Japanese retail giants expand footprint in Vietnamese market

Japanese retail giants expand footprint in Vietnamese market

Major Japanese retail corporations such as Aeon and Sumitomo are stepping up their business expansion in Việt Nam, aiming to tap into the country's growing consumer market driven by a young population and rising middle class.

Shoppers browse goods at the Aeon Mall general merchandise store in southern Bình Dương Province. — Photo baophapluat.vn

Aeon, Japan’s largest retail group, plans to increase the number of its General Merchandise Stores (GMS) and Super Supermarkets (SSM) in Việt Nam from 12 as of February 2025 to approximately 100 by 2030. The company is also considering expanding its smaller food supermarkets to about 200 locations nationwide.

In January 2025, Aeon inaugurated a new department store, Aeon Xuân Thuỷ, in the capital city of Hà Nội. Located in a fast-developing area near office buildings, schools, and a newly opened metro station, the store spans the first three floors of a four-storey building. It offers a wide range of products including groceries, cosmetics, household goods, clothing, and ready-to-eat meals.

One notable feature is its 1,620sq.m food section – significantly larger than the average floor area of supermarkets in Japan (1,366sq.m, according to the Japan Supermarket Association). The third floor also provides 450 seats for customers to enjoy prepared meals on-site.

Aeon is also accelerating the rollout of its SSM model, which integrates food retailing with food courts and cosmetics counters. Popular offerings include freshly made sushi, ramen, deep-fried items, bento boxes, and bread – all prepared directly in-store.

As of late February 2025, Aeon operates nine GMS outlets, three SSM stores, and 36 food supermarkets in Việt Nam, including those under the City Mart brand.

“To compete with rivals such as Thailand’s Central Group, we aim to reach 100 GMS and SSM stores by around 2030,” said Furusawa Yasuyuki, general director of Aeon Việt Nam.

Meanwhile, Sumitomo Corporation is also expanding its presence through the Fuji Mart supermarket chain, developed in partnership with Việt Nam’s BRG Group. The company plans to increase its store count from 20 to 50 by 2028.

Sumitomo will leverage the expertise of Summit, a supermarket chain it operates in Tokyo, to manage Fuji Mart stores with a focus on minimising stock shortages and ensuring product freshness.

“Though we are a Japanese supermarket, we are targeting Vietnamese consumers,” said Obama Yuji, president of Fuji Mart.

“We differentiate ourselves from local competitors with our ready-to-eat meals and bakery products, while also competing with traditional markets through our fresh food offerings.”

Fuji Mart began its expansion in 2012, having had only a few stores in Việt Nam by the end of 2011.

According to Aeon, ready-to-eat meals and baked goods account for about 13 per cent of total food sales in Japanese stores.

In Việt Nam, however, this figure rises to 20 per cent, and at Aeon Xuân Thuỷ, nearly 30 per cent of food sales during its initial months came from ready-made items, reflecting high demand among Vietnamese consumers.

Commenting on this trend, Aeon Việt Nam’s General Director Furusawa said that in Việt Nam, supermarket visits often serve as a family outing, where members pick different meals and dine together.

“This means shopping is no longer just about daily necessities, but also about creating added value through food and leisure experiences,” he noted. 

Bizhub