Ikea Vietnam plans to invest US$450 million on a retail centre and warehouse system in Hanoi, according to a government official.
Nguyen Duc Chung, chairman of the Hanoi People’s Committee, told a recent conference held by the Ministry of Industry and Trade that the Swedish furniture giant’s local subsidiary is well advanced with plans to launch in the country.
Once completed, the centre will be Ikea’s main supply hub for its Southeast Asian market.
“At present, all parties involved are [in] the process of negotiation,” Chung added.
The centre is expected to boost Ikea’s e-commerce business in the region.
During an interview with Bloomberg in 2017, Torbjorn Loof, chairman and CEO of Inter Ikea Holdings said the company was planning potential expansion in Vietnam “within five years”.
Ikea is steadily expanding its Southeast Asian footprint, the latest largest store planned in Philippines.
Founded in 1943, Ikea is the world’s largest furniture retailer with 400 stores in 49 countries all over the world.
In recent years, Vietnam has been a potential hub for retailers to build warehouses. Last November, Lazada finished a 4000sqm warehouse in Danang.