More than 3,000 companies registered under foreign investment law

A total of 3,032 foreign-based companies and more than 70 joint ventures have registered to open offices and to operate 720 projects under the foreign investment as of June, according to the Directorate of Investment and Company Administration.

"The investment commission gave approval to mostly garment factories, shoe factories and other manufacturing businesses. This will create employment opportunities for the citizens. On the other hand, labour rights should be ensured. It is bad if foreign investors could not ensure labour rights after getting approval for investment," said an executive from the Union of Myanmar Federation of Chambers of Commerce and Industry.

Singapore tops FDI list

Foreign investment exceeded US$2 billion in the first five months of the year, with funds from Singapore accounting for $1.9 billion of the total, the Directorate of Investment and Companies Administration said.

Investment from Thailand ranked second, at $114 million. Investment from mainland China was $51 million, while Hong Kong investment totaled $42 million. Japan, Malaysia and South Korea followed, with $26 million, $24 million and $22 million respectively. 

Investment from the United Kingdom was $14 million, while investment from Sweden was $14 million. Investment from Brunei and Samoa was $3 million each, while investment from India was $0.9 million.

Strengthening bilateral trade ties with Myanmar

The National Chamber of Commerce of Sri Lanka will hold a presentation/discussion on “Bilateral Trade between Sri Lanka and Myanmar” with the participation of the Ambassador of Myanmar Min Thein Zan as the Special Guest Speaker on Thursday June 19, 2014 from 3.00 p.m. to 4.30 p.m. at the Chamber Auditorium, 450, D R Wijewardene Mawatha,
Colombo 10.

The Ambassador will be assisted by Charge d’affairs Aung Soe Moe. They will speak on the current business trend, trade potential, opportunities for export, import, investment and other services available for Sri Lankans in Myanmar. The participants will also get an opportunity for discussion and interaction with the Ambassador and the officials of the Embassy at the session.

78 more foreign-invested firms arrive this year

Singapore, Japan and South Korea continue to be the top sources of foreign investment in Myanmar this year, with companies from the three Asian Tigers leading the way among the 78 foreign invested firms given permission to invest in Myanmar in the fist five months of this year.

Companies from Hong Kong, Thailand, Indonesia, China, Malaysia, Taiwan, Sweden, India, Brunei and Laos followed suit.

Two types of foreign investments were allowed: 100 per cent foreign-invested firms and joint ventures with local partners.

Gap Is Starting To Make Clothes In Myanmar, Where Workers Are Horribly Mistreated

Gap is proudly touting its plans to start making clothes in Myanmar. One executive even called it a "historic moment" for the beleaguered Southeast Asian country. The retail giant will be the first American apparel maker to have clothes made in the country since U.S. sanctions were lifted two years ago.

But human rights advocates say, "Not so fast." Myanmar has a miserable track record when it comes to workers, who are frequently underpaid and horribly mistreated. Gap simply wants to get its clothes produced as cheaply as possible, the advocates argue, and it's dressing up the move as global philanthropy.

Gap’s entry to Burma could bring more good tidings, MGMA says

Gap’s entry into Burma could attract more foreign buyers into the fledgling garment industry, thus improving work conditions and increasing employment for workers, the chairman of Myanmar Garment Manufacturers Association (MGMA) said on Monday.

Retail giant Gap Inc announced on Saturday that they have started sourcing products from two South Korean-owned factories in Rangoon, making them the first US company to enter the garment sector since trade sanctions were eased in 2012.

With its experience in other countries, MGMA chairman Myint Soe said that Gap’s presence is a “good opportunity” for improving workers’ rights while increasing productivity.

GAP INC. ANNOUNCES PARTNERSHIP WITH USAID TO SUPPORT WOMEN IN BURMA

As first American retailer in Burma, Gap Inc. invests in women's advancement program

[Rangoon, Burma] - [June 7, 2014] - Today at a signing ceremony attended by U.S. Ambassador to Burma, Derek J. Mitchell, and U.S. Agency for International Development (USAID)/Burma Mission Director, Chris Milligan, Gap Inc. (NYSE: GPS) announced that the company is partnering with USAID to invest in the social and economic growth of Burma. By producing its products from two factories in Rangoon, Gap Inc. becomes the first American retailer to enter the Burma market. The company's partnership with USAID will help lay the foundation for Gap Inc. to provide growth and economic opportunities for women in the country.

Myanmar, S. Korea step up economic cooperation

YANGON, June 6 (Xinhua) -- Myanmar and South Korea are stepping up economic cooperation, as part of which the two countries have signed an agreement on bilateral investment promotion and protection.

The signing took place Thursday in capital Nay Pyi Taw on the occasion of S. Korean Foreign Minister Yun Byung-se's official visit to Myanmar.

During his visit, Yun exchanged views with his Myanmar counterpart U Wunna Maung Lwin on promoting bilateral relations and cooperation.

Myanmar President U Thein Sein and Speaker of the Parliament and the Lower House U Shwe Mann also met Yun separately and held talks on bilateral trade and investment, as well as technical and financial aid for the development of Myanmar, especially the development of its agricultural and rural sectors.

Vietnamese investors’ rising interest in Myanmar

More than 50 business groups from Vietnam have been conducting market research in Myanmar in order to look for investment opportunities, said Pho Nam Phuang, director of Investment and Trade Promotion Centre, on Friday.

The research is being conducted at shopping malls and supermarkets in Yangon and Mandalay, she said in the press conference at Union of Myanmar Federation of Chamber of Commerce and Industry.

“The research will cover customer’s habits and obstacles to Vietnamese companies operating in Myanmar. The results would be submitted on relevant ministries in coordination with UMFCCI," said Myo Thant, joint secretary general of UMFCCI.

