Japanese retail giant Aeon will spend 380 billion yen (nearly $3.8 billion) to fund its expansion over the next three years.

And it says, 25 per cent of it will be allocated to open new stores and shopping centres in China and Southeast Asia, particularly in Vietnam and Cambodia, where it plans to open big box stores.

It expects burgeoning middle class in China and Southeast Asia to fuel high demand.

The retailer plans to ramp up its presence overseas to offset slowing growth in Japan, where the population is shrinking.

The past years have not only seen Aeon opening stores outside Japan but also acquiring chains such as Carrefour Malaysia, which it bought for 147 million euros in 2012.

Aeon operates shopping malls, big box mega stores, department stores, supermarkets and convenience stores in Japan and other parts of Asia.