ASEAN KEY DESTINATIONS
Vietnam’s Eurowindow to build two factories in Myanmar
The Hanoi-based company Eurowindow, a leading integrated solution provider for doors and façades in Vietnam, which was established in 2002, plans to invest in Myanmar by building its first overseas manufacturing factories.
The company’s CEO said that they aim to spend around US$ 120 million for two factories in Myanmar.
“Myanmar has a lot of potential for the Vietnam market to be expanded,’’ Nguyen Canh Hong, chief executive director and general director of Eurowindow Limited, told media at the official launch of representative office and seminar held in Yangon on 16 March.
The event was attended by Myanmar authorities and the associations of Myanmar architects and construction companies, as well as a wide range of professional architects, contractors, consultants and the media.
On 15 September 2017, Eurowindow received an official license from the Ministry of Planning and Finance to open an office in Myanmar.
“Even if there might be a change of economic policy from the government of Myanmar, it could be a little bit of a concern for us because we think that every government wants the country to be the best, so, with our long term commitment for the investment in this country, we will get the support from whatever government (is in power),’’ he said.
At the meeting with the media, Nguyen Canh Hong explained the company’s future plan of building the two factories.
“Firstly, we will focus on the Myanmar market depending on the growing development here and we will change the habits of local people, so we will plan to have a factory here in the near future probably in 2019 with the investment value of US$ 15-20 million and we will produce doors from this factory for the local market,’’ he said.
“On our trip here, we also talked with Myanmar’s Minister of Industry to build another factory here that would meet the demands of construction materials for the Myanmar market with the investment value of US$ 80-100 million,’’ he added.
According to the CEO, the second factory will be set up after the first factory and it will produce construction materials.
“When we met with the minister of industry of Myanmar, he recommended a few locations for the factories, and now we are considering this,” Nguyen Canh Hong added.
A joint stock company Eurowindow Holding has been offering a wide range of products including PVC doors with reinforced steel core, wooden doors, aluminum doors, aluminum and large glass walls with many unique features.
“Right now, we are using very high standard raw materials from our partner countries such as Europe and other Asian countries and we will also use these materials to produce in Myanmar when the factories will be run here,” the CEO said.
For jobs opportunities, Eurowindow Holding aims to employ over 4,000 workers in their Myanmar factories.
“For the first factory, we plan to offer nearly 1,000 workers and we also target around 700 workers to be appointed for the second factory. At the moment, we plan over 2,000 employees to be set up, but it also depends on the demand. We could employ more than 1,500 workers, and we think it could be over 4,000 workers in total for these two factories,” he said.
Nguyen Canh Hong said every investor wants to be successful when they enter a foreign market. “I believe that with our fifteen years’ experience, strategies and resources, we will be able to be successful in this market because the demands of Myanmar people are very high, so we want to improve the quality of their lives. Therefore, we hope to be able to have a win-win situation in Myanmar and we will supply very good quality products in this market.”
At the seminar, Eurowindow signed the first contract in Myanmar with HTE Integrated (Myanmar) Limited for the supply of wooden door products, aluminum doors and large aluminum glass walls for the Super Hotel project at Thilawa special economic zone in Yangon Region.
Ms. Vo Thi Ngoc Diep, trade counselor at the Vietnamese embassy said, “We highly appreciate that Eurowindow has decided to expand to Myanmar at a time when Myanmar’s construction industry is growing at an average of 30 percent per year.’’
Given the high interest in Vietnam’s investment in Myanmar, Vietnam’s foreign direct investment into Myanmar until 2017 is US$ 1.38 billion with 70 licensed projects, and it placed the second biggest investor in Myanmar after Singapore.
Additionally, Myanmar’s government trade statistics show a rapid growth in the two countries’ bilateral trade from over US$ 494 million in 2016 to over US$ 592 million in 2017-18 fiscal year.
Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below