People queu to buy tickets at a cinema in Vietnam.
A recent report by Nikkei Asia said that Aeon Entertainment, a subsidiary of Japan's Aeon Group, plans to open its first cinema in Vietnam this year and invest approximately VND3.4–5.2 trillion by 2035 through a joint venture with Beta Media.
Vietnam is Aeon Entertainment's first overseas market. The company likely sees growth potential in a country with a population exceeding 100 million and a limited number of cinemas while demand for movie-going in major cities continues to rise.
Generating trillions in revenue
Currently, South Korean companies dominate Vietnam's cinema market, with CGV and Lotte holding the most significant market shares. A 2022 survey by Statista in collaboration with Q&Me showed that CGV controlled approximately 45 percent of the market, while Lotte held 26 percent. Other players included Galaxy Cinema (10 percent), BHD Star (5.5 percent), and Beta Cinemas (8 percent). State-owned cinemas accounted for only about 2 percent of the market.
According to Box Office Vietnam, the country currently has around 1,200 screening rooms across 212 cinema complexes, with CGV leading the market, operating 83 complexes with 478 screening rooms.
CJ CGV entered Vietnam in 2011 after acquiring an 80 percent stake in Megastar, Vietnam's largest cinema chain, for USD73.6 million.
In 2024, the Vietnamese market generated approximately VND3.84 trillion for CJ CGV, marking a 12.1 percent increase compared to 2023. The company's operating profit in Vietnam reached around VND487.6 billion, an 89.2 percent surge from the previous year. Vietnam was among CJ CGV's strongest-performing markets in terms of revenue growth.
A new player enters the market
According to Statista, Vietnam's cinema industry revenue in 2023 surpassed pre-Covid-19 levels (2019) by more than 30 percent, rising from USD62.3 million to USD80.5 million. Revenue is projected to grow over the next five years at a compound annual growth rate of approximately 4.9 percent, potentially reaching USD110.7 million by 2029.
Aeon Entertainment's plan to open 21 cinemas in Vietnam by 2030 signals a shift in the country's entertainment landscape, potentially disrupting the market dominance of South Korean cinema chains.
Before expanding into the cinema sector, Aeon Group spent over a decade building an extensive retail ecosystem in Vietnam. Its network of shopping malls in major cities, including Hanoi, HCM City, Binh Duong, Hue, and Hai Phong, provides a strategic advantage for Aeon Entertainment to challenge CGV, Lotte Cinema, and Galaxy Cinema.
With strong backing from its parent company, nearly 100 cinemas operated in Japan since 1991, and local market expertise from Beta Media, Aeon Entertainment holds significant potential for success in Vietnam's cinema industry.
Why South Korean and Japanese firms are shifting to Vietnam
According to The Korea Herald, a 2024 report by the Korean Film Council (KOFIC) revealed that South Korean cinemas generated nearly USD911 million in revenue and recorded 123.1 million admissions, marking year-on-year declines of 5.3 percent and 1.6 percent, respectively.
CJ CGV, South Korea's largest cinema chain, has struggled in its home market. In March, four cinemas closed due to rising competition from streaming services and declining audience numbers.
KOFIC data showed that South Korean cinema admissions fell 1.6 percent in 2024 to 123.1 million, only 56 percent of the pre-Covid-19 average between 2017 and 2019. "The domestic film market faces many challenges. We are restructuring to enhance operational efficiency," a CJ CGV spokesperson told Chosun.
OTT (over-the-top) streaming platforms continue to erode South Korea's cinema market share. In 2024, the country's film and video industry was valued at KRW3.33 trillion, with cinemas accounting for just 35.9 percent, while OTT platforms claimed 61.6 percent. In contrast, in 2019, cinemas still held 52.5 percent of the market.
Similarly, Japan's cinema industry has seen little room for growth. According to data from the Motion Picture Producers Association of Japan, box office revenue fell 6.5 percent to JPY207 billion in 2024, while cinema admissions dropped 7.1 percent to 144.4 million.
With Japan's rapidly ageing and shrinking population, entertainment companies see fewer opportunities for domestic growth and are increasingly expanding into foreign markets, including Vietnam.
