Vietnam lifts second-store scrutiny for foreign retailers under CPTPP
Vietnam will stop applying extra regulatory scrutiny to second or subsequent stores opened by retailers from CPTPP member states starting 18 October. Aeon Vietnam aims to operate 300 supermarkets by February 2031, which would require opening more than one outlet per week.
The decree issued this month eases Vietnam’s Economic Needs Test, which previously required retailers to prove new outlets would not harm surrounding businesses. The change fulfills Vietnam’s CPTPP commitment to scrap ENTs by January 2024, after the obligation was written into domestic law. Japanese retailers such as Aeon, FamilyMart and FujiMart are entitled to the exemption, while clothing chains like Uniqlo can now open standalone stores instead of being confined to shopping centres. Vietnam’s retail sales are expanding by more than 10% and the Japan External Trade Organization’s Hanoi office reports growing interest in the market.
“This is extremely important as we pursue our medium-term plan to triple the scale of our business in Vietnam over the next five years,” Daisuke Tezuka, Aeon Vietnam general director said.
“necessary to carefully assess the effectiveness of deregulation,” Sumitomo representative said.
Before the decree, Vietnam’s Economic Needs Test had caused unexplained delays for foreign retailers, sometimes taking months to conclude. The change implements a CPTPP obligation that Vietnam agreed to upon joining the pact, which required scrapping ENTs by January 2024.
What we know
The change takes effect on 18 October.
Aeon is reportedly aiming to run 300 supermarkets in the country by the year ending February 2031, which would mean opening more than one outlet a week.
FamilyMart is targeting 300 outlets in Hanoi alone by fiscal 2031, while supermarket operator FujiMart, which is partly owned by Sumitomo, plans to reach 50 stores nationwide over the coming years.
Vietnam’s retail sales are expanding by more than 10%, and the Japan External Trade Organization’s Hanoi office notes growing interest in the market.
The move satisfies an obligation Vietnam accepted upon joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), under which it agreed to scrap ENTs by January 2024.