Foreign investment inflows increased by more than 40% in the first 10 months of the current fiscal year

Foreign direct investment grows in Myanmar despite the pandemic

photo_camera AFP/SAI AUNG MAIN - Yangon Stock Exchange building

The Myanmar Ministry of Investment and External Economic Relations (MIFER) described as "encouraging" the progress made in foreign direct investment (FDI) inflows during the first 10 months of the current fiscal year, despite the spread of the coronavirus both within the country and around the world since the beginning of 2020.

As reported by The Myanmar Times, the Myanmar Investment Commission (MIC) approved 219 new foreign projects in the country between October 2019 and July 2020, and the total value of FDI in that period amounted to US$5 billion, including capital to expand existing operations in the territory.

This amount represents an increase of over 40% compared to the same months of the previous fiscal year, some $1.5 billion more, but is below the $5.8 billion target set by MIFER for the entire fiscal year, which ends at the end of September.

Most of these FDI initiatives were carried out in the power generation sector, but those aimed at real estate, manufacturing and the oil and gas industry were also relevant. Hong Kong, Singapore, Japan and China were, in that order, the origin of most of the investments made in that period.

Precios de las acciones y el índice que se muestra en una gran pantalla de vídeo en la Bolsa de Valores de Yangón, el 20 de marzo de 2020

The authorities expect, however, interruptions in the pace of new investment arrivals, as the COVID-19 outbreak is likely to affect future decisions by foreign investors.

In this regard, the minister of the Yangon region, Phyo Min Thein, stressed that rapid progress with approved and ongoing projects would help local businesses and serve to create more job opportunities in the area, as new investments could be delayed due to travel restrictions and the halt in activities caused by the pandemic. The territory will thus give priority to three major projects: the Hlegu industrial park, the intelligent ecological city of Yangon Amata and the South Korea-Myanmar industrial complex, which have already received approval from the MIC.

In addition, investments made during this period by the country's citizens amounted to 113 initiatives, mainly in the manufacturing, real estate and services sectors, and involved the disbursement of more than 1.5 trillion kyats, some $950 million, of which some 200 billion kyats, or nearly $130 million, corresponded to capital increases.

More in Economy and business