LAOS (LAO PDR). Thai Medical Glove Co (TMG), a specialist manufacturer of rubber gloves for medical personnel, is forming a joint venture to develop a planned US$500 million duty free business in Laos to serve foreign tourists, according to a well-sourced report in the Bangkok Post.
Look out for our follow-up report on the initiative, coming soon.
TMG Founder & Chairman Boon Vanasin told the media title that the stores will become a magnet for tourists, especially (once permitted to travel abroad) Chinese shoppers travelling from southern China via the high-speed train system.
The report said that TMG is currently setting up the joint venture after recently signing a cooperation agreement with powerful Laos-based conglomerate Dao-Heuang Group (DHG), which runs 17 duty free shops in Laos.
Dao-Heuang Group is the largest importer and retailer of duty free goods in Lao PDR. Its self-run duty free shops stock a wide range of spirits and wines, fragrances and cosmetics and confectionery.
TMG is to make a 70% investment in the new firm, with the remainder funded by DHG, according to the Bangkok Post.
“We plan to spend the US$500 million investment budget renovating existing duty free shops or developing new ones in 2022,” said Boon.
The report said that TMG and DHG plan to jointly run four duty free shops initially. These will be sited at World Trade Centre in the Lao PDR capital of Vientiane; near the Thai-Lao Friendship Bridge linking Nong Khai and Vientiane; near Tha Na Lang railway station; and in Boten Luang Namtha province.
“These areas are connected with the Thai and Chinese borders, so they have the potential to draw tourists, especially those from China, which is expected to reopen its borders to visitors soon,” said Boon.
TMG and DHG also plan to open a large, luxury-focused store in Boten, close to Yunnan province in southwestern China.
DHG President Leuang Litdang told the Bangkok Post that Laos has rich potential for investment because it borders five countries: China, Myanmar, Thailand, Vietnam and Cambodia.
“DHG has joined hands with TMG because we want to form a strong business partnership to increase competitiveness,” she said.
TMG has been granted a 50-year concession by the Lao PDR government to run duty free businesses in the country, the report noted.
About Dao-Heuang Group (DHG)
Established in 1991 by Mrs Leuang Litdang as a small import-export company, DHG is now one of the largest companies in Lao PDR.
The company began by importing French wine and perfume plus alcohol and cigarettes from Singapore. It has since diversified significantly, selling a wide range of household goods and producing coffee, tea, agricultural products and industrial goods. Click here for more details.
