Grab a piece of Myanmar pie, Thais told

Boosted by the government's Bt2.2-trillion infrastructure development project, which will create linkage between the Kingdom and Myanmar, Thai companies should grasp the great opportunity presented by the neighbouring country's new openness to increase their investment there, seminar participants said yesterday.


Food and beverages, rubber products, plastics and packaging, healthcare and hospitals, and education are key sectors in which businesses are urged to invest in Myanmar following its policy to develop the country under a five-year plan through 2015.

At the "Investment in Myanmar: The closet precious treasures" seminar organised by the University of the Thai Chamber of Commerce (UTCC), panellists shared the view that countless opportunities across many industries awaited Thai investors.

The Bt2.2-trillion plan to develop the Kingdom's logistics system and link Thailand with neighbouring countries, in particular Myanmar, will pave the way for more investment and development in the country's western neighbour.

Given Myanmar's policy to promote investment in many areas, Thai investors and interests in Myanmar need to grasp the opportunity from its openness to ensure sustainable growth together, the seminar heard.

Thanavath Phonvichai, director of the UTCC's Economic and Business Forecasting Centre, said Myanmar's economy is expected to grow by 7-10 per cent per annum during the five-year plan.

The country's policy to boost per-capita gross domestic product from the current US$800 (Bt23,500) to $3,000 in 2015 will ensure that the authorities continue to promote inward investment, he said.

"Thai enterprises should take the present opportunity to learn more about Myanmar laws and regulations, so that they can easily invest in the country. Many foreign investors are eyeing investment there, so Thai investors should join the race or they will be left behind," he said.

Thanavath described Myanmar as "a land of future consumption", given its young population and labour costs that are the lowest in Asean.

Nimnual Piewthongngam, executive director of the UTCC's AEC Strategy Centre and Associate Dean for Student Affairs, International College, said the Myanmar government would continue to amend the laws related to economic and business development. It will also stringently enforce those laws.

Such amendments will result in better conditions for foreign investors. However, details of the laws and contracts would still need to be closely monitored, as Thai investors could face some difficulty in investing in certain industries for the longer term, she warned.

Nimnual said Myanmar would focus its investment promotion on business sectors that were concerned about the environment. Another priority will be to promote employment among minority groups.

Businesses highlighted for the promotion of foreign direct investment include food and beverages, rubber products, plastics and packaging, healthcare and hospitals, and education and restaurants. The latter sectors need to be developed to serve the country's tourism industry growth, she added.

Under its investment law, foreign investors would be able to own land for 50 years, with extensions of up to 20 years.

Prajuab Supinee, commercial counsellor at the Thai Trade Office in Yangon, said Thai investors of all sizes should invest in Myanmar.

Thai investment in the country has dropped to second place overall, behind Chinese investment. Combined Thai investment is worth $9.56 billion, while China has pumped $13.9 billion into the country, he said.

Most of the investment to date is in energy, manufacturing, and tourism.