ข่าวเศรษฐกิจและธุรกิจประจำสัปดาห์

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  Thailand approved a preferential loan worth 777 million THB under 30 year contract for infrastructure development in Myawaddy city in Myanmar

  The Thai Cabinet has approved a preferential loan worth 777 million THB (over 25.76 million USD) under a 30-year contract for Myanmar for infrastructure development in Myawaddy city, vietnamplus reported. Government deputy spokeswoman Ratchada Thanadirek said the Cabinet meeting on December 24 endorsed a proposal for the Neighbouring Countries Economic Development Cooperation Agency (NEDA) to provide financial assistance for Myanmar to fund the third phase of the Greater Mekong Sub-region development project for Myawaddy.
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  The growth potential in agriculture restricted by poor access to finance, technology, limited infrastructure, complex land tenure and quality issues

  In Myanmar, agriculture contributes to a third of the country’s GDP, a quarter of its exports and creates the bulk of job opportunities. Yet, the sector’s true potential remains restricted by poor access to finance and technology, limited infrastructure, complex land tenure and quality issues as well as weak supply chains. Nevertheless, demand for products of higher and safer quality has been on the rise domestically and the agriculture sector must take advantage of the expertise international companies can offer in this regard, Aung Thu, Union Minister of Agriculture, Livestock and Irrigation, said at the Agrobusiness Forum 2019 organised by EuroCham Myanmar recently. U Aung Thu said Myanmar welcomes international support in adhering to the Good Agricultural Practices and demonstrating that farmers can remain or become even more profitable by improving the quality of their crops.
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  Yangon Region Investment Committee (YRIC) approved Hong Kong and China firms to invest in the region

  Companies from Hong Kong and China are allowed to make investments worth over US$17.47 million in businesses that produce shoes, bags, hand gloves, different kinds of toys and FFC cables for the telecommunication sector under the CMP system, according to Yangon Region Investment Committee (YRIC). The committee approved the endorsement at 20/2019 of the YRIC meeting. Colorado Outdoor Gear (Myanmar) Limited from Hong Kong invested US$1.16 million to produce bags under CMP system in Myaseinyaung Industrial Zone in Hlaing Thayar Township and Sunny Arts & