CNI News
3 Jan 2023
To attract foreign direct investment to Myanmar, the government is required to make accurate and convincing guarantees over the investment process, economic observers and entrepreneurs told the CNI.
FDI to Myanmar has been hampered by uncertainties of investment policies and weakness in the law.
As foreign companies invest their money in another country by studying the performance of its leadership, FDI mainly depends on them, Entrepreneur U Aung Pyae Sone told the CNI.
He said, "As far as we are concerned, the government has failed to make convincing guarantees to attract foreign investors. The government is required to explain the profits and protection for foreign investors in Myanmar and the accuracy of the foreign investment law. The government has been taking such measures but it still needs to do so more clearly. Another factor is that FDI mainly depends on the leadership of the government. Before a foreign company invests its money in another country, it studies the performance of itsleadership to decide whether the government pursues economic growth or religious faiths or military strength."
Directorate of Investment and Company Administration.
Even in a communist country like China, the leadership pursues economic growth and a large number of investors have scrambled into the second largest economy, he pointed out.
He said, "China is a communist country but it pursues economic growth. So, foreign investors scrambled into the country. Thailand attracts foreign investment through various ways and means. It offers opportunities for foreigners who buy condominium apartments in their country. They have promoted foreign investment in such ways. In our country, even existing foreign investors are hesitant to expand their operations, let alone attracting new foreign investors. So, there are many difficulties for foreigners whose languages, nationalities and natures are different from us. I just want to say that FDI depends mainly on leadership."
Entrepreneurs pointed out that it is necessary to effectively combat favouritism and corruption to attract FDI into Myanmar.
Land and labour have been available in Myanmar.
The Myanmar Investment Commission.
Moreover, foreign investors are hesitant to invest in Myanmar due to the political crisis and thus they will invest in Myanmar only after an elected civilion government takes office after the elections, economist and banking expert U Thet Zaw told the CNI.
He said, "FDI has been hampered by the political crisis. So, they are trying to hold the elections as soon as possible. After an elected government takes office, they will invest in Myanmar. I know much about Japanese and Chinese investors. They are waiting."
Moreover, five or ten or 15 years' tax exemption should be offered to investors in Dawei and Kyaukphyu SEZ in the same way as those in Thilawa SEZ are offered 5 years' tax exemption to attract foreign investments, according to entrepreneurs.
Entrepreneurs said priority should be given to garment and value added product industries which can create a large number of job opportunities, economists said.
