Takashimaya Bets on Hanoi: A 200-Year-Old Kyoto Shop's Southeast Asian Gamble

Last year, Japan's Takashimaya Group broke ground on a mixed-use complex called Westlake Square in Hanoi's Tây Hồ Tây (West of West Lake) Starlake district.
It will house Hanoi's first Takashimaya department store, with an expected opening in autumn 2027.

This is Takashimaya's first new overseas department store since its Bangkok location in 2018 — an eight-year gap — and its second in Vietnam.

Why would a nearly 200-year-old Kyoto retailer pick Hanoi as its next big move?
To answer that, you have to start with a retreat from Fifth Avenue.

Starting From 3.6 Square Meters in Kyoto

In 1831, a merchant named Iida Shinshichi opened a tiny shop in Kyoto selling secondhand kimonos.
The space was just 3.6 square meters — roughly the size of a double bed.
That was Takashimaya's beginning.

Over the next century-plus, the company evolved from kimono shop to department store, expanding to Osaka and Tokyo and becoming one of Japan's heritage retail brands.
In 1958, Takashimaya took its first step abroad with a store on New York's Fifth Avenue.

But the New York store never really turned a profit in more than fifty years.
In 2010, Takashimaya closed it and redirected resources to Asia.

Ten Years of Losses in Singapore — Then a Turnaround

Takashimaya's Asian strategy started in Singapore.
In 1993, it formed a joint venture with local conglomerate Ngee Ann Group and opened in Ngee Ann City on Orchard Road.

The early years were rough.
A decade of losses led to internal debates about pulling out.
But Takashimaya stayed, repeatedly adjusting its product mix and floor layout until it found the right formula for the Singapore market.

Today, the Singapore store contributes about one-fifth of the group's operating profit — its most successful overseas location.
The experience taught Takashimaya a lasting lesson: overseas markets take time, and you can't just copy-paste the Japanese playbook.

Seven Years of Losses in China — and a Near Exit

After Singapore turned around, Takashimaya entered Shanghai in 2012 with a store in the Changning district.
It lost money for seven straight years.

In June 2019, Takashimaya announced it was leaving China.
Two months later, the plot twisted: the landlord agreed to cut rent, the Shanghai city government stepped in to mediate, and Takashimaya reversed course at the last minute.

In 2016, the company also exited its Taiwan joint venture — Dayeh Takashimaya — with local partner Dayeh Group taking full ownership.

New York: closed. Taiwan: exited. Shanghai: nearly closed.
By late 2019, Takashimaya's only truly solid overseas footholds were Singapore and Ho Chi Minh City.

Ho Chi Minh City: Vietnam's First Japanese Department Store

In August 2016, Takashimaya opened in Saigon Centre in Ho Chi Minh City's District 1 — Vietnam's first Japanese department store.
Its partner was Singapore's Keppel Land, and Takashimaya's real estate subsidiary Toshin Development held about 22.7 percent of Saigon Centre Phase 2.

The Ho Chi Minh City store didn't try to replicate Japan.
The basement food hall dedicated about half its space to Japanese brands and the other half to Vietnamese flavors — like wagyu beef phở.
Seating areas were deliberately larger, because Vietnamese customers prefer dining with family and friends, unlike the takeout-oriented basement floors of Japanese department stores.

Eight years in, cosmetics and fashion are the top revenue categories, and overall sales have grown steadily.
In fiscal year 2024 (ending February 2024), the Ho Chi Minh City store reported revenue of about JPY 3 billion and operating profit of about JPY 100 million.
The numbers aren't huge, but Vietnam is one of the few overseas markets where Takashimaya is still growing.

Hanoi: Not Just a Store — a Real Estate Play

Takashimaya's Hanoi push started earlier than most people realize.

In 2019, Toshin Development and Shimizu Corporation formed a joint venture to acquire Indochina Plaza Hanoi in Cầu Giấy district, with Toshin holding a 60 percent stake.
The mixed-use building includes retail, offices, and residential units totaling about 32,000 square meters.
After renovations completed in 2023, it was rebranded as "The Loop by Takashimaya Group" — Takashimaya's first foothold in Hanoi.

In 2022, Takashimaya established Toshin Development Vietnam to manage its Vietnamese real estate portfolio.
Toshin now has at least five projects underway in Vietnam, including participation in Vingroup's massive Royal Island (Vũ Yên) township development in Hải Phòng, alongside Nomura Real Estate and Taisei Corporation.

In other words, Takashimaya in Vietnam is no longer just about department stores.
It's running a dual-track strategy: real estate plus retail.

Westlake Square: Hanoi's First Takashimaya Department Store

Westlake Square follows the same model as Ho Chi Minh City's Saigon Centre: the building is called Westlake Square, and the anchor tenant is a Takashimaya department store.
It sits on the C1-CC1 plot in the Starlake urban area — one of Hanoi's most expensive neighborhoods in recent years.
The developer is Toshin Development, with a total site area of about 1.72 hectares.

Phase 1 will have 10 floors above ground and 3 below, with total floor space of about 43,000 square meters.
Basement 1 through the sixth floor will house the Takashimaya department store and retail space; floors 7 through 10 will be offices.
Investment: about JPY 2 billion (roughly USD 12.9 million).
Construction began in August 2025, with opening targeted for Q3 2027.

Phase 2 plans call for a 35-story office tower, not expected to start before 2030.

Takashimaya has set a profit target of JPY 4.4 billion for its Vietnam operations in fiscal year 2027 — double the 2023 figure.
Whether Westlake Square can deliver remains to be seen, but Vietnam's growing weight within the group is clear.

The Japanese-Korean Retail Battle at Starlake

Takashimaya won't have the neighborhood to itself.

Starlake has also attracted South Korea's Lotte Group and Japan's Aeon Mall.
Shortly after Takashimaya broke ground in August 2025, Vietnamese conglomerate THACO's subsidiary THSO began developing Thiso Mall in the same West Lake West area.
Add Lotte Mall West Lake, which opened in 2023, and the district is becoming a battleground for Japanese, Korean, and Vietnamese retail giants.

Hanoi's premium mall market is still in its early stages.
Whether consumer spending can support this many large-scale complexes is the question everyone is watching.
Takashimaya's advantage is its experience running The Loop in Hanoi for several years, giving it some local market knowledge.
But Starlake is a new development area — residents are still moving in, and the commercial district needs time to mature.

Takashimaya spent nearly 200 years getting from Kyoto to Hanoi.
Whether it can establish itself here may be another question that takes a decade to answer.