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Vietnam's Eurowindow is expanding into Myanmar, further investment anticipated
Vietnamese people are interested in the Myanmar markets. Its first plant, in which an expected $15-20 million will be invested, will produce door and window products for the area. The second plant will produce $80-100 million in building material, part of which will be used as feedstock for Eurowindow's first Myanmar plant.
Most of the rest is distributed to Myanmar's companies and customers and exported to neighbouring states. The first Eurowindow plant is scheduled to have between 500 and 1,000 employees. On the opening day, the business concluded its first agreement with HTE Integrated (Myanmar) to deliver timber, aluminum door and glazed partitioning for the Thilawa Special Economic Zone superhotel development.
In the first three month she is planning to produce and sell her goods in Myanmar at a price 20 per cent lower than in Vietnam to do more businesses, Mr Hong said. With sales of $142 million in 2017, the group currently operates five plants in Hanoi, Da Nang and Binh Duong, Vietnam.
The Eurowindow Group has decided to enter Myanmar at a point in the year when, according to the Eurowindow Group, the building industry is set to see an annual growth of 30 per cent. "We also see a similarity with Vietnam 10 years ago that the need for high-quality building materials in the Myanmar region will increase.
M. Hong said Myanmar's effort to draw investment from Vietnam also had a role to play in Eurowindow's choice to come to Yangon. Burma and Vietnam are committed to "strengthening business relations and giving preference to specific industries such as transportation, infrastructures, tourism, farming, forest, telecommunications in Myanmar," with the goal of achieving a two-way trading worth $1 billion, said Ms Vo Thi Ngoc Diep, Vietnam Business Counselor in Myanmar.
Indeed, bilateral trading between the two nations last year amounted to 825 million dollars, an increase of more than 50 percent over 2016. During the same timeframe, Vietnam was also one of the seven major investment banks in Myanmar, with a combined investment volume of $2.1 billion in 2017. She is currently the second most important ASEAN investment in Myanmar.
In the past year, the Viet Namese designer Hoang Anh Gia Lai (HAGL) and City Mart Holdings concluded a contract for the construction of an Ocean Center self-service department store in the second stage of its Myanmar Center development. In 2016, HAGL began construction of the second stage of the Myanmar Centres. In the first stage of the $440 million property, the Myanmar Plaza mall and a Melia retail complex were built.