CJ CGV Vietnam, a subsidiary of South Korea's CJ Group, has just opened its 50th cinema in Vietnam in Ho Chi Minh City, expanding its screening facilities in the country to 313 studios and 42,800 seats.
According to the Japan Nikkei Asian Review, the Korean investor said that they have planned to invest about US$200 million over four years to upgrade and expand its screening system in Vietnam.
CJ CGV Vietnam expects to open between 12 and 15 new cinemas a year, at a cost of US$4 to US$7 million each.
In 2011, CJ CGV entered the market by purchasing MegaStar, the nation's largest movie projection system at that time, at US$ 73.6 million.
In May, the biggest cinema operator in Vietnam also opened its ScreenX immersive technology studios in Hanoi and Ho Chi Minh City, the first such facilities in Vietnam.
After 5 years of operation, this corporation named the largest commercial in Vietnam with the revenue of VND1.8 trillion (equivalent to US$ 79 million) by 2016. CJ CGV's revenue has grown steadily over the years.
Dong Won Kwak, general director of CJ CGV Vietnam, said that Vietnam's entertainment market had higher growth rate than last year, estimated at over 20%.
The Vietnamese box office, with some 140 cinemas, which generated revenue of US$130 million last year expects to increase this to around US$200 million next year.
A local survey showed than 55% of Vietnamese people go to the cinema at least once a month, and spend an average of US$4.04 per person.
The market is currently dominated by foreign enterprises including South Korea's CJ CGV Vietnam with 43% share, compatriot Lotte (30%), and Indonesia's Platinum Cineplex (10%). The two local operators, Galaxy and BHD Star Cineplex, have 9% and 6% respectively.