Gap to Be 1st US Retailer to Enter Myanmar Market

Gap Inc. has announced plans to produce clothing in Myanmar, the first American retailer to enter the market since the Southeast Asian country began its transition to democracy three years ago.

Two factories in the commercial capital, Yangon, are reportedly producing vests and jackets for the company's Old Navy and Banana Republic brands. They will be ready for sale in the U.S. by this summer, according to a statement released Saturday by the U.S. Embassy.

While Asian nations have long had a strong presence in Myanmar, it's only in the last few years that companies from North America and Europe have started returning, thanks to the easing of sanctions imposed on the country during its half-century of military rule.

Garment sector sees more investment

Six foreign invested and three local invested firms were given the green light to invest at the first meeting of newly-reorganised Myanmar Investment Commission on May 31.

The meeting was held at Yangon Region branch with 43 items on the agenda, including investment proposals.

The companies receiving approval included garment makers, surgical-equipment producers and a petroleum distributor. They were from Hong Kong, Thailand, Indonesia, Korea and China.

Burma Factories Warn of Rise in Strikes Fueled by Activists

RANGOON — Representatives of Burma’s garment-makers say that prominent former political prisoners are getting involved in labor disputes, and warn that more strikes are likely in the run up to national elections slated for late 2015.

Kazuto Yamazaki, Deputy Managing Director of Famoso Clothing Co., Ltd, a garment factory located in northern Rangoon and employing 1,200 workers, said that many of the city’s strikes “are initiated by political groups.”

Yamazaki said that members of the 88 Generation Peace and Open Society, a prominent group of former student dissidents and political prisoners, participated in an arbitration meeting chaired by the Ministry of Labor, Employment and Social Security, after workers at Famoso went on strike last year in pursuit of a wage increase.

Burma Faces Foreign Investment Competition From Cambodia, Laos

Burma, Cambodia and Laos are the potential “hidden markets” of Southeast Asia for investment opportunities, a business study said, but they could end up competing against one another.

Burma and Cambodia are both developing tourism and textile manufacturing industries which could see competition for foreign investment.

In Burma’s case, “it’s very important that the government is able to maintain its reform momentum” in order to achieve the “vast economic potential,” said the study by Business Monitor International (BMI) which identified textiles, tourism and financial services among promising areas for investors.

Trade on the rise along Myanmar's busy borders

Thailand will remain the second largest trading partner of Myanmar for the foreseeable future as cheaper goods from top-ranked China continue to make inroads into Asean’s last frontier economy.

Trade between Myanmar and Thailand was worth $5.57 billion, about 22% of all international trade worth $24.86 billion, during the fiscal year that ended in March 2014, according to the Ministry of Commerce in Myanmar.

Myanmar has a huge trade surplus with Thailand because oil and gas account for a large share of its $4.2 billion in exports, while imports from Thailand into Myanmar were worth $1.36 billion.

MIC approves five new businesses

Myanmar Investment Commission (MIC) has recently given the green light for five business ventures, including 2 foreign investment projects.

The authorities gave the green light at a scheduled meeting in Nay Pyi Taw on April 26.

Two foreign companies_ a clothing firm from Hong Kong and a Korean garment factory_ were allowed to start their respective operations in Mingaladon and South Dagon townships, Yangon.

Garment sector to hit $1.5b revenue mark

Revenues in the garment sector are expected to grow by as much as 50 percent for the 2013-14 fiscal year and reach US$1.5 billion, experts said.

Daw Khaing Khaing Nwe, secretary of the Myanmar Garment Manufacturers’ Association, told The Myanmar Times that the sector has continued to benefit from relaxed trade rules from abroad, while the country has seen a distinct uptick in foreign interest in the sector.

“After we officially got GSP [Generalised System of Preferences] status from the EU in mid-2013, exports began to substantially increase,’’ she said.

Burma seeks minimum wage amidst labour shortage

As foreign investors in the garment sector trickle into Myanmar/Burma, local research companies and the International Labour Organization (ILO) are undertaking a study that could prompt the country's parliament to pass a minimum wage law by December this year.

The study, for which one local participant is the Myanmar Marketing and Research Development Co (MMRD), will look at how local factories are struggling to cope with a labour shortage, partly attributed to low available salaries.

Hong Kong textile manufacturers shift production to Myanmar for cheap labour

Hong Kong textile manufacturers have signed a deal to set up their first industrial park in Yangon, which they expect will slash production costs by at least half.

Workers at the 200-hectare facility in the former capital of Myanmar will be paid about a fifth of those employed in mainland factories.

Liberal Party lawmaker Felix Chung Kwok-pan, representing the textiles and garment constituency, made the deal on behalf of 12 manufacturers to rent half of the 400-hectare Thilawa Special Economic Zone, co-built by Myanmar and Japan.

Garment industry to increase foreign investment

YANGON - The Myanmar Garment Manufacturers Association (MGMA) expects the garment industry to gain US$ 1.5 billion in foreign investment by 2015 if political reforms continue.
Enterprises that deal in cutting, making and packing are creating job opportunities as foreign investment grows in the garment sector. Garment exports made record earnings with US$ 1.1 billion in the period from January to December last year.

“The garment enterprises are now increasing due to EU’s Generalised System of Preferences (GSP) system,” said Myint Soe, chairman for MGMA.

Put-Off by Rangoon’s Flaws, Garment Makers Look to Pegu

RANGOON — Investors in Burma’s garment sector are looking to areas outside of the commercial capital Rangoon, where the high price of land and a scarce labor pool are sending businesses elsewhere, according to Aung Win, deputy chairman of the Myanmar Garment Manufacturers Association.

Soaring land prices in Rangoon have driven new investment in garment-making ventures out to Pegu, Irrawaddy and Mandalay divisions, he said.