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CGV opens 50th cinema in Vietnam

Released at: 15:01, 05/09/2017

CGV opens 50th cinema in Vietnam

Photo: CGV Vietnam

Following latest HCMC opening, Vietnam's leading cinema chain aims to open 12 to 15 cinemas every year.

by Hong Nhung

CJ CGV Vietnam (CGV), a subsidiary of South Korea’s CJ Group, opened its 50th cinema complex in Vietnam a few days ago, at Parkson Dong Khoi in Ho Chi Minh City’s District 1, with five modern cinemas and 404 seats.

The opening increases CGV’s cinemas to 313 in the country with 42,795 seats and confirms its commitment to building high quality cinema complexes in Vietnam, to bring the movie experience to more and more people around the country. In an official statement released in May, the South Korean company said it planned to invest some $200 million over the next four years to upgrade and expand its cinema complexes in Vietnam, including in second tier cities and remote areas.

CGV began operating cinemas in Vietnam six years ago after acquiring MegaStar, the country’s largest cinema chain at the time, for $73.6 million. It is now Vietnam’s largest film distributor and cinema operator and posted $79 million in revenue last year, up 3.3 per cent year-on-year, and around $4.1 million in profit, which was almost triple the level of the previous year.

“The local entertainment market’s high annual growth, which has been estimated at more than 20 per cent, offers huge potential for investors and justified the company’s investment, which is far higher than its annual profits,” said Mr. Dong Won Kwak, General Director of CGV Vietnam.

Related businesses are vying with each other to find the best way to maximize cinema talent and other resources to develop the local film market, including arranging film-making workshops and investing in movie projects.

By the end of this year, it will be operating 54 or 55 cinema complexes nationwide, including in remote areas. It will invest in building 12-15 new complexes each year, four or five of which will be in remote areas. With total investment of $4-7 million per complex, total investment will reach $70 million.

Vietnam’s biggest cinema operator in Vietnam also launched its immersive technology studios in Hanoi and Ho Chi Minh City in May, the first such facilities in Vietnam. CJ CGV Vietnam is now testing other technologies for large screens and expects to introduce new services in Hanoi and Ho Chi Minh City in the next few months, as a part of its total investment of $70 million into Vietnam’s cinema market this year.

Mr. Dong Won Kwak told the opening ceremony that Vietnam’s population is double the size of South Korea’s and cinema-going is becoming increasingly popular, meaning the country has a lot of development potential over the next decade.

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