Recent News

MAPCO, CITIC Construction sets up US$500 million agriventure

Myanmar Rice Field

Myanmar Agriventure

23/1/2019 – Myanmar Agribusiness Public Corporation (MAPCO) in collaboration with CITIC Construction, a subsidiary of CITIC Group is investing up to US$500 million into establishing high-end rice mills and agribusiness service centers across the country.

MAPCO and CITIC also have been in discussions to set up a US$100 million rice sector-focused entity – Myanmar China Rice Industry (MCRI) – for building high end-rice mills in areas like Twante township in Yangon region, Nay Pyi Taw or Kyauk Taw in Rakhine state, and Kyeik Latt or Myaung Mya township in the Ayeyarwady region.

“The project will help the border trade,”said Ye Min Aung, the Managing Director of MAPCO. “The establishment of the high-end rice mills will boost both the local and export market and we expect to complete the MCRI project in 2019.”

Besides, the engineering and contracting project is also expected to provide construction jobs for CP Group, a subsidiary of the CITIC Group, as well as other local companies.

“As these two projects involve MAPCO and CITIC Group, they are expected to be up and running by the middle of this year after obtaining approval form the Myanmar Investment,” added Aung.

The two companies also plans to invest in building agribusiness service centers (ASCs) across 33 townships in Myanmar, which will offer services relating to mechanization & provision of fertilizer and agrochemical. The cost is estimated to be around US$400 million.

“We expect to take up to 2020 to implement the agribusiness service centers across the country,” said Aung, adding that on a broader picture, MAPCO would welcome additional shareholders for the project with up to 35 percent stake in the company.

A memorandum of understanding had been signed between the two companies in the late 2017, and currently, feasibility studies are being performed on the rice market, agricultural market and its related businesses.

In implementing the two projects, CITIC Construction and MAPCO are looking into establishing a joint venture, which could lead either company to take a majority stake of 51 percent.

MAPCO will contribute with its existing assets and CITIC with the working capital from China CITIC Bank, said Aung.

“We are targeting to submit a proposal to the Myanmar Investment Commission around the first half of February,” said Aung.

CITIC group is a large construction group in China and is already involved in developing the Kyaukphyu Special Economic Zone project in Rakhine State.

Currently, MAPCO is also discussing establishing a canned fruit factory with Samroiyod Corporation Ltd of Thailand.

MAPCO also has signed an initial agreement with Japan’s Fukuoka Seiyu Co to establish a bran oil factory in Kyaiklat and also make an initial agreement with Navadugra Enterprise Pvt Ltd of India for another bran oil factory establishment in Myaungmya.

“As the company has been focusing on investments since our founding, we have been less focused on profit. Trading and manufacturing will be prioritized this year to bring more profits for the shareholders,” said U Chit Khine.

MVL-Owned Ride-Hailing App Company – TADA Enters Vietnam

Tada-MVL

22/1/2019 – MVL Technology Pte. Ltd (MVL) owned blockchain based ride-hailing app company TADA, meaning “let’s ride” in Korean, has entered the Vietnamese market in less than a week after its Jan 16 service launch in Phnom Penh, Cambodia.

During its earlier launch in Cambodia, the Singapore-based startup has stated that they’re looking at Vietnam and Malaysia as its next Southeast Asian regional expansion. The company aims to combine the Cambodian tuk-tuk drivers into its service by February 2019.

The ride-hailing app operates on the MVL blockchain based ecosystem. The blockchain powered ecosystem connects and provides users with every vehicle-related services including vehicle management, driving, repair and transportation service.

Operating on a blockchain system provides the company with an added layer of security in terms of information storage.

Taking full use of the blockchain ecosystem, TADA has created a reward system for its drivers where they can earn MVL digital tokens by getting consistent positive feedbacks from its riders. The tokens can be traded on any electronic trading platform that accepts it.

Running on a zero commission model, the company’s earning comes from the transaction fees charged on debit and credit cards.

TADA currently boasts a total of 27,000 drivers and 200,000 users in Singapore alone. While in Vietnam, the company claims that 2,000 taxi driver has registered with them so far.

TADA targets to reach 6.6 million app downloads in 2019 on top of an expansion to 15 cities and provinces followed by a greater service coverage across the countries.

MVL targets to launch a wallet app in the first half of 2019, as well as a rent-a-car and chauffeur service platform and data-sharing partnerships with other companies by year-end, the company said in its website.

TADA drivers are free to operate on other ride-hailing services simultaneously. The ride-hailing service was launched with a philosophy in mind, that is giving both its riders and drivers more freedom in choices.

According to Kay Woo, the founder of MVL, “We don’t aim to have an exclusive deal with drivers. It’s not our philosophy. They deserve to have choices,”

The company aims to create its own niche market, as opposed to dominating the whole region.

“We’re not looking to capture the whole market. We can’t do that – there’s a giant that’s already there. What we want to do is bring choice,” Woo said.