Thai investment in Myanmar slowing down

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Yangon-ShwedagonThailand’s investment in Myanmar has started to lag behind other countries, and is likely to drop from second highest for accumulated value in Myanmar’s direct investment to eighth this year if it keeps investing at the current pace, said Thai Ambassador to Myanmar Pisanu Suvanajata according to the Bangkok Post.

Despite the steadily increasing clip of Thailand’s foreign direct investment (FDI), the growth is considered relatively low compared with that of neighbouring countries, particularly in the past two years, he added.

Thailand remained quite slow with its outbound investment, especially by small and medium-sized ventures, as most FDI came from large firms. Thailand has an edge over rival countries in Myanmar in terms of geography as well as its energy investment in the past decade and is the second-largest investor largely due to natural gas investment by PTT Group.

But now Myanmar has opened up and offering opportunities for investors.

“To be successful in Myanmar, investors need to penetrate the market as soon as possible, find local partners, overcome obstacles and formulate a long-term plan,” Pisanu said.

Myanmar’s growth domestic product index in 2013 was 7.5 per cent, expected to rise to 7.75 per cent, while GDP per capita was $700.

Thailand’s Board of Investment (BoI) plans to encourage medium-sized investors to move quickly investing in Myanmar. Siriporn Nurugsa, the BoI’s executive director for FDI, said the agency’s plan is to implement measures to facilitate Thai medium-sized businesses entering Myanmar. High-potential sectors are real estate, consumer goods and food products.

Siriporn added that Thailand’s accumulated FDI in Myanmar last year was 73 companies worth $10.1 billion or 22 per cent of total investment in that market, ranked the second-largest accumulated FDI behind China, which had 60 firms with a total value of $14.2 billion or 30.8 per cent. Hong Kong is the third-largest approved investor with $6.5 billion or 14.1 per cent.

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Reading Time: 2 minutes

Thailand’s investment in Myanmar has started to lag behind other countries, and is likely to drop from second highest for accumulated value in Myanmar’s direct investment to eighth this year if it keeps investing at the current pace, said Thai Ambassador to Myanmar Pisanu Suvanajata according to the Bangkok Post.

Reading Time: 2 minutes

Yangon-ShwedagonThailand’s investment in Myanmar has started to lag behind other countries, and is likely to drop from second highest for accumulated value in Myanmar’s direct investment to eighth this year if it keeps investing at the current pace, said Thai Ambassador to Myanmar Pisanu Suvanajata according to the Bangkok Post.

Despite the steadily increasing clip of Thailand’s foreign direct investment (FDI), the growth is considered relatively low compared with that of neighbouring countries, particularly in the past two years, he added.

Thailand remained quite slow with its outbound investment, especially by small and medium-sized ventures, as most FDI came from large firms. Thailand has an edge over rival countries in Myanmar in terms of geography as well as its energy investment in the past decade and is the second-largest investor largely due to natural gas investment by PTT Group.

But now Myanmar has opened up and offering opportunities for investors.

“To be successful in Myanmar, investors need to penetrate the market as soon as possible, find local partners, overcome obstacles and formulate a long-term plan,” Pisanu said.

Myanmar’s growth domestic product index in 2013 was 7.5 per cent, expected to rise to 7.75 per cent, while GDP per capita was $700.

Thailand’s Board of Investment (BoI) plans to encourage medium-sized investors to move quickly investing in Myanmar. Siriporn Nurugsa, the BoI’s executive director for FDI, said the agency’s plan is to implement measures to facilitate Thai medium-sized businesses entering Myanmar. High-potential sectors are real estate, consumer goods and food products.

Siriporn added that Thailand’s accumulated FDI in Myanmar last year was 73 companies worth $10.1 billion or 22 per cent of total investment in that market, ranked the second-largest accumulated FDI behind China, which had 60 firms with a total value of $14.2 billion or 30.8 per cent. Hong Kong is the third-largest approved investor with $6.5 billion or 14.1 per cent.

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