As reported by Nikkei Asia, Toshin Development, a subsidiary of Takashimaya, has started construction of a mixed-use complex that includes a department store, apartments, offices, and commercial spaces. Takashimaya is expected to invest an estimated 2 billion yen ($12.9 million) in opening the department store. The project will make it the first Japanese department store chain to establish a physical presence in Hanoi.

Takashimaya positions Vietnam as a promising market and will aim to further expand sales opportunities. However, there is fierce competition as South Korea's Lotte Group has launched a mall and a department store in the capital, and Japan's Aeon Mall also operates in the city.

"We'll create stores that will compete with other stores," Murata said. "The demand for Japanese product quality will rise as the standard of living improves."

The department store will offer 10,000 square metres of sales space alongside specialty stores. Takashimaya is considering bringing tenants from Japan to sell food, cosmetics, and children's clothing at these stores.

The move marks Takashimaya's expansion in Vietnam's retail market after opening a complex in Ho Chi Minh City in 2016 with about 150 specialty shops alongside a department store.

For the fiscal year that ended in February 2024, Takashimaya Ho Chi Minh City recorded steady growth in increased revenue and profit thanks to an initiative involving incorporating Japanese brands, a first for Vietnam.

At Takashimaya Ho Chi Minh City, the retailer will increase its net sales by reorganising product categories and brands and strengthening events to improve the store's ability to attract customers.

Takashimaya aims to double the sum of operating profit and dividend income for Vietnamese businesses from ¥2.2 billion ($14.3 million) in FY2023 to ¥4.4 billion ($28.5 million) by FY2026.