area with offices, schools, and a new metro station. The first three floors of this four-story building offer not only groceries but also cosmetics, furniture, and clothing. Notably, the store is packed with local shoppers even on weekdays.
 Inside Aeon Xuan Thuy
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A unique aspect of Aeon’s business model in Vietnam is the dedicated space for prepared foods, spanning 1,620 square meters, which far exceeds the average area for similar spaces in Japanese supermarkets. The third floor is designed as a massive food court with 450 seats.
In addition to its traditional department store model, Aeon is also aggressively developing the “super-supermarket” model, which combines a regular supermarket with department store elements such as dining and beauty zones. As of the end of February, Aeon had established a network of 12 department stores (including 3 super-supermarkets) and 36 supermarkets, including Citimart stores.
“To compete with companies like [Thai retailer] Central, we aim for a target of 100 department stores and super-supermarkets by around 2030,” said Yasuyuki Furusawa, former head of Aeon’s Vietnam branch and current chairman of Aeon Retail. He also revealed that for smaller-scale stores such as grocery stores, Aeon aims to expand to about 200 locations.
It’s not just Aeon; other Japanese companies are also vigorously expanding in the Vietnamese market.
Sumitomo, one of Japan’s largest trading houses, is rapidly developing the FujiMart chain with plans to double the number of stores to 50 locations by 2028. FujiMart stores are operated in partnership with local partner BRG Group.
Although FujiMart has a Japanese-style supermarket feel, the store’s management affirms that they are targeting Vietnamese consumers, attracting customers from traditional markets with fresh produce and differentiating themselves with prepared foods and unique bakeries.
Inside FujiMart store
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Yaoko, a local supermarket headquartered in Saitama Prefecture, has also invested nearly 100 million yen (equivalent to 700,000 USD) in the company operating Vietnam’s 3Sach chain. Despite not having any stores outside of Japan, Yaoko views Vietnam as a target market for its future international expansion plans.
Turning to Thailand, the Central Group, one of the largest retail empires in the country, is accelerating its expansion strategy in Vietnam, especially in rural areas.
Go! Supermarket by Central Retail
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The statistics explain why Japanese and Thai retailers are flocking to Vietnam. Retail sales in Vietnam surged by 8% last year, reaching VND 4,920 trillion (equivalent to USD 190 billion), according to official government data. Small grocery stores and traditional markets still dominate with about 70% to 80% of sales, presenting a golden opportunity for large supermarket chains and convenience stores to expand their market share.
However, the race in Vietnam’s retail market is not without challenges. Domestic competitors like the Masan Group have built an empire of approximately 3,800 supermarkets and convenience stores as of December, and they aim to open an additional 1,000 locations annually, mainly WinMart+ convenience stores.
One of Aeon’s success factors in Vietnam is its understanding of local consumer habits and preferences. According to Aeon’s internal data, while prepared foods and baked goods account for only 13% of total food sales in Japan, this figure jumps to 20% in Vietnam. Notably, nearly 30% of sales at the Aeon Xuan Thuy store came from prepared foods (from its opening in January to early March).
“Going to the store with family, each person choosing what they want, and then sitting around a table to eat is a form of entertainment in Vietnam,” said Mr. Furusawa of Aeon Retail.
Vu Hao (According to Nikkei Asia)
Police Launch Major Crackdown on Fake Milk and Medicine: 33 Charged in Three Serious Cases
“In response to the shocking milk and medicine counterfeit scandals, Vietnam’s Ministry of Public Security has taken decisive action. They have prosecuted 33 suspects, addressing not only the counterfeiting but also tax evasion totaling over 121 billion VND through the maintenance of two separate accounting systems.”
Vietnam Open to Negotiations with the US for Balanced and Sustainable Trade
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“During his meeting with the US Congress’s USCC delegation on the morning of May 7th, the Prime Minister affirmed that Vietnam is ready to negotiate with the US for the benefit of the people and businesses of both nations, striving for balanced and sustainable trade.”
“Proposal to Merge Provincial-Level Administrative Units: A Comprehensive Reform for Efficient Governance”
The National Assembly will discuss a range of critical issues at its 9th session, including resolutions on mechanisms and policies to foster private economic development. Additionally, a pilot scheme will be proposed, offering special mechanisms and policies to invest in developing the railway system. A proposal for the merger of provincial-level administrative units is also on the agenda, alongside other significant matters.
“Australia and Vietnam: Marching Towards a $20 Billion Trade Target”
“The Prime Minister affirmed Vietnam’s readiness to engage with Australia in negotiating a bilateral trade and investment agreement. This move is aimed at boosting bilateral trade, with the ambitious target of reaching $20 billion set in sights by both nations.”
Fast-Tracking Railway Projects: A Priority for the Prime Minister
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Prime Minister Pham Minh Chinh reaffirmed the unwavering goal of commencing the construction of the Lao Cai – Hanoi – Hai Phong railway project in 2025 and breaking ground on the high-speed North-South railway line in 2026. He instructed relevant agencies to expedite the finalization of a resolution consolidating special mechanisms for all railway projects. This resolution is to be presented to the government in April for submission to the National Assembly before May 5th.
