More overseas companies set foot in Myanmar

More overseas companies set foot in Myanmar

The DICA said the five countries – Norway, Sweden, Switzerland, Samoa and Sri Lanka – haven’t made any investment before but in this fiscal year, they have invested more than US$82 million.

Samoan investors have made $30.21 million investment in three different businesses followed by a Swiss company with $25 million, a Swedish company with $14.3 million, a Norwegian company with $11.8 million and a company from Sri Lanka with $1.25 million investment.

A total of 26 countries have invested more than $36 billion in the country as of March 2014.Last December foreign investment amount was more than 42 billion from a total of 31 countries.

Among the 37 countries that received permission to investment in Myanmar through the end of December 2014, 32 still maintain investments in the country.

The amount is far behind over $14 billion, the amount having been approved for companies from China. China now tops Myanmar’s list of foreign investors.

Before the sanctions were lifted in 2012, Myanmar had relied heavily on the investment from China and Thailand. European companies have recently made their presence felt.

Meanwhile, there is a sign that US investment will return soon.

According to DICA, a US company actually invested $2.04 million in January.

At the end of January, the US was ranked the 13th on the list of approved foreign investment by country, with the combined investment value of 16 companies worth $245.6 million. However, on the list of existing enterprises, it is ranked the 29th. Only one company was enlisted with the investment value of $2.041 million.

A DICA official said that the US had not been on the list of existing enterprises before because all of the investment was made through US companies’ subsidiaries.

According to the agency, through December 2014, combined indirect investment from US companies amounted to $243.565 million.

“Western countries usually invest through their subsidiaries in other countries. Mainly, investment volumes are assigned according to the base country of the investment, and subsidiaries operates the business,” a DICA official explained.

The Coca-Cola Co’s $200 million investment in a bottling plant, in cooperation with Pinya Manufacturing Co Ltd, was also made through its subsidiary in Southeast Asia.

Colgate-Palmolive, another American company, was allowed to operate a consumer goods production business as a foreign-investment firm in Shwepyitha Township, Yangon Region, by the Myanmar Investment Commission last year.

Publication Date : 23-02-2015

Leave a Reply

Your email address will not be published.