Weekly Business News from Myanmar

South Korea is interested in investment opportunities in manufacturing and infrastructure in Myanmar
South Korea is eyeing expansion opportunities in manufacturing and infrastructure in Myanmar. At the Myanmar-Korea Investment Promotion Seminar in Yangon on Thursday, a delegation of 13 South Korean countries met with officials from the Ministry of Transport and Communication and Ministry of Electricity and Energy (MOEE), seeking opportunities to invest in the two sectors. “We selected the most promising South Korean manufacturing and infrastructure companies to explore investment opportunities in Myanmar, where the government is also focused on developing these two sectors,” said Kim Young-sun, Secretary General of the ASEAN-Korea Centre, which promotes economic and socio-cultural cooperation between ASEAN and Korea. The South Koreans are betting on Myanmar’s need to develop better infrastructure as the country strives to achieve its target of 6 percent-9pc GDP growth under its National Comprehensive Development Plan for 2011-30. “Korean companies have the right experience and technological know-how in developing a wide range of infrastructure and they are willing to help Myanmar develop its roads, railways and ports,” Mr Kim said.
Myanmar – Thailand border trade value reached nearly US$ 1.16 billion this fiscal year, between 1 April 2017 and 26 January 2018
The value of border trade between Myanmar and Thailand has reached nearly US$1.16 billion, with the Myawaddy border trade gate accounting for the largest volume of trade, state media reported quoting the Ministry of Commerce. The Myanmar-Thailand border trade totalled $1.16 billion this fiscal year, between 1 April 2017 and 26 January 2018, which included $336 million in exports and $824 million in imports.
Myanmar-Korea Investment Promotion Seminar was held in Yangon to seek business opportunities and improve win-win partnership between the two countries
The joint forces between Myanmar and Korea are now in full swing to scale up Korean’s investment in Myanmar. The 13 Korean companies and organizations led by the Secretary General of the ASEAN-Korea Centre visit Myanmar not only to seek business opportunity but also to improve win-win partnership between the two countries. According to the MIC, Korea stands sixth on the list of foreign investor countries with over 3.5 Billion US$ investment, especially in infrastructure projects, hotel and tourism and manufacturing industry. The Secretary General shared the future potential areas for the investment and highlighted the implementation process of the policy.
Thilawa Special Economic Zone's first rubber production plant started operations on 25 January 2018
Thilawa Special Economic Zone first rubber production plant has kicked off on January 25th and has started operations to produce various kinds of rubber. The plant was built by Southland Myanmar Rubber Co., Ltd in order produce international standard rubber and is the first rubber production plant to produce various kinds of rubber. The plant, Myanmar-Singapore joint venture, will be able to produce up to 100 tons of rubber daily and is expected to produce 2,500 tons of rubbers annually.
ADB’s Trade Finance Program and Yoma Bank signed an agreement to provide guarantees of at least US$ 10 million to support trade, especially SMEs, in Myanmar
The Asian Development Bank’s (ADB) Trade Finance Program (TFP) and Yoma Bank today signed an agreement to provide guarantees of at least $10 million annually to support trade, especially for small and medium-sized enterprises (SMEs), in Myanmar. “We are excited to welcome Yoma Bank as the newest TFP partner," said Janet Hyde, TFP’s Relationship Manager for Myanmar. "We look forward to working with Yoma to develop a strong trade finance franchise for the bank in support of Myanmar’s trade flows, especially for SMEs.” “Yoma Bank is proud to participate in ADB’s Trade Finance Program. Together, we will support and stimulate international trade with Myanmar. With ADB’s support, Yoma Bank looks forward to the continued growth of our trade finance program providing important liquidity to Myanmar’s import and export community,” said Hal Bosher, Special Advisor to the Chairman and CEO of Yoma Bank.
