Japan's Takashimaya to boost investment in Vietnam
Takashimaya, a Japanese operator of upscale department stores, plans to open a shopping centre in Hanoi in 2026 that will be the company's first new location abroad in eight years, Japanese newspaper Nikkei reported.
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| A shopping centre of Takashimaya (Source: Retail in Asia) |
Takashimaya President Yoshio Murata told Nikkei in a recent interview that the company’s subsidiary Toshin Development has started work on a mixed-use complex in Hanoi. Along with a department store, the site will include space for housing, offices and commercial tenants.
Takashimaya is expected to invest an estimated 2 billion JYP (12.9 million USD) in opening the department store.
The Hanoi complex will be the company's first overseas location since its Bangkok store opened in 2018, and its fifth department store in Southeast Asia and China combined.
With growth getting harder to come by in Japan, Takashimaya is looking to Southeast Asia in particular to expand its profit base, Nikkei noted.
Vietnam is being positioned as Takashimaya's biggest growth market due to the country's expanding middle and upper classes. However, in Vietnam, it faces heavy competition not only with local players but also with Lotte Group from the Republic of Korea and Aeon Mall from Japan.
Murata said Takashimaya will create stores that will compete with other stores, and that demand for Japanese product quality will rise as the standard of living improves.
The new complex will feature a department store with about 10,000 sq.m of sales space, along with specialty stores. Takashimaya is considering bringing in Japanese tenants to sell such items as food, cosmetics and children's clothing.
In Vietnam, Takashimaya opened its first retail centre in Ho Chi Minh City in 2016, which posted a 2% increase in revenues in the fiscal year ending February to 3 billion JPY.
(Source: VNA)
