China - Myanmar's top source of FDI

Foreign companies have so far invested more than $46.71 billion in 12 sectors, including oil and gas, manufacturing, mining, hotels and tourism, transport and logistics, real estate, livestock and fisheries, agriculture, construction and services. 

The energy sector has received the most foreign investment, about 41 per cent of the total, while the construction sector has received the least, according to DICA. 

Thailand is the second largest source of foreign investment, the agency said. 

As of June, 720 foreign businesses had received permission to invest in Myanmar, with 118 of them from Singapore. These investments include 100 per cent foreign owned businesses as well as joint ventures with domestic companies. The foreign companies hail from Asean, East Asia, South Asia, Europe, the Americas and Oceania.

Beijing has five key projects in Myanmar. They are the Letpadaungtaung copper mine, Myitsone dam, Tarpein hydroelectric project, Kyaukphyu-Kunming oil pipeline and the Tagaung nickel mine. 

In the first five months of this year, FDI exceeded US$2 billion with funds from Singapore accounting for $1.9 billion of the total, the Directorate of Investment and Companies Administration said.

Investment from Thailand ranked the second, at $114 million. Investment from mainland China was $51 million, while Hong Kong investment totalled $42 million. Japan, Malaysia and South Korea followed, with $26 million, $24 million and $22 million respectively. Investment from the United Kingdom was $14 million, while investment from Sweden was $14 million. Investment from Brunei and Samoa was $3 million each, while investment from India was $0.9 million.

Economic reforms helped triple FDI into Myanmar to more than US$4.1 billion in the fiscal year that ended on March 31, according to the Myanmar Investment Commission which is in charge of foreign investment.

Since the end of military rule in 2011, foreign interest has jumped as Western countries have lifted or suspended sanctions.

“The total inflow of FDI in the last fiscal year amounted to $4.107 billion, compared with $1.419 billion a year before and $91.17 million 10 years ago in fiscal 2003/04,” Aung Naing Oo, secretary of the MIC, told Reuters.

He forecast more FDI in the present fiscal year, which started on April 1, with plans to make the investment climate even more attractive. Latest data showed that nearly $260 million flowed in in April from 28 companies.

The plans include a single investment law for all investors, combining the Foreign Investment Law passed in 2012 and the Myanmar Citizens Investment Law from last year.