Monday, 28 April 2014

Boom times for Myanmar

A robust economy is the main attraction for foreign direct investment (FDI) in Asean and elsewhere in Asia, particularly in Myanmar, where recent economic liberalisation has boosted investment substantially, say international analysts.

The Institute of Security and International Studies projects the Southeast Asian economy is likely to experience 3-5% annual growth into the next decade, director Thitinan Pongsudhirak told the Norway-Asia Business Summit yesterday. The three-day event ending today has been organised by the Thai-Norwegian Chamber of Commerce.

Joseph Zveglich, assistant chief economist at the Asian Development Bank, said the ADB forecasts overall Asian gross domestic (GDP) growth of 6.2% this year and 6.4% next year on the back of the economic recovery in the US, Europe and Japan.

But for Thailand, the ADB estimates GDP growth of 2.9% this year and 4.5% next year if the political conflict is resolved.

Zaw Oo, director of research at the Yangon-based Myanmar Development Resource Institute, said registered FDI in Myanmar over the past three years was equal to the total amount of the previous 25 years.

Competitive advantages of Myanmar include its young population and its location between India and China, the two largest Asian economies, he said, adding that the challenge is to diversify FDI away from natural resources.

"We're trying to promote manufacturing, agriculture and tourism, because these areas provide more benefits to the population," Zaw Oo said.

Ernst Meyer, vice-president and regional manager for for Southeast Asia at DNV-GL Oil and Gas, said Myanmar's energy industry remains in the early stage after the recent liberalisation.

"It will take some time before it yields results, but it looks promising," he said.

The most pressing concern raised at Norway-Asia Business Summit remains corruption. Deunden Nikomborirak, research director at the Thailand Development and Research Institute said some countries were prevented from bidding on large state projects due to their corrupt-practice laws.

source: Bangkok Post
Related Posts Plugin for WordPress, Blogger...