Myanmar sees foreign investment topping $5 billion in fiscal year 2014-15

RA6XUIE2ACMyanmar has revised its forecast for foreign direct investment (FDI) to more than $5 billion for the fiscal year that began in April, a senior official said on September 16. This surpasses earlier expectations and is the result of new ventures in energy and telecoms.

The figure exceeds an earlier estimate of $4 billion, with investments in the first five months of this fiscal year worth $3.32 billion, said Aung Naing Oo, secretary of the government-run Myanmar Investment Commission (MIC).

That sum was more than half of the annual target set earlier and up 113 per cent over the corresponding period a year prior.

“Considering the rapid growth in the inflow of FDI in the first five months during this fiscal year, we’ve revised our estimates,” he said. “It will be over $5 billion.”

The surge in investment follows a series of political and economic reforms launched three years ago by President Thein Sein, a former general who has overseen Myanmar’s transition from decades of military rule and international isolation.

The suspension of most sanctions by the European Union and the US, in place since the 1990s over the poor human rights record of the former junta, has allowed more investment to flow into a country rich in energy and mining resources and strategically located between India, China and Southeast Asia.

Aung Naing Oo said 31 per cent of the investment received by the end of August was in the telecoms sector, with 23.8 per cent in oil and gas and 18.4 per cent in real estate. Hotels accounted for 13.3 per cent and 8.1 per cent went into manufacturing, primarily garments.

Total FDI stood at $4.11 billion during the fiscal year to March 2014, up sharply from $1.42 billion a year earlier. That compares with $329.6 million in 2009-2010, a year before the new government took office and embarked on reforms.

Despite its business potential, Myanmar still trails neighboring markets in terms of foreign investment this year. Thailand received $6.8 billion in the period from January to June, according to the central bank, while Vietnam recorded $7.9 billion of investment for the first eight months of 2014.

 



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Myanmar has revised its forecast for foreign direct investment (FDI) to more than $5 billion for the fiscal year that began in April, a senior official said on September 16. This surpasses earlier expectations and is the result of new ventures in energy and telecoms. The figure exceeds an earlier estimate of $4 billion, with investments in the first five months of this fiscal year worth $3.32 billion, said Aung Naing Oo, secretary of the government-run Myanmar Investment Commission (MIC). That sum was more than half of the annual target set earlier and up 113 per cent over the corresponding...

RA6XUIE2ACMyanmar has revised its forecast for foreign direct investment (FDI) to more than $5 billion for the fiscal year that began in April, a senior official said on September 16. This surpasses earlier expectations and is the result of new ventures in energy and telecoms.

The figure exceeds an earlier estimate of $4 billion, with investments in the first five months of this fiscal year worth $3.32 billion, said Aung Naing Oo, secretary of the government-run Myanmar Investment Commission (MIC).

That sum was more than half of the annual target set earlier and up 113 per cent over the corresponding period a year prior.

“Considering the rapid growth in the inflow of FDI in the first five months during this fiscal year, we’ve revised our estimates,” he said. “It will be over $5 billion.”

The surge in investment follows a series of political and economic reforms launched three years ago by President Thein Sein, a former general who has overseen Myanmar’s transition from decades of military rule and international isolation.

The suspension of most sanctions by the European Union and the US, in place since the 1990s over the poor human rights record of the former junta, has allowed more investment to flow into a country rich in energy and mining resources and strategically located between India, China and Southeast Asia.

Aung Naing Oo said 31 per cent of the investment received by the end of August was in the telecoms sector, with 23.8 per cent in oil and gas and 18.4 per cent in real estate. Hotels accounted for 13.3 per cent and 8.1 per cent went into manufacturing, primarily garments.

Total FDI stood at $4.11 billion during the fiscal year to March 2014, up sharply from $1.42 billion a year earlier. That compares with $329.6 million in 2009-2010, a year before the new government took office and embarked on reforms.

Despite its business potential, Myanmar still trails neighboring markets in terms of foreign investment this year. Thailand received $6.8 billion in the period from January to June, according to the central bank, while Vietnam recorded $7.9 billion of investment for the first eight months of 2014.

 



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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