Vietnamese giants eye Myanmar market

Taking the lead in penetrating the Myanmar market, Vietnam’s CT Group has set up a representative office in Yangon city in preparation for the implementation of projects worth over US$150 million.

The firm is settling some legal matters concerning two large projects, which were approved by President Thein Sein at the end of last year.

The first project is to build the 30-storey CT Damasayti Landmark on 6,000 square metres which will provide a trade centre, offices, hotels and luxury apartments for lease. The second one will be a high-rise building complex named CT Yankin Plaza, covering 8,000 square metres.

Both projects are expected to break ground in the third quarter of 2013 and construction work will be completed within two years.

Representing more than 50 Vietnamese associations and businesses, CT Group plans to build an integrated distribution network of traditional and modern channels such as shops, supermarkets, wholesale markets, TV shopping and online shopping services, and a 3-ha plant in Yangon’s Shwe Lin Pan II industrial park to produce wheat flour and instant noodles. These projects are scheduled for completion by the first quarter of 2014.

Another conglomerate, Hoang Anh Gia Lai, is pouring investment capital into real estate projects. The group is currently Myanmar’s largest foreign investor in tourism and hotel services, accounting for 25 percent of the country’s total foreign direct investment (FDI) in the industry.

Hoang Anh Gia Lai is building a five-star international hotel with more than 400 rooms in Yangon. The group’s Chairman Doan Nguyen Duc said that operational projects in Myanmar are paying off well and there is high hope to earn millions of dollars from the country’s real estate market boom in the next five years.

Other groups, such as military-run telecom firm Viettel, Hoa Sen, and FPT are also investing in Myanmar.

Tran Kim Chung, Chairman of CT Group, suggested Vietnamese giants should make the best of their investments in Myanmar’s much-needed areas, such as consumer goods, machinery, construction materials, agricultural products, and infrastructure construction.

In addition, he said, they should also find appropriate solutions to overcome the existing challenges, such as poor infrastructure and tight investment regulations, and gain the upper hand over foreign rivals, including those from China and Thailand.