Swedish home furnishings giant IKEA plans to build a retail centre and warehouse system in Ha Noi with an investment of US$450 million, said Nguyen Duc Chung, chairman of the city’s People’s Committee.

Chung told a meeting in Ha Noi on Thursday the centre would be IKEA’s main supply hub for Southeast Asia as soon as it comes into operation.

All relevant parties have been involved in negotiations, he added.

Torbjorn Loof, chairman and CEO of Inter IKEA Holdings, said in an October 2017 interview with Bloomberg that the company planned to expand its operations in Southeast Asia.

Loof said that in the next five years, the company plans to add stores in Viet Nam and the Philippines to its locations in Singapore, Malaysia and Thailand.

Founded in 1943, IKEA is the world’s largest furniture retailer, known for its ready-to-assemble furniture, kitchen appliances and home accessories. ​It has 400 stores in 49 countries all over the world. — VNS