According to official statistics, total foreign investment in Myanmar had hit $41.029 billion as of June 2012 since the country opened to such investment in late 1988.
Promotion of FDI
It is also noted that FDI incentives is not the only variable to attract investment. For example, many Japanese investors here in Thailand are not only because of FDI law in Thaialnd and BOI incentives and labor (of course they are important), it is also because they enjoy clustering effect. It is like their components suppliers are also here. So they reduce logistic costs.
Those labor and raw material intensive industries are more likely to invest in Myanmar initially (see our highest FDI figures in mining and oil etc). Can we have BOI incentive packages which can be customized and modified?
If there is huge market demand, and types of product, they might think of investing as well. That also depends on HR in our country as well.
What we are trying to say is that not VERY liberal FDI law in Myanamr will be on more cost than benefit to the country. We need to answer these questions like... Who will come and why they come? What we want them to come? They come but we get very little that we want from them, then the economic cost will be more than benefit.
Myanmar will have received nearly US$7 billion in foreign direct investment (FDI) when its current fiscal year ends on March 31, 2017, surpassing its target of $6 billion. Myanmar has approved FDI inflows of $262.59 million in the Thilawa Special Economic Zone, according to our SEZ Law. In total, we could approve $6.87 billion [Bt240 billion] in 2017.Telecommunications topped the nation’s FDI list, reaching 46.6 per cent of the total inflows, followed by investment in the industrial sector (17.27 per cent) and power generation and distribution (13.76 per cent). Other sectors included real estate (11.31 per cent), hotels and tourism (6.1 per cent), other services (3.5 per cent), and livestock and fisheries (1.46 per cent) (The Nation, 2017).
Myanmar's foreign direct investment (FDI) this financial year (2013-2014) was set to more than double that of last year's to US$3.5 billion. The momentum is unlikely to slow, with the country projecting US$4 billion in FDI in the next financial year (2014-2015). (5 March 2014, Channel News Asia)
Foreign Investment of Permitted Enterprises As of (28/2/2013) - by Sector
|No.||Particulars (by sector)||Permitted Enterprises||Approved Amount||%|
|2||Oil and Gas||115||14,372.27||34.14|
|5||Hotel and Tourism||46||1,364.81||3.24|
|7||Livestock & Fisheries||26||329.96||0.78|
|8||Transport & Communication||16||313.91||0.75|
Source: DICA 2013
Foreign Investment of Permitted Enterprises As of (28/2/2013) - by Country
|No.||Particulars (by country)||Permitted Enterprises||Approved Amount||%|
|4||Republic of Korea||77||2,979.23||7.08|
Source: DICA 2013
- Daw Hla Theingi
- DICA 2013
The Nation, 2017. Myanmar surpasses FDI target of $6 bn in fiscal year 2016-17, Access on 19 March 2017, http://www.nationmultimedia.com/news/business/aec/30309434.