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July 09, 2020

Manufacturing sector pulls over 120 foreign enterprises in Oct-Apr

A file photo shows workers seen on a production line at a garment factory in Hlinethaya.  Photo: Phoe Khwar
A file photo shows workers seen on a production line at a garment factory in Hlinethaya. Photo: Phoe Khwar

Majority of foreign enterprises primarily invest in the manufacturing sector in the seven months of the current financial year 2019-2020, the Directorate of Investment and Company Administration (DICA) stated.
Of 162 foreign enterprises permitted and endorsed by Myanmar Investment Commission and the respective investment committees between 1 October and April-end of current fiscal, 126 enterprises pumped FDI into the manufacturing sector. Other service sector stood at the second by attracting 14 businesses, while power and real estate sectors got the third spot with six projects respectively.
During a-year ago period, 115 of 150 enterprises put investment into the manufacturing sector, while other service sector drew 13, and livestock and fisheries attained investments from seven businesses.
In the current fiscal year, the power sector has topped $1.026 billion and the manufacturing sector has absorbed FDI of $544.8 million. The livestock and fisheries sector has drawn foreign investments of $22.36 million, and over $254.45 million has been pumped into the transport and communications sector, while the hotels and tourism sector has pulled in investments of $33.6 million.
The real estate sector has also reported investments of $895 million. Over $205 million in FDI has been pumped into the other services sector.
The current coronavirus consequences have not affected the foreign investment sector, said DICA Director-General U Thant Sin Lwin on 7 April.
The proposals submitted to MIC include CMP businesses. At present, such kind of labour-intensive enterprises is facing financial hardship, disputes between the employers and employees and the closure of factories. However, those cases in the industry did not hinder new investors.
The manufacturing enterprises and businesses that need large labour force are prioritized. MIC is endeavouring to clear those kinds of projects so fast that they can start running in the post-coronavirus period, he continued.
Moreover, MIC showed readiness to accept the projects regarding the production of mask, pharmaceuticals and medical equipment, in responding to the activities of prevention, control and treatment of coronavirus disease.
Myanmar has attracted foreign direct investment of more than US$3.355 billion between 1 October and April-end in the 2019-2020 financial year, including the expansion of capital by existing enterprises, DICA stated.
The total figure includes investments of $91.85 million in the Special Economic Zones, under the Special Economic Zone Law.
According to a press statement issued recently by the DICA, 162 foreign enterprises have obtained permits from the MIC and endorsements from regional and state Investment Committees in the current fiscal and brought in the capital of over $2.419 billion. Myanmar has set an FDI target of $5.8 billion in the current fiscal. —GNLM
(Translated by Ei Myat Mon)

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