Japan’s Aeon on expansion drive in ASEAN

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Aeon credit serviceJapanese retail and finance conglomerate Aeon said it will expand its business into five countries in Southeast Asia including Thailand if those countries provide a high growth rate in the next few years. That is especially the case for Cambodia, Laos and Myanmar, The Nation reported.

The Aeon Group has assigned Aeon Thana Sinsap (Thailand) to oversee microfinance and leasing businesses in Cambodia, Myanmar and Laos through the latter’s wholly owned subsidiaries. Aeon Thana Sinsap holds a 20-per-cent stake in Aeon’s leasing business in Vietnam.

Yasuhiko Kondo, managing director of Aeon Thana Sinsap, said that Aeon in Japan was looking at increasing its investment in the region once the new markets showed good prospects. Kondo said the company’s wholly owned subsidiaries in Cambodia and a subsidiary in Vietnam generated 5 per cent of Aeon Thana Sinsap’s profits, which the company hoped would double to 10 per cent within three to five years as Laos and Myanmar gradually generated a profit.

Aeon in Cambodia has two branches with a customer base of 15,000 but plans to open more. Kondo said Aeon Thana Sinsap hoped that its consumer-finance net profit in Cambodia would be accelerated when Aeon opens in a shopping mall in that country midyear.

Aeon Cambodia provides leasing for motorcycles, home appliances and mobile phones. Kondo said Cambodia was a high-growth market, but added that two subsidiaries in Myanmar and Laos that opened last year were not generating a profit yet but the company hoped that in the next two or three years both markets would start contributing.

Kondo said Aeon Thana Sinsap provided capital to the firms in Cambodia, Myanmar and Laos, and once the companies started generating a profit the other firms would seek to fund themselves, including through bond issues.

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Reading Time: 2 minutes

Japanese retail and finance conglomerate Aeon said it will expand its business into five countries in Southeast Asia including Thailand if those countries provide a high growth rate in the next few years. That is especially the case for Cambodia, Laos and Myanmar, The Nation reported.

Reading Time: 2 minutes

Aeon credit serviceJapanese retail and finance conglomerate Aeon said it will expand its business into five countries in Southeast Asia including Thailand if those countries provide a high growth rate in the next few years. That is especially the case for Cambodia, Laos and Myanmar, The Nation reported.

The Aeon Group has assigned Aeon Thana Sinsap (Thailand) to oversee microfinance and leasing businesses in Cambodia, Myanmar and Laos through the latter’s wholly owned subsidiaries. Aeon Thana Sinsap holds a 20-per-cent stake in Aeon’s leasing business in Vietnam.

Yasuhiko Kondo, managing director of Aeon Thana Sinsap, said that Aeon in Japan was looking at increasing its investment in the region once the new markets showed good prospects. Kondo said the company’s wholly owned subsidiaries in Cambodia and a subsidiary in Vietnam generated 5 per cent of Aeon Thana Sinsap’s profits, which the company hoped would double to 10 per cent within three to five years as Laos and Myanmar gradually generated a profit.

Aeon in Cambodia has two branches with a customer base of 15,000 but plans to open more. Kondo said Aeon Thana Sinsap hoped that its consumer-finance net profit in Cambodia would be accelerated when Aeon opens in a shopping mall in that country midyear.

Aeon Cambodia provides leasing for motorcycles, home appliances and mobile phones. Kondo said Cambodia was a high-growth market, but added that two subsidiaries in Myanmar and Laos that opened last year were not generating a profit yet but the company hoped that in the next two or three years both markets would start contributing.

Kondo said Aeon Thana Sinsap provided capital to the firms in Cambodia, Myanmar and Laos, and once the companies started generating a profit the other firms would seek to fund themselves, including through bond issues.

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