FRIDAY, March 29, 2024
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US businesses keen to invest

US businesses keen to invest

US businesses are enthusiastic about entering Myanmar while US Secretary of Commerce Penny Pritzker has confirmed her visit in early June.

In his speech at the Myanmar Institute of Strategic and International Studies on Tuesday, US Ambassador to Myanmar Derek Mitchell said that nascent promise of change today has deepened the US interest to assist the Southeast Asian country to achieve its potential.
“I cannot count the [number of] Americans who come up to me when I return home to tell me how interested they are in this country and what is happening here,” said the ambassador.
Pritzker will visit the country, after a series of visits by other US officials. 
Mitchell said she will reinforce “this commitment to expand our economic ties and will preside over the formal opening of a US commercial service presence in country, something that will facilitate even greater US investment into this country”.
The ambassador said that the US is actively reviewing Myanmar’s eligibility for GSP (the Generalised System of Preferences), to boost the country’s exports to the world’s largest economy. 
The embassy is working closely with the government on key areas, including workers’ protection, which is a key criterion for GSP eligibility.
“However, the US Congress must reauthorise the GSP programme before we are able to recommend reinstatement of GSP. We hope reauthorisation will happen sometime this summer.”
After US lifted some sanctions, the American Chamber of Commerce Myanmar Chapter was opened last October. The US-Asean Business Council, the US Chamber of Commerce, AmCham Singapore, AmCham Hong Kong, and AmCham Bangkok have all organised repeated business missions to Myanmar. The US Export-Import Bank announced in February that it would provide short- and medium-term loans to assist in financing the export of US goods and services to the country.
“Our Overseas Private Investment Corporation [OPIC] is interested to support US investors entering this country. We hope in the near future to see projects taking place with OPIC’s financial backing – projects that create local jobs and promote exports, a win-win for both our countries,” said the ambassador.
Several American companies are now making their presence felt in the country, including giants Coca-Cola and Pepsi. The US’s APR Energy has put up a fast-track power plant that is providing critically needed electricity for homes and businesses. GE turbines are powering other electricity plants. Chevron/Unocal, along with its joint venture partners, has been increasing the supply of natural gas for power generation.
“And our leading ICT companies – Cisco, Hewlett Packard, Intel, Google, and Microsoft – are applying their extensive expertise in a variety of ways to ensure technology may advance this country’s development,” said Mitchell.
“American companies are investing millions of dollars in microfinance to rural citizens, developing women entrepreneurs, training engineers and managers, offering apprenticeship opportunities to youth, and providing tens of millions of gallons of clean water to those who currently lack access to potable water.”
President Barack Obama recently decided to extend some sanctions for another year. On this issue, Mitchell said that the sanctions target only those individuals and entities that materially benefited from their close ties to the former regime and who are still impeding reform in this country, the so-called “specially designated nationals” or SDNs. 
“Even they are able to have their cases reconsidered if they can demonstrate changed behaviour and support for reform. We hope these individuals and entities can eventually become responsible stakeholders in this country’s ongoing political and economic transition, and bring benefits to the people of Myanmar,” said Mitchell.
The ambassador’s view was echoed by Maung Aung, senior adviser to the Ministry of Commerce.
“The announcement will not have an impact on the current economic momentum. More and more businesses are interested to invest in Myanmar. A lot of high-profile businesses want to be early birds in the country’s rapid transition,” said Maung Aung.
 Richard Harrison, country director at Pact, an American NGO that aims to support grassroots organisations by strengthening their capacity to work effectively in their communities, shared the similar view.
“Myanmar is at an historic crossroad. Governance and the economy are evolving. The development context is changing. This makes for new opportunities and new challenges,” said Harrison.
 
 
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