Investors Grabbing The Chance To Enter Retail Market In Myanmar
Myanmar’s capital city is rising from the ashes because the standard of living is starting to get better and the apartments in Yangon reached a low vacancy rate due to the population which increased significantly. Now the city is facing the high demand for retail spaces. At the beginning of 2018, the government gave permission for foreigners to be able to own retail as well as wholesale businesses in the local market. This July the government also permitted businesses in the industry to have a trade with a maximum of 24 products.
Imyanmar house’s managing director, Ko Nay Min Thu, said that the country’s retail industry is starting to open up to better growth opportunities in comparison to the neighbouring nations. The main reason for this is the limited shopping malls options which cannot cater to the high population.
He added that neighbouring counties like Malaysia, Thailand and Singapore have seen a trend in recreational areas within their shopping malls. The locals who have been to these countries shared that they enjoyed this feature of the shopping malls therefore it is the goal of the investors to open the same facility in Myanmar.
There are different facilities under the retail industry including department stores, shopping malls, supporting retail outlets like stores inside condominium buildings and standalone shops, hypermarkets and supermarkets.
As of writing, only a number of shopping malls can be found around Yangon – City Mall St. John, Junction City, Junction Square and Myanmar Plaza. City Mart Holdings is the operator responsible for most of the supermarkets all over the city.
Looking at the short list, there is a lot opportunities available for investors while Colliers International Myanmar said that many are looking for lot spaces around 50,000 square meters to be used as retail space. Regional cities such as Jakarta, Manila and Bangkok are known to have a number of lifestyle focused shopping malls. This is part of the sector which Myanmar is yet to develop.
There are new developments such as apartments in Yangon but foreign investors are coming to the country because of the opportunities in retail. Interested parties have already expressed their wish to establish a brand in Yangon such as Aeon from Japan and leading supermarket chain operator in Thailand.