Myanmar Economic Bank will provide loans under a special program for SMEs, which focus on export and have a direct effect on economic development
Myanma Economic Bank (MEB) will provide loans under a special program for SMEs, according to its notice on January 29. The notice said that the bank will prioritize services focusing on export and having a direct effect on economic development, and SMEs what the state and regional governments recommended. The bank will prove up to K300 million loans to any individual or organization working on SMEs with the annual interest rate of 9 percent, with a three to five year repayment. SMEs that receive loans must use 50 percent of loans as fixed capital (fixed assets are such things as land, buildings, vehicles, plant and equipment), and the other 50 percent as working capital, according to the notice.
SCG announced 2017 Operating Results as satisfactory, thanks to the company’s strategy of being promptly adaptable to change in the market and consumer needs
SCG began business in Myanmar more than 20 years ago. They have 340 employees as of Q2/2015 and operate as importers of cement and other building materials. SCG announced the 2017 Operating Results as satisfactory, thanks to the company’s strategy of being promptly adaptable to changes in the market and consumer needs, as it prepares to continue to expand its service business. Despite risks such as costs of raw materials and energy, the strengthening Thai Baht, and regional competition coming this year, the company focuses on a strategy of collaborations with digital startups and equipping employees to be adaptable to change, as well as an expansion of its service and logistics business. This will help SCG to stay competitive. Meanwhile, its investments in ASEAN are progressing according to plan.
Korea backed industrial complex will be built on 550 acres in Hlegu Township, Yangon, and will be partially finished in 2019
A Korea backed industrial complex will be built on 550 acres in Hlegu Township, Yangon. The construction of the complex will start this year and is expected to be partially finished in 2019, according to the Department of Urban and Housings Development under the Ministry of Construction. ‘‘We have signed the agreement for the project on June 16, 2017. Now we are working on the designs, conducting soil experiments and developing infrastructure such as water, electricity and roads. We will finish a portion by 2019,’’ U Win Naing, Deputy Director of the Department of Urban and Housings Development, told Myanmar Business Today.
Japan International Cooperation Agency (JICA) conducted a survey on the implementation of basic infrastructure needs for Dawei SEZ
YANGON- A team led by the Japan International Cooperation Agency (JICA) is making a survey on the implementation of basic infrastructure, such as a deep sea port and electricity supply, in Dawei Special Economic Zone (SEZ), Taninthayi Region. This is according to Dr Tun Naing, Deputy Minister of Electricity and Energy, who is also chairman of Dawei SEZ Management Committee. JICA will be drawing up a report on project development in the SEZ to a June deadline. The Dawei SEZ Management Committee was formed on October12, 2016. It comprises 12 members who are delegates of respective ministries and foreign experts and Dr Tun Naing as chairman. The Thailand-based Italian-Thai Development Company started the SEZ project in 2008. After four years, the company reported financial difficulties and the Myanmar and Thai governments had to intervene. The project was suspended temporarily in November 2013. The two governments signed a MoU in August 2015 for the construction of a two-lane road, water supplies, three power plants, a town plan, a telecommunications centre, a small port and a 27 square-kilometer SEZ.
Directorate of Industry Supervision and Inspection under the Ministry of Industry and a Korean firm, JEONBUK Root Industrial Association (JROOT) signed a MOU in Yangon to promote industrial development
A Korean firm, JEONBUK Root Industrial Association (JROOT), cooperated with Ministry of Industry of Myanmar to promote the industrial development. JROOT signed the MoU with the Directorate of Industry Supervision and Inspection under the Ministry in Yangon on Saturday. According to the MoU, JROOT will provide the technical valuable advice and solutions for the Myanmar Industrial Companies by analyzing and formulating solutions for research and development and industrial barriers. Secretary General, JEONBUK Association for Root Industry, Jeongsu Kweon said “We came to Myanmar in the first month of 2017 to provide support for Myanmar’s industry. That is why we decided to sign the MOU. We want to help the industry of Myanmar improved by offering the equipments and technologies.” JROOT will support the Ministry of Industry till 2021 by sharing their technology and donating the equipments that are in need.