AEON Mall Hue Opens with a JPY 25.9 Billion Investment, Uniqlo Also Opens Its First Central Vietnam Store — Japanese Retailers' "Regional City Push" Gains Momentum

AEON Mall has opened a large commercial facility with a JPY 25.9 billion investment in the ancient city of Hue in central Vietnam. Uniqlo has also opened its first central Vietnam store within the facility, and Japanese retailers' "regional city push" is gaining full momentum. This move symbolizes that the Vietnam expansion of Japanese companies, which had been concentrated in the two major cities of Ho Chi Minh City and Hanoi, has entered a new phase.

Overview of AEON Mall Hue — The Largest Commercial Facility in Central Vietnam

AEON Mall Hue opened as the 7th commercial facility for the AEON Mall Group in Vietnam. Located in the An Van Duong new urban area of Hue City (the former Thua Thien Hue Province, which transitioned to a centrally governed municipality in January 2025), it is the largest shopping mall in Hue City. Total investment reached about JPY 25.9 billion, making it one of the largest investment projects in AEON Mall's Vietnam business.

What is particularly notable is that this facility is the first shopping mall in Vietnam to obtain the Vietnam Green Building Council's (VGBC) "LOTUS certification." Its environmentally conscious facility design aligns with the global trend emphasizing ESG (Environmental, Social, and Governance), showing that AEON Mall's Vietnam business is taking a sustainability-focused approach rather than merely pursuing commercial development.

Uniqlo's First Store in the Central Region — Completing Its Nationwide Vietnam Rollout

Along with the opening of AEON Mall Hue, Uniqlo opened its first store in central Vietnam. With a sales floor of about 1,000 square meters, the store carries the full LifeWear lineup, offering Hue residents their first full-fledged global fast-fashion experience.

Until now, Uniqlo had expanded its stores in Vietnam mainly around Ho Chi Minh City and Hanoi, but with this opening in Hue, it has now established a presence in all three regions: the north (Hanoi), the south (Ho Chi Minh City), and the center (Hue). Completing a retail network that covers the whole of Vietnam is an important milestone in the company's Vietnam business.

Large crowds of visitors flocked to the store on opening day, demonstrating that Hue consumers have strong interest in global brands. Although per-capita income in central Vietnam is lower than in Ho Chi Minh City or Hanoi, brand awareness among young people is rising rapidly, and its potential as an untapped market is large.

Why Has the "Regional City Push" Begun?

Behind Japanese retailers' growing focus on regional cities in Vietnam is intensifying competition in the two major cities. In Ho Chi Minh City and Hanoi, large commercial facilities such as AEON Mall, Lotte Mart, and Vincom Mega Mall have proliferated, and room for new store openings is becoming limited. In addition, soaring real estate rents are also a factor squeezing profit margins.

Meanwhile, regional hub cities such as Hue, Da Nang, and Hai Phong are seeing rapid urbanization and a growing middle-income population. Vietnamese government investment in regional infrastructure has advanced highway and airport development, improving logistics access as well. Hue, a UNESCO World Heritage ancient capital, draws large numbers of tourists and offers a location with strong drawing power for commercial facilities.

AEON Mall's Vietnam strategy: from 7 malls to double digits

AEON Mall currently operates seven malls in Vietnam: three in Ho Chi Minh City, two in Hanoi, one in Hai Phong, and now one in Hue. The company positions Vietnam as the core of its Southeast Asia business and aims to operate more than 20 malls in the country by 2030.

AEON Mall's strategy goes beyond simply operating shopping malls. By bringing together a supermarket (MaxValu), specialty stores, restaurants, and entertainment facilities within each mall, the company aims to serve as everyday infrastructure for residents in the surrounding area. In Vietnam, malls have become established as a "weekend destination," and their strength lies in strong drawing power, particularly among families.

Japanese tenants' regional expansion: AEON Mall becomes a "store-opening platform"

AEON Mall's regional expansion functions as a platform for Japanese tenant companies to enter regional markets. Opening a standalone store in a regional city, as Uniqlo has done, carries high risk, but opening inside a high-traffic facility like AEON Mall substantially reduces that initial risk.

Going forward, Japanese restaurant chains, cosmetics brands, and lifestyle goods brands are likely to follow and open stores at AEON Mall Hue. The malls AEON Mall develops in Vietnam's regional cities are likely to function as a "testing ground" for Japanese companies to try out Vietnam's regional markets.

Challenges and points to note

Of course, expanding into regional cities also comes with challenges. The first is purchasing power. Hue's per-capita GRDP (gross regional domestic product) is roughly half that of Ho Chi Minh City, which limits the potential for selling high-priced goods. Tenant companies need to adjust price points and tailor their product lineups to the needs of regional consumers.

The second challenge is securing talent. Trained staff are essential for retail store operations, but regional cities have a limited pool of workers with service-industry experience. Plans need to account for the time and cost required to train newly hired staff.

The third challenge is logistics costs. Delivering goods from distribution hubs in Ho Chi Minh City or Hanoi to regional cities is costly due to distance and infrastructure constraints. Building local procurement and delivery systems is a medium- to long-term challenge.

Outlook

The opening of AEON Mall Hue and Uniqlo's first store in central Vietnam mark a turning point in Japanese retailers' shift from concentrating on Vietnam's two largest cities to expanding nationwide. Vietnam's regional cities are expected to rapidly grow in presence as consumer markets toward 2030, and companies that enter early stand to gain first-mover advantages.

If you are interested in doing business in Vietnam's regional cities, please feel free to contact SoJapan.. Takashimaya's plan to enter Hanoi and Da Nang's push to attract high-tech industry is also covered in our other articles, so please take a look.