August 20, 2016

FDI CHALLENGES REMAIN — Agriculture, livestock and fisheries fail to attract FDI this fiscal year

A farmer ploughs rain-fed field to grow rice in Tatkon.
A farmer ploughs rain-fed field to grow rice in Tatkon.

MYANMAR did not receive any foreign direct investment in the agriculture, livestock and fisheries sectors as of October in this fiscal year, according to the Directorate of Investment and Company Administration (DICA).
Only $39.66 million in FDI went into the country’s agriculture sector in the last fiscal year, which was up from $20.269 million and $9.650 in the previous years.
Likewise, FDI amounted to only $26.86 million in the livestock & fisheries sector last fiscal year, down from $96 million the year before.
Since 1988, the approved amount of foreign capital in the two sectors has totaled just $700 million.
The statistics show that meager foreign investments were seen in the two sectors throughout the past three fiscal years, while other sectors drew increased FDI inflows, topping $8.01 billion in total in the last fiscal year, up from $4.1 billion in the fiscal year of 2013-14 and $1.4 billion in the fiscal year of 2012-13.
Despite failing to attract foreign investment in the two sectors, Myanmar’s total FDI target was set at $6 billion for the present fiscal year and it received FDI worth US $3.79 billion so far, said DICA.
Myanmar’s oil and gas sector remains among the top five sectors attracting FDI, with a total of $2.05 billion, followed by transport and communications worth $736.71 million, while the manufacturing sector drew $610.07 million and the real estate sector, $232.87 million.
DICA’s Director-General U Aung Naing Oo estimated early this month that there will be influx of foreign investment following the revision of Investment Laws and the outdated Companies Act, with Special Economic Zones launching major operations that will further spur job growth in Myanmar.


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