IKEA, the Swedish world’s largest furniture retailer, plans to invest an estimated $450 million in a retail and warehouse system in Hanoi, according to Nguyen Duc Chung, chairman of the Hanoi People’s Committee. Nguyen Duc Chung revealed the news at a recent conference held by the Ministry of Industry and Trade.
IKEA shop in Vietnam is expected to be IKEA’s main supply hub to serve the entire Southeast Asian market.
Nguyen Duc Chung gave no information about where or when the store will be open as the investment is still in the negotiation process.
“At present, all parties involved are [in] the process of negotiation,” he said.
Since 2015, IKEA has intended to expand its market in Vietnam as Torbjorn Loof, chairman and CEO of Inter Ikea Holdings says the company was planning potential expansion in Vietnam “within five years”.