Vietnamese geotechnical contractor Fecon Foundation Engineering and Underground Construction JSChas received a temporary licence from the Ministry of National Planning and Economic Development to establish a joint venture company in Myanmar.
The new JV, Fecon Rainbow Foundation Construction Co Ltd, will be formed between Fecon and local firm Super Rainbow Construction.
Fecon will have 75 percent stake in the firm while the rest will be controlled by Super Rainbow Construction.
Fecon said the new company is set to launch in June 2016 and immediately embark on the first project – foundation works for Thilawa port extension.
The Vietnamese firm said the new JV has been established to “capture the expanding opportunities after the historic election of Myanmar in November” and the establishment of the ASEAN Economic Community (AEC) on December 31.
As a result of the changes, Fecon said it forecasts 2016 to offer opportunities in the fields of infrastructure projects in transport, energy and real estate investment and construction in Myanmar.
Fecon said it aims to expand its business based around the Special Economic Zone in Thilawa, which is next to Fecon’s Thilawa port extension project. The Japanese-backed 2,400-hectares zone is expected to develop the production and manufacturing industries in Myanmar.
Fecon said it expects to encounter potential opportunities when implementing some projects in this industrial zone in the future. The firm is also pursuing the foundation works for some big thermal power plant projects in the south of Myanmar.
With the opening up of Myanmar infrastructure projects are expected to boom in the next two decades.
“Qualified human resources, leading technology in foundation engineering and underground construction field, and the ability to supply overall solutions to help reduce investment cost are Fecon’s strengths that make us confident about the new destination – Myanmar,” Ishiguro Haruo, marketing director of Fecon, said.
From:Myanmar Business Today