HA NOI (VNS)— 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 yesterday.
Hoang Anh Gia Lai Myanmar Centre covers a total area of 8ha and is the company's largest investment project at present. It was financed by the Bank for Investment and Development of Viet Nam (BIDV), Eximbank and Sacombank.
Company chairman Doan Nguyen Duc said the project would be completed within six to seven years. He predicted that when operational, it would help meet the city's demand for such properties, which had become "very hot" since Myanmar opened its doors to foreign investment in 2011.
Office spaces in Yangon were being rented at $75-150 per sq.m per month, while a night in a hotel cost around $300, according to domestic press.
Myanmar Minister of Hotels and Tourism H.E U Htay Aung said that the nation planned to hold many major events in the next few years, including ASEAN summits and tourism forums, so investment in hotels and other travel-related business had significant potential.
Last year, about a million international tourists visited Myanmar, an increase of 20 per cent over the previous year. The number was expected to reach 1.5 million this year, the minister said.
According to U Htay Aung, HAGL's investments represent 26 per cent of the total foreign direct investment capital poured into Myanmar's hotels and trade centres.
The company's total overseas investment capital amounts to about $1.5 billion. — VNS