Japanese retail giant Takashimaya to open first mall in Hanoi

By Anh Tu   April 21, 2024 | 11:38 pm PT
Japanese retail giant Takashimaya to open first mall in Hanoi
The Takashimaya shopping center in District 1, Ho Chi Minh City. Photo courtesy of Takashimaya Vietnam
Japanese retailer Takashimaya plans to invest 2 billion yen (US$13 million) in building a 10,000-square-meter shopping mall in Hanoi, its first in the city.

It would open in 2026, Takashimaya’s president, Yoshio Murata, told Nikkei newspaper in a recent interview.

The company is considering hiring Japanese staff to sell certain items such as cosmetics, food and children's clothing at the mall, he said.

It also plans to expand its existing mall in Vietnam, which it opened in HCMC’s District 1 in 2016.

It has five shopping centers in Southeast Asia and China. The Hanoi mall will be its first overseas one since the opening of its Bangkok store in 2018.

Facing fierce competition and a declining economy in its home country, Takashimaya is looking to Southeast Asia for better opportunities.

It considers Vietnam the most lucrative market in the region due to the rapid expansion of its middle class.

But in the country, it has to compete with other large foreign retailers like South Korea’s Lotte and Japan’s Aeon Mall.

Murata said: "We will establish the foundations to compete with them. The demand for high-quality products from Japan will increase as Vietnamese consumers aim for higher living standards."

In addition to retail real estate, Takashimaya also partnered with a local company to build and operate a school.

In future it plans to invest in other real estate projects in Vietnam, Murata said.

It has a target of doubling its profits in Vietnam by 2027.

"It is tough to engage in only commercial [development] in overseas markets," Murata told Nikkei. "We will move forward with a combination of businesses and lift our earnings."

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