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August 09, 2020

Yangon Region tops foreign investment pulling in over 600 enterprises

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

By Nyein Nyein

Yangon Region tops foreign investments among the regions and states, attracting more than 600 enterprises over the four years of the incumbent government, according to the Directorate of Investment and Company Administration (DICA). Over the past four years, Yangon Region stood at the first place with 665 foreign enterprises, followed by Bago Region with 76 foreign projects at the second place and Mandalay, with 56 at the third place. Additionally, foreign direct investments also flow into Ayeyawady Region from 27 projects, Mon State from 16, Shan State from 12, Taninthayi from 10, Magway Region and Sagaing Region each from nine, Nay Pyi Taw from eight, Kachin from six, Kayin from five, Rakhine from four, and Kayah from two, the DICA stated. The manufacturing sector has attracted the most foreign investments in Yangon Region, with enterprises engaging in the production of pharmaceuticals, vehicles, container boxes, and garments on a Cutting, Making, and Packing (CMP) basis.
The investments in the regions also flowing into the hotel services, and other services sectors as well. To date, foreign investments from China, Singapore, Japan, Hong Kong, the Republic of Korea, Viet Nam, India, China (Taipei), Malaysia, the British Virgin Islands and Seychelles are arriving in the region.
According to statistics released by the DICA, Yangon Region absorbs 60 per cent of all investments in Myanmar, Mandalay attracts 30 per cent, while the other regions and states receive only a small share of investments. The Myanmar Investment Commission (MIC) and the respective investment committees have granted permits and endorsements to 905 foreign enterprises between 2016-2017 Fiscal Year and as of May-end in the 2019-2020FY, with estimated capitals of US$22.39 billion.
The FDIs flow into the 12 sectors; oil and gas, power, transportation and communication, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other service sectors.
Power sector tops the investment line-up, followed by oil and natural gas in the second place and manufacturing in the third place. Of 51 foreign countries, Singapore put the largest investments, followed by China and Thailand. The MIC is prioritizing the labour-intensive businesses. In the incumbent government period, domestic and foreign projects employ over 500,000 local residents, according to the DICA. (Translated by Ei Myat Mon)

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