and invest THB 3,500 million in
“LAO DUTY FREE MALL” PROJECT
a high-end duty free shopping center ahead of AEC
(Bangkok: July 15, 2015)—In anticipation of the AEC, Thai investors, represented by Sayam International Co.,Ltd and businessman from the Lao People’s Democratic Republic (Lao P.D.R) jointly set up BM Group Co., Ltd. and invest in the THB 3,500 million tax-free shopping center in LPDR called “LAO DUTY FREE MALL”. This 37,000 square meter center is intended to become a high end shopping center for tourists under the new shopping center of ASEAN concept incorporating world renowned brands and fully integrated services. Annual revenues are projected at THB 3,500 million, and break-even point anticipated within 5 years.
Mr.Sayam Ramasoot, Chairman of Sayam International Co., Ltd. and a founding member of BM Group Co., Ltd., discloses that “Our group has invested in a number of countries in the AEC since 1996, and been one of the very first pioneering groups to invest in Laos. During the past 20 years, we have seen its continuing economic growth brought about by effective economic development plans of the government. In particular, the opening of the Specific Economic Zone together with special privileges for investors, the improvement in infrastructures, and the growing tourism business have created an investment opportunity in retail business—especially in the form of fully integrated tax-free shopping center. As a result, our group and BMM Group Co., Ltd have jointly set up BM Group Co., Ltd utilizing THB 3,500 million for the construction of the “LAO DUTY FREE MALL” in the area of 200 rai at special economic zone near Thai-Lao Friendship Bridge 1. This tax-free 37,000 square meter shopping center will become a high end shopping center for the AEC and foreign tourists under the concept of a new shopping center for ASEAN incorporating world renowned brands and fully integrated services.”
“There are several reasons why we choose special economic zone as the investment site. The site is close to the Thai-Laos Friendship Bridge 1 (Nong Khai Province) whose cross border trade amounts to over THB 100,000 million per annum. It is also close to the juncture of high speed train that provides convenience for investors in terms of transportation of products. In addition, investors are entitled to enjoy a number of business privileges in Lao P.D.R including 100 % ownership for foreigners, one-stop service for business registration and business undertaking license, waiver on business and import taxes, and foreign currency account opening needed for incoming and outgoing transactions as One-Stop Service. Moreover, the LAO DUTY FREE MALL Project also offers a number of promising prospects. It is located in the Specific Economic Zone and conducive to business development in countries within the AEC. It will turn in opportunities in starting new business in a foreign country with infrastructure that supports joint venture investment and tourism. It is expected that this tax-free shopping center will satisfy the demand for goods and services of more than 4 million tourists per year, and generate annual revenues of THB 3,500 million, and reach break-even point within 5 years. Currently, the construction is 70% complete with the eventual opening anticipated in the first quarter of 2016.”
Mr. Phisith Banyadith, President of BMM Group, is a well-known and successful Lao retail businessman from The Lao People’s Democratic. He is the Co-founder of the BM Group, and managing duty free businesses of the LAO DUTY FREE MALL Project. He comments that: “This joint collaboration comprises well diverse businesses together with solid business experience in AEC and expertise in duty free retail business in order to create value for the investors of both sides.”
Mr. Somkit Tantadvanichkul, founder of Think Work Co.,Ltd. and executive of LAO DUTY FREE MALL, adds that: “The project has sellable area of over 20,000 square meters. Its vision is to become “The Shopping Capital of ASEAN” under the concept of Uniqueness, Luxury, and Simplicity. Budget allocated for interior design amounts to THB 800 million. With regard to this project, there will be well over 200 shops, and an average of 20-200 square meters per shop, to serves customers in such product categories as fashion & accessories, luxury brand products, food and beverages, life-style products, beauty and health care, packaged food, souvenirs for tourists, and supermarkets. Moreover, essential facilities will be provided such as sizable parking area for buses, tourist coaches, and private cars of over 300 units, security system, and other services to accommodate customers and tourists of great purchasing power from Laos, Thailand, China, Vietnam, and other parts of the world. Lastly, we have formulated a marketing plan to create awareness among tourists through multiple media channels such as newspapers, TV in Thailand and abroad, social media. We’ll also work closely with tour companies in all regions as well as ASEAN countries, organize activities during our opening and sales promotion campaigns throughout the year.”
Additional Information:
Sayam International Co., Ltd. has made investments in the AEC Group since 1996 in Trading, Logistics, Food & Beverage, IT and Electronics, Insurance, Personal Care, Cosmetics, Beauty and Clinic. Those countries are Cambodia, Laos, Myanmar, Vietnam, and Thailand.
The Government of the LPDR has formulated national economic development plan with a focus on revised investment promotion law, tourism promotion, and direct foreign investment. Investment in the Specific Economic Zone will enjoy a number of privileges—including One-stop Service in company registration, labor management, and other tax privileges covering corporate income tax and VAT in accordance with the nature of investment.
Based on the 2014 information, there were more than 4 million tourists visiting Laos—among them were 2 million tourists from Thailand, followed by Vietnam totaling over 1 million—generating income for the country in excess of THB 20,000 million.
The high speed train project that will connect China, Laos, and Thailand, whose completion is anticipated in the next 5 years, will be an essential supporting factor for the economic development of Laos both in terms of logistics and tourism. It is expected that it will increase the number of tourists from China and Thailand to Laos by as many as 10 million per year. And this high speed train project will become an essential part in terms of logistics transporting products from Laos to Mabtaput and resulting in economic growth for Laos.
