Takashimaya to open its first Hanoi store — targeting Vietnam's "new middle class" market in its first overseas expansion in 8 years

Japan's leading long-established department store Takashimaya is planning its first entry into Hanoi sometime in 2026. Ten years after its 2016 entry into Ho Chi Minh City, it is taking the step of its first overseas opening in 8 years, driven by the expansion of Vietnam's middle class.

Overview of the Hanoi opening

Takashimaya plans to open a new mixed-use commercial facility in Hanoi in 2026. The investment for the department store portion alone will reach about JPY 2 billion (USD 12.9 million), with retail space of about 10,000 square meters planned. It is also considering attracting Japanese tenants centered on food, cosmetics, and children's clothing. The facility is a mixed development of residential, office, and commercial space, designed to capture everything from daily life to premium consumption in one place.

Backed by the success of the Ho Chi Minh City store

Takashimaya's Ho Chi Minh City store has, since its 2016 opening, become established as a major commercial hub with about 150 specialty stores. There is a plan to grow operating profit and dividend income from the Vietnam business to about JPY 4.4 billion by the fiscal year ending February 2027, and the Hanoi opening is positioned at the core of this growth strategy. The Ho Chi Minh City store has won strong support from Vietnam's affluent and upper-middle class, who place importance on the quality and safety of Japanese products, and the aim is to replicate this successful model in Hanoi as well.

Why Hanoi

Hanoi is Vietnam's capital, with a population of about 8 million. Its per-capita GRDP is the second highest after Ho Chi Minh City, and it is home to a concentration of high-income residents such as government officials, diplomats, and staff posted by foreign-affiliated companies. In addition, Hanoi has been undergoing rapid urban redevelopment in recent years, with a continuing boom in the construction of high-end residences and office buildings. Alongside this urban transformation, demand for high-quality retail channels is rising.

Vietnam's expanding middle class is a tailwind

Vietnam's middle-income class is projected to reach about 50% of the population by 2030. As disposable income rises, a qualitative shift in consumption is underway, with a growing segment of consumers valuing brand value and quality, not just price. A department store format like Takashimaya's fits well with this kind of consumer demand.

What this means for Japanese-affiliated tenants

The Takashimaya Hanoi store will serve as a test-marketing venue for Japanese tenant companies entering the northern Vietnamese market. Just as the Ho Chi Minh City store has contributed to sales-channel development for Japanese food and cosmetics brands, the Hanoi store is also expected to serve as a platform for gathering consumer data from northern Vietnam.

Challenges and risks

Hanoi's commercial real estate market is booming, but rents are also climbing sharply. In addition, the rapid growth of e-commerce platforms (Shopee, TikTok Shop) in Vietnam is starting to affect foot traffic to physical stores. How Takashimaya conveys the value of an offline experience will determine its success.

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