Multi-industry THACO Group fully invests in HAGL Myanmar Project
Myanmar Centre Complex project becomes a typical project in the model of high-end complex model: Trade Center – Office – Hotel – Convention Center – Apartment for rent. This will be a project that will leave a mark of pioneering and large-scale investment of Vietnamese enterprises in Myanmar, bringing sustainable values to customers and the community.
With more than 22 years of development, THACO Group of Vietnam is a multi-industry group of which Mechanics and Automotive are two main businesses. The group also operates in other businesses that support each other to create synergy values and improve overall competitiveness including Agriculture, Construction & Investment, Logistics and Commerce & Service.
THACO embraces the strategy of participating in the global automotive value chain through partnerships with international auto brands and investing in the production of automotive parts and components aimed at increasing added values.
The company has now been considered the leader of the automotive market in Vietnam with a 35% market share, supplying diverse types of vehicles from various brands from mid-range to premium; managed in an enclosed value chain from research and development, automobile manufacturing and assembly at THACO Chu Lai Industrial Park which implements modern, automated manufacturing technologies to allow both mass production and customization.
We are manufacturing and distributing Kia, Mazda, Peugeot, BMW, MINI passenger cars, BMW Motorrad motorcycles, THACO buses, Mercedez-Benz buses, Iveco Daily minibuses, Fuso and Foton trucks under a nationwide retail and aftersales network of over 300 showrooms and dealerships. We have also exported automobiles as well as spare parts and components to overseas markets.
THACO Chu Lai Industrial Park in central Quang Nam province has 7 automotive assembly plants – THACO Kia plant, THACO Mazda plant, THACO luxury cars plant, THACO limousine passenger car plant, THACO truck plant, THACO bus plant, semi-trailer and specialized vehicle plant. To meet the development strategy in the new period, THACO’s plants have been upgraded with automated machines and implemented digital management to produce products as quality as those made in developed countries as USA, Japan, Myanmar, Thailand, South Korea, Poland, Malaysia, the Philippines, Cambodia, and Laos, etc.
Meanwhile, THACO’s 12 support industry factories produce automotive glass, seats, wire harness, plastic products, automotive interior products, composite products, automotive springs, automotive moving parts, air conditioners for passenger cars, trucks and buses, chemical products and gloves.
We are determined to maintain our leading position as an automaker, expand our business in ASEAN markets, strengthen our international cooperation to introduce new technologies and in doing so, to increase the localization ratios, participate in the global value chains, reinforce the foundation to develop into a multi-industry group and overall improve our competitiveness.
THADICO invests and develops traffic infrastructure projects and specialized industrial parks suitable with THACO’s multi-industry strategy, urban areas, residential properties as well as mixed-use real estate within an enclosed value chain from research and design, construction to management and operation.
At present, in Ho Chi Minh City, THADICO is the investor of main traffic infrastructure projects in Thu Thiem new urban area. Regarding urban area and industrial park development, we are investing in the 106-hectare Sala City, an ecological city with over 1,000 villas, shop houses and more than 5,000 apartments in Ho Chi Minh City; 1,200-hectare THACO Chu Lai Industrial Park in Quang Nam province; and nearly 200-hectare THACO Thai Binh Agricultural Industrial Park in Thai Binh province. We are also building and renewing urban areas in other big provinces in Vietnam, such as Ben Tre, Lam Dong, Quang Nam and Thai Binh provinces, etc.
In 2019, THACO established THAGRICO, the agriculture subsidiary that utilizes the industrial management framework, mechanized solutions and technology management to assist in large-scale organic agricultural production of fruits and cereals as well as the raising of cattle and pigs, meeting demands of local and export markets.
With 44,000 hectares of land for agricultural production in Vietnam’s Central Highlands and Cambodia, THAGRICO has cultivated 17,000 hectares of fruits, including 10,000 hectares of bananas, 4,000 hectares of mangoes, over 6,900 hectares of cattle farms and 350 hectares of pig farms.
THACO established THILOGI to connect logistic services at Chu Lai in central Quang Nam to provinces in central Vietnam and Central Highlands and to various ports for exports; to supply logistics solutions for automobiles and agriculture to support THACO’s multi-industry strategy as well as its clients’ needs. Today, THACO Chu Lai Port is a centralized logistics hub in central Vietnam with full-package logistics services including sea port, road transport, warehouses, and international shipping routes to and from China, South Korea and Japan.
THACO’s commerce business, THISO, supports the development of mixed-use and commercial real estate of THADICO and provides a retail channel for THAGRICO agricultural produce, while executing the “ONE DESTINATION – MULTIPLE SERVICES” retail model which combines automobile – motorcycle showroom complex.
Acquiring HAGL Myanmar, THACO now fully invests in HAGL Myanmar project
As Myanmar gets ready to open up the country, welcoming foreign investment beginning in 2010, HAGL Myanmar submitted an investment proposal to the government of Myanmar. The proposal outlines land use of 7.3 ha which used to be the Office of the Ministry of Industry to develop the complex – commercial centre, offices for lease, 5-star hotel and apartments. The total investment capital of the project is USD 440 million.
In 2015, the phase (1) of the project was completed and the operations came to live for two Grade-A office towers and an international retail shopping centre. In July 2016, the 5-star hotel with 430 rooms were assigned under the management of Melia Group.
In August 2018, THACO Group and HAGL Myanmar signed a strategic cooperation agreement in which THACO will involve in 65% of the project shares to continue developing the phase (2) of the Myanmar Centre Project.
In October 2019, THACO has acquired 100% of the project shares to upgrade the phase (1) and to continue developing the phase (2) of the project which includes –
(a) A commercial area with a business space of nearly 30,000 square meters for a full range of fashion retail, food, supermarket, cinema and indoor entertainment areas,
(b) Office Tower,
(c) Conference Center that can accommodate more than 1,500 guests,
(d) More than 900 luxury apartments.
Upon the completion of the whole project, Myanmar Centre Complex is expected to have a total construction floor area: 730,000 square meters, four basements, five floors of commercial podiums, 5 blocks of apartment towers and office spaces for rent.
The adjusted investment for the construction of phase (2) is estimated at USD 435 million and the total investment capital of the project is over 700 million USD.
It is expected that, when completed and put into operation, the hotel area, commercial center, and office towers will bring in a revenue of about 110 million USD annually and create over 1,000 jobs in Yangon, overall contributing to Myanmar’s economic development in this period of integration and development.
We expect to complete and put the second phase into operation by the end of 2025.
Currently the company is speeding up the construction progress, strictly complying with the regulations of the host country on labor safety, environmental sanitation, quality assurance, completing according to the set schedule.
Myanmar Center Complex project becomes a typical project in the model of high-end complex model: Trade Center – Office – Hotel – Convention Center – Apartment for rent. This will be a project that will leave a mark of pioneering and large-scale investment of Vietnamese enterprises in Myanmar, bringing sustainable values to customers and the community.