The Vietnamese subsidiary of Japanese retail heavyweight Aeon has crossed a significant financial threshold, raising its charter capital to over US$1 billion in a move signalling an acceleration of its expansion in the thriving Southeast Asian market.

Aeon Mall Vietnam increased its capital from approximately 20,987 billion dong to more than 23,755 billion dong, equivalent to a little more than US$1 billion, according to the latest data from the National Business Registration Portal.

This represents an injection of roughly 2,768 billion dong, or a 13% increase, cementing Aeon’s status as a heavyweight investor in Vietnam’s retail sector.

The latest capital hike is the culmination of a high-velocity expansion strategy that defined the company’s fiscal activities throughout 2025. Records indicate that Aeon Mall Vietnam executed multiple capital increases last year, starting last June when capital rose from 16,680 billion dong to nearly 20,200 billion dong, followed by a further lift in December.

Led by CEO Nakagawa Tetsuyuki, Aeon Mall Vietnam has utilized this robust financial foundation to shift its focus from primary urban hubs like Hanoi and Ho Chi Minh City to high-growth tier-2 provinces and the central coastal region.

Exceptional performance

The financial rationale for this massive investment is supported by the exceptional performance of the Vietnamese market within Aeon Group’s global portfolio. In the fiscal year ending February 2025, Aeon Mall Vietnam reported an operating profit of 4.2 billion yen ( around US$27.8 million ).

Notably, the subsidiary achieved a staggering 24% operating profit margin in Vietnam, a figure that significantly outpaces the margins of its operations in China ( 7% ) and even its home market of Japan ( 12% ). This profitability is largely attributed to optimized fixed costs and the rapid adoption of modern retail habits among Vietnam’s expanding middle class in a country with more than 100 million people.

Aeon Group entered the Vietnamese market in 2013, opening the first mega-mall in Ho Chi Minh City in early 2014. Currently, the retailer’s footprint includes a network of eight major shopping malls, with Aeon Mall Hue recently marking its debut in the central region’s Hue City.

The newly injected capital is designated to fuel a pipeline of “mega-projects” currently under development, including Aeon Mall Thanh Hoa, designed to be the largest shopping centre in central Vietnam, and Aeon Mall Tran Bien in Dong Nai province near Ho Chi Minh City.

Other strategic projects in Quang Ninh in the north and Danang bordering Hue are also moving forward, supporting Aeon Group’s “Vision 2030” to operate 30 shopping malls nationwide.