The federal government is investing $500,000 to develop a museum in Vancouver's Chinatown.

Canada's small business minister, Mary Ng, who represents the riding of Markham—Thornhill in Ontario, made the announcement on Monday at the Dr. Sun Yat-Sen Classical Chinese Garden in Vancouver.

The museum, called the Chinatown Storytelling Centre, is described as a "new age, immersive museum experience" designed to highlight the Chinese-Canadian immigrant experience and the current living history of Chinatown.

The Vancouver Chinatown Foundation will retrofit a space at 168 East Pender into a 4,000 square foot storytelling centre.

"Every building, every alleyway, storefront and street sign has untold stories about the history of Vancouver's Chinatown," said Ng.

"Until now, these stories have never really had a permanent home to showcase and honour the richness of this neighborhood and the important contributions of Chinese Canadians."

The project is one of 46 cultural infrastructure projects that the federal government is investing a combined $4.4 million into across the province as part of if its cultural spaces fund.