Myanmar intends to attract US$6 billion in Foreign Direct Investment (FDI) in financial 2017-2018, according to U San Myint, the Deputy Director-General of Directorate of Investment and Company Administration (DICA), according to his public statements before the Myanmar Investment Commission on 11 July.
“Myanmar has already received nearly half of the FDI target during 4 months”, he said. “FDI will meet or even exceed the target in this financial year”.
Myanmar Investment Commission (MIC) registered 93 foreign investment projects estimated at $3 billion investments this financial year. Meanwhile, Myanmar has approved foreign investment of $127 million in Thilawa Special Economic Zone. In total, Myanmar is on track to approve $3.1 billion this year.
Singapore topped the foreign investors line with $1 billion, followed by China and the Netherlands, said U San Myint.
Myanmar, this financial year, has permitted 54 foreign investments under the 2012 Foreign Direct Investment law and 39 under the 2016 Foreign Direct Investment law. The industrial sector attracted the majority of foreign investments.
“Foreign investments are important for technological transfer as well as building of the infrastructure. Myanmar needs to produce skilled workers”, said U San Myint.
“Many international companies are interested to invest in Myanmar, but they have to be practical”, said U Ye Min Aung, the vice chairman of Union of Myanmar Federation of Chamber of Commerce and Industry (UMFCCI). “Investors need reliable access to electricity, good transportation systems and affordable land prices before they invest. Land prices in Myanmar industrial zones are much higher than those in the other countries. Therefore, the investors do not invest as expected”.
MIC is prioritizing 10 sectors of local and foreign investment including agriculture, livestock breeding, export promotion manufacturing industry, import substituting industries, electric power supply, transportation, education service, health service, constructing low-cost housing and constructing the industry zones.
May Thet Hnin