Foreign "big guys" make a fortune from cinema business in Vietnam

Recently, Nikkei Asia reported that Aeon Entertainment - a subsidiary of Aeon Group - plans to open its first cinema in Vietnam this year and invest 20-30 billion yen (equivalent to 3,400-5,200 billion VND) by 2035 through a joint venture with Beta Media.

Vietnam is the first market Aeon Entertainment has expanded into overseas. The company sees growth potential in a country with a population of more than 100 million and a limited number of cinemas.

In fact, the movie market in Vietnam is gradually becoming an attractive "piece of cake" as the demand for going to the cinema of the audience, mostly in big cities, is increasing.

However, the majority of the market share is held by "giants" from Korea such as CGV and Lotte. Of which, CGV accounts for about 45% of the market share. In addition, there are many other brands such as Galaxy Cinema, BHD Star, Cineplex, Cinestar, Beta Cinemas...

Earn thousands of billions of dong each year

According to Box Office Vietnam statistics, the country currently has about 1,200 screening rooms and 212 cinema complexes. Of these, CGV leads with 83 cinema complexes and 478 screening rooms.

CJ CGV Company Limited (Korea) entered the Vietnamese market in 2011 after spending 73.6 million USD to buy 80% of Megastar's shares - the owner of the largest cinema chain in Vietnam at that time. 2 years later, CJ CGV changed the MegaStar brand to CGV.

Last year alone, the Vietnamese market brought in 207.2 billion won (about 3,840 billion VND) for CJ CGV, an increase of 12.1% compared to 2023. On average, CGV Vietnam earned more than 10.5 billion VND per day in 2024.

Operating profit of the parent company of CGV Vietnam cinema chain reached about 26.3 billion won (equivalent to about 487.6 billion VND), up 89.2% compared to 2023. Last year, Vietnam was also one of the markets that recorded the best revenue growth results for CJ CGV.

Second only to CGV in market share, Lotte Cinema Vietnam was established in 2008. After nearly 15 years of entering the market, this Korean "giant" owns 45 cinema complexes across the country and holds 26% of the market share.

However, data from Lotte Shopping LTD.'s financial report shows that the general business situation of the cinema segment at the company's branches, including Vietnam, is not very positive.

Specifically, in 2023, Lotte Shopping LTD.'s consolidated revenue from movie screening activities reached more than 562 billion won (about 9,800 billion VND), an increase of 13% compared to 2022. Operating profit was negative more than 8.3 billion won (more than 145 billion VND), while in 2022, the business made a profit of 791 million won (about nearly 14 billion VND).

Notably, the report also revealed that in 2023, Lotte Cinema Vietnam lost more than 10 billion won (nearly 175 billion VND).

In addition to CGV and Lotte, the Vietnamese cinema market also has the presence of many other brands such as Galaxy Cinema, BHD Star, Beta Cinemas, Cineplex, Cinestar... Of which, Galaxy accounts for 10% of the market share, BHD accounts for 5.5% and Beta Cinemas accounts for 8%. The state-owned cinema system only accounts for about 2% of the market share, according to statistics from Statista in cooperation with Q&Me in 2022.

What is "rookie"?

According to data firm Statista, total movie theater revenue in 2023 is expected to increase by more than 30% compared to pre-pandemic levels (2019), increasing from $62.3 million to $80.5 million. Revenue is expected to continue to grow over the next five years (2024-2029) at a compound annual growth rate (CAGR) of about 4.9% and could reach $110.7 million in 2029.

The arrival of Aeon Entertainment in a joint venture with Beta Media is expected to change the picture of the cinema market in Vietnam - which is mainly the playground of Korean giants. Aeon Entertainment is a member of the ecosystem of the Japanese retail group Aeon and Vietnam is the first foreign market where the company has expanded its operations.

Before entering the film industry in the Vietnamese market, Aeon Group had built a large retail ecosystem over the past decade, including 7 shopping malls with a total leasable area of ​​462,000m2 along with a series of small-scale supermarket chains, general stores, lean supermarkets and specialty stores.

Aeon Cinema in Japan (Photo: Aeon).

As of May 2023, Aeon has invested nearly 1.2 billion USD in Vietnam. This "giant" plans to develop 20 more shopping malls in Vietnam. Aeon Entertainment's plan to invest up to 30 billion yen and its ambition to open 21 cinemas in Vietnam by 2030 is not only a strategic move by the Japanese corporation but also marks a transformation of the domestic entertainment market.

With a network of shopping malls in major cities such as Hanoi, Ho Chi Minh City, Binh Duong, Hue, Hai Phong, this will be an advantage for Aeon Entertainment to challenge the position of CGV, Lotte Cinema or Galaxy Cinema... Aeon will also optimize construction costs and access existing customers from shopping malls.

In addition, thanks to the support from the parent company combined with the experience of operating nearly 100 cinema complexes in Japan since 1991 and the market understanding from Beta Media, Aeon Entertainment possesses great potential to develop the film industry in Vietnam.

Why are Korean and Japanese businesses shifting to Vietnam?

The Korea Herald newspaper quoted the annual report of the Korean Film Council as saying that in 2024, Korean cinemas earned nearly 1,200 billion won (911 million USD) and attracted 123.1 million viewers, marking a decrease of 5.3% and 1.6% respectively compared to 2023.

South Korea's largest cinema chain, CJ CGV, has also struggled domestically and scaled back operations, closing four theaters in March amid the rise of streaming services and falling moviegoers.

According to the Korean Film Council (KOFIC), the total number of moviegoers in South Korea fell 1.6% in 2024 to 123.1 million, just 56% of the pre-pandemic average from 2017 to 2019. "The domestic film market still faces many challenges. We are restructuring to improve operational efficiency," a CJ CGV spokesperson told Chosun.

OTT platforms - Internet-based services (radio, television, messaging, etc.) - continue to threaten the market share of Korean cinemas. In 2024, the Korean film and video industry was valued at 3,330 billion won, but cinemas accounted for only 35.9%, while OTT platforms accounted for 61.6%. Meanwhile, in 2019, cinemas still accounted for 52.5% of the market share.

According to the Korea Times, the economic downturn since the second half of 2024 has also caused consumers to tighten their spending, making going to the movies a luxury for many. Furthermore, rising production costs and high box office risks have made major studios reluctant to produce films, leading to a decline in both the quantity and quality of films shown in theaters.

Foreign giants account for the majority of the market share in the Vietnamese film screening market (Photo: Korea Times).

Similarly, in Japan, the country's movie market has little room for growth. According to Nippon, citing figures from the Japan Film Producers Association, total box office revenue in Japan fell 6.5% to 207 billion yen in 2024. Movie theater attendance fell 7.1% to 144.4 million.

In addition, as Japan's population is rapidly aging and shrinking, many entertainment companies have realized that there are few growth opportunities at home and have therefore expanded to other markets, including Vietnam.

Source: https://dantri.com.vn/kinh-doanh/ong-lon-ngoai-hot-bac-nho-kinh-doanh-rap-phim-o-viet-nam-20250325171453406.htm