Top Japanese automobiles eye Myanmar

Toyota, Nissan, Honda and Suzuki disclosed during consultations with the Myanmar Investment Commission. They have decided to do investment in Myanmar through joint venture with top notch Myanmar companies, officials said.

“They are waiting until the Myanmar Foreign Investment Law is enacted,” said advisor to the Ministry of National Planning and Economic Development U Kyaw Dun. 

More foreign business in mining and energy sectors will put their more investment through joint ventures when the law was enacted, he said.

The responsible persons from the Japanese car companies were telling their intention to invest since the beginning of this year. They dispatched representatives to the Myanmar Investment Commission and had discussions. The Myanmar entrepreneurs who accompanied the President during the visit to Japan had talks with the Japanese car companies.

So far, the foreign investment was pouring in only in the natural resources sector, and the input at the manufacturing sector and the industrial sector was rather meager. 

On the other hands, the investors from many countries are eyeing to invest in the country because the economic sanctions against Myanmar by the United State, the EU and Canada have been lifted or suspended, but the actual discussion for possible investment is still thin. 

Service centers of Japanese car companies were already opened in Yangon, but they were functioning just for the name sake, except Suzuki Car Company. 

Suzuki Company established a joint venture with a Myanmar company named SPA and functioned from 1997 to 2010, and succeeded in manufacturing 10,000 units of motor-bikes and 6,000 units of motor vehicles.

At the moment, some foreign companies and Myanmar entrepreneurs have hooked up in doing assortment of businesses. Unconfirmed news were in the air that the Honda Company and the Myanmar Diamond Star Company, and that Suzuki Company and the Myanmar IGE Company were working hands in hands to do business in the country. 

However, when the responsible persons from these companies were communicated for confirmation, it failed to get answers.

The SPA Motors in Myanmar is said to be the winner in acquiring the sole agent to distribute Nissan vehicles and its car accessories. 

Moreover, the Kanbawza Bank Limited in Myanmar is cooperating with the renowned Japanese SMBC Bank in banking technology, and that the Myanmar bank has been authorized to handle the monetary and financial transaction with the car companies that have business deal with the SMBC bank in Japan, according to Vice-Chairman U Than Lwin of the Kanbawza Bank Limited.