Hoang Anh Gia Lai (HAGL) Group began construction of a US$440 million trade centre, hotel and service office complex in the Myanmar city of Yangon on June 5.
The 8-ha Hoang Anh Gia Lai Myanmar Centre is the company’s largest investment project at present. It was financed by the Bank for Investment and Development of Vietnam (BIDV), Eximbank and Sacombank.
The company’s chairman Doan Nguyen Duc said the project will be completed within six to seven years. He predicted that when operational, it will help meet the city’s increasing demand for property, especially after Myanmar opened its doors to foreign investment in 2011.
Office spaces in Yangon are being rented at US$75-150 per sq.m per month, while a night in a hotel costs around US$300, according to domestic press.
Myanmar Minister of Hotel and Tourism U Htay Aung said that his country plans to organise many major events in the next few years, including ASEAN summits and tourism forums, so investment in hotels and other travel-related business has become very significant.
Last year, Myanmar welcomed about one million international tourists, up 20 percent over the previous year. The number is expected to reach 1.5 million this year, the minister said.
According to U Htay Aung, HAGL’s investment represents 26 percent of the total foreign direct investment capital poured into Myanmar’s hotels and trade centres.
The company’s total overseas investment amounts to roughly US$1.5 billion.
Source : VNA/VOV Online