Japan’s Aeon exits Thai retail to chase Vietnam’s booming middle class

The decision by Japanese retailer Aeon to sell its MaxValu minimart chain in Thailand is the latest example of the tight grip domestic conglomerates hold over Thai consumers, retail experts say. Yet the move also hints at the shifting economic fortunes of neighbouring Vietnam, where major Asian retailers including Aeon are competing aggressively for market share among a rapidly expanding middle class. On September 30, MaxValu, a store beloved by many Thais for its affordability and varied fresh produce, will hand over its 30 Thai stores to Central Retail Corporation, which plans to rebrand them under its Tops minimart brand. Central Group, a property-to-retail giant owned by one of Thailand’s richest families, has scooped up foreign-founded supermarkets in recent years as it expands its dominance across the domestic market. In 2023, Central absorbed around 200 stores from the FamilyMart chain – previously operated by Japanese firm Itochu – also rebranding them as Tops. MaxValu’s exit comes after years of struggling to gain ground in a market effectively divided between two local giants: Central Group and Charoen Pokphand (CP) Group. Both have outspent their rivals to dominate the budget and premium retail segments. CP Group, one of Asia’s most powerful conglomerates, controls the ubiquitous 7-Eleven franchise in Thailand alongside the Makro and Lotus’s chains, the latter bought from UK retail giant Tesco in 2020. Central Retail, a subsidiary of Central Group, operates 734 Tops stores and owns Big C, a budget hypermarket chain popular among domestic shoppers and tourists. The conglomerate, which generated over US$7.7 billion in revenue last year, disclosed the MaxValu acquisition to the Thai stock exchange in early August. The company also has a significant footprint in Vietnam, with the country accounting for roughly 17 per cent of its total sales so far in 2026. Analysts say Aeon’s retreat from the Thai market after nearly four decades is more than a simple case of a company squeezed out by local competition. Instead, it represents a strategic pivot towards Vietnam, where economic growth is forecast to reach up to 8 per cent this year – a powerful pull factor for retailers seeking newly affluent consumers. “Vietnam presents a different growth proposition,” Ben Phutphithak, senior analyst at Euromonitor, a global market research and data analytics company, told This Week in Asia. “Continued economic expansion, rising household incomes and a growing middle class create greater opportunities for modern retailers to expand alongside consumer spending.” “Thailand has increasingly become a share-taking market, where growth requires winning consumers from well-established competitors, while Vietnam offers more opportunities to capture growth as the overall market expands.” Aeon and Central Retail are not the only firms eyeing expansion in Vietnam. South Korea’s GS25 has hundreds of minimarts across the country, while Lotte operates 16 stores and malls, including its flagship in Hanoi, opened three years ago. Vietnam is projected to become the world’s 11th largest consumer market by 2030, with 80 million consumers. Despite recent global volatility, including energy market shocks and the effects of tariffs under Donald Trump’s second presidency, Vietnam’s political leadership has set ambitious economic targets. President To Lam has pledged to push the country towards high-income status through massive infrastructure investments, deregulation and business-friendly reforms designed to unleash its domestic conglomerates. Thailand, on the other hand, has become Southeast Asia’s economic laggard, despite retaining its position as the region’s second-largest economy. This week, Prime Minister Anutin Charnvirakul expressed dismay at sluggish 1.9 per cent year-on-year economic growth, as soaring energy costs triggered by the US-Israeli war on Iran undercut government stimulus and investment. It was the slowest second-quarter growth rate among comparable regional economies. The malaise is directly hitting Thai households. A squeezed middle class, dealing with persistent inflation and increased living costs, has cut discretionary spending, making Thailand a riskier proposition for retailers seeking reliable margins. “Thailand is a relatively mature retail market dominated by established players with significant scale, making it increasingly difficult for a smaller player to identify meaningful whitespace without substantial investment,” Ben Phutphithak added. “Combined with relatively modest economic growth, the potential return from further investment may be less compelling.”

Japan’s Aeon exits Thai retail to chase Vietnam’s booming middle class

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}Aeon is selling its MaxValu stores in Thailand to Central Retail, retreating from a market dominated by local giants

Aeon is selling its MaxValu stores in Thailand to Central Retail, retreating from a market dominated by local giants