The $300 million estate project of Hoang Anh Gia Lai (HAGL) Group in Yangon has broken the four-pillar position of the investors of Singapore, Thailand, Japan and Hong Kong in the tourism and commerce real estate market in Myanmar.
The site for HAGL's project in Yangon, Myanmar.
According to the Ministry of Hotels and Tourism of Myanmar, since the first Foreign Investment Law was issued and the Investment Committee was established in 1988, many international investors have poured capital in the hotel and tourism sector. However, the foreign capital flow and the number of projects have sharply increased after the economic sanction was lifted.
By mid-December this year, Myanmar had 35 hotel projects with foreign capital, with a total capacity of 6,235 rooms across the country and over $1.1 billion of investment and assets. Previously, Singapore took the lead in investment and assets, followed by Thailand, Japan and Hong Kong. In the past there was no hotel of Vietnamese investors in Myanmar.
Since 2012, when HAGL entered this market, the situation has changed.
The Minister of Hotels and Tourism of Myanmar, HE U Htay Aung, said: "HAGL is not only the first Vietnamese investor pouring capital into the hotel and tourism sector, but also the largest foreign investor, accounting for 26 percent of total FDI in this field in Myanmar."
According to HE U Htay Aung, the Hoang Anh Gia Lai Myanmar Centre project includes a five-star international hotel with over 400 rooms, a trading center, an office building and apartment building for rent. The project is located in the hub of Yangon.
Speaking to a local newspaper after the signing ceremony of the Build Operate Transfer (BOT) and land lease contract with the General Department of Hotel and Tourism of Myanmar, general director of HAGL Land Le Hung said that all legal procedures of the project has been completed. The whole land has been cleared. "We are waiting for the Ministry of Planning and Investment of Vietnam’s license to start the project," he said.
The first phase of the project will be carried out in three years, from 2013 to 2015 and the second phase will be from 2016 to 2018.
"Myanmar is new and every-day changing market. When it is fully opened, investors would rush down here. We want to catch the opportunity in this market because…," Hung said.
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