Wednesday 27 February 2013

Japan may top China in foreign investment to Myanmar: UMFCCI

About 50 delegates representing large Japanese firms met Myanmar businesspeople to discuss cooperation in infrastructure development, manufacturing and human resources at a business matching session in Yangon on February 19.


The meeting was held at the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) and was spearheaded by Kyushu Economic Federation. At the end of the business matching session, officials from both organisations signed a Memorandum of Understanding (MoU) to cooperate in business affairs.

Japanese delegates were especially interested in asking what infrastructure projects were priorities, how much is invested in on human resource development and the situation of and small and medium-sized enterprises (SMEs).

“The government has reformed its economic policies, as well as the foreign investment rules and regulations to attract investors [but] we need Japan’s support to industrialise in a short period,” said U Zaw Min Win, UMFCCI vice president.

He added that it’s time for Myanmar’s business community to meet international compatriots to jointly invest in the country’s special economic zones, such as Thilawa (Yangon Region), Kyaukphyu (Rakhine State) and Dawei (Tanintharyi Region) and take advantage of the Foreign Investment Law, which was enacted in late 2012.

Kyushu Economic Federation chairman Shingo Matsuo said the body has already signed MoUs with regional competitors such as China, Indonesia, Thailand and Vietnam. However, he said the federation is interested in being involved in business in Myanmar too.

UMFCCI joint-secretary general U Aye Lwin said Myanmar wants to invite more investors in manufacturing, transport, property development and tourism because the US$2-billion invest in those sectors was dwarfed by the extractives sector (mining, oil and gas and timber), where $19 billion has been invested.

“Our country needs foreign investment in these sectors, and I think Japan is likely to overtake China as our top foreign investor,” he said.

Directorate of Investment and Company Administration figures show Japan’s investment in Myanmar amounted to about $268 million by January 31.

U Aye Lwin also invited Japanese investors to take part in the SME sector, especially in production of food, which accounts for more than 65 percent of the sector.

He added that investors could also build factories outside of the major cities, and suggested that Ayeyarwady, Sagaing and Tanintharyi regions, as well as Kayin State would be ideal, even though they lack quality infrastructure.

U Aye Lwin added that SMEs need assistance.

“We needs support in terms of finance, technology and market reach to boost our manufacturing and SMEs because most of our production is by hand. And I hope that Japan will be able to provide some of that support.”

source: The Myanmar Times
http://www.mmtimes.com/index.php/business/4171-japan-may-top-china-in-foreign-investment-to-myanmar-umfcci.html
                 

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