Thai Thonburi hosptial to build 150-bed hospital in Yangon

Thai Thonburi Hospital signed a memorandum of understanding with Myanmar's property group Aung Shwe Thee International (AST Group), for a joint venture to invest in a 150-bed private hospital in that country at the cost of US$ 30 million.

A majority 51% stake in the JV will be owned by Thonburi Hospital, and the rest by the Myanmar partner.

Thonburi Hospital said the agreement was part of a three-year plan to invest more than $150 billion jointly to build private hospitals in three major cities in Myanmar, namely Yangon, Mandalay and Tantabin. The first will be opened in Yangon by the end of next year or at the beginning of 2016.

The group also plans to open 10 small clinics in those 3 cities, of which 5 will be in Yangon, 3 in Mandalay, and 2 in Tantabin.

Boon Vanasin, chairman of Thonburi Hospital Group said Thonburi Hospital Group had seen a good opportunity to invest in joint ventures in Myanmar to cater to increasing demand for medical treatment and other healthcare services, both from local people themselves and foreign investors who began doing business there after the country opened up.

"The hospital business has enjoyed strong potential in Myanmar after the government started to make significant [improvements] in the social-security system so that people with middle to higher incomes will spend money to receive better treatment with the private hospitals. This means the number of private hospitals has not kept up with increasing demand," Boon said.