18:38 (GMT +7) - Wednesday 20/09/2017

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CGV takes over two Platinum cinemas in Hanoi

Released at: 10:36, 18/07/2017

CGV takes over two Platinum cinemas in Hanoi

Photo: CGV

CGV steps in at two cinemas within Vingroup projects in capital.

by Ngoc Lan

CGV officially took over from Platinum in operating two international-standard cinemas in Vingroup projects in Hanoi on July 14.

The cinemas are located at Vincom Mega Mall Royal City in Thanh Xuan district and Vincom Mega Mall Times City in Hai Ba Trung district.

On March 1, Vincom Retail (VCR) forced the closure of the Platinum Cineplex, owned by the Multivision Plus (MVP) entertainment conglomerate from Indonesia, at Vincom Long Bien Plaza, Vincom Mega Mall Times City, and Vincom Mega Mall Royal City.

During their partnership, VCR said, MVP repeatedly violated the terms of the contract, such as not paying rent. Only when VCR repeatedly submitted payment requests did MVP pay, but not in full.

This was sufficient to terminate the contract.

MVP said it would bring the matter to the attention of relevant ministries in Vietnam and expects intervention.

A representative from VCR, however, noted that the case is a disagreement between two business partners and should therefore be resolved on the basis of law and the trade and civil agreement between the parties.

Ms. Tran Mai Hoa, General Director of VCR, also told local media that the two sides failed to reach agreement on further cooperation.

CGV is a unit of the CJ Group and is one of the Top 5 largest cinema chains in the world and the largest cinema chain in Vietnam.

It has invested around $30 million in nine international standard cinemas in Hanoi to date.

After eleven years in Vietnam, it had invested some $200 million in the country through building 46 cinema complexes with 283 screens in 16 cities and provinces.

It plans to invest in 12-15 new cinemas each year, including four of five in remote areas. It also expects to invest about $15 million in building eight cinema complexes in Hanoi by the end of this year.

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