What: MM Mega Market Vietnam breaks ground on its first USD 20 million department store in Danang, expanding beyond its supermarket operations with a sustainable 19,197-square-meter facility designed to serve over 225,000 local residents.

Why it is important: The development highlights the growing potential of Vietnam's USD 142 billion retail market, with international operators leveraging existing market presence to introduce new retail concepts adapted to local demographics.

MM Mega Market Vietnam, owned by Thai conglomerates Berli Jucker (BJC) and Thai Charoen Corporation (TCC), has begun construction on its first department store in Danang's Lien Chieu district. The USD 20 million facility, spanning 19,197 square meters, incorporates sustainable design elements with recyclable and energy-saving materials. This expansion marks a strategic evolution for the company, which currently operates 21 supermarkets, seven warehouses, five logistics centers, and two central distribution centers across Vietnam. The location strategically serves a population of 225,975 residents plus thousands of factory workers and specialists. Set to open in late 2025, the project represents part of BJC's broader USD 1.14 billion investment in Vietnam, targeting a retail market projected to grow from USD 142 billion in 2023 to USD 350 billion by 2025. Managing Director Bruno Jousselin emphasized this development as a crucial milestone in the company's sustainable expansion strategy in Vietnam.

IADS Notes: MM Mega Market's entry into Vietnam's department store sector comes amid significant retail developments in Southeast Asia throughout 2024. While Central Retail faced challenges in Vietnam with a 0.8% sales decline , other retailers have shown confidence in the market, as evidenced by Takashimaya's announcement of a USD 12.9 million shopping center in Hanoi . The focus on sustainable construction with recyclable and energy-saving materials aligns with broader regional trends, as seen in Thai retailers' commitment to green stores and sustainable practices . This development strategy follows Central Group's successful approach of targeting growing urban areas with comprehensive retail offerings , suggesting a regional shift toward more sustainable and integrated retail developments that combine shopping experiences with environmental consciousness.

Thai-invested MM Mega Market starts building 1st department store in Vietnam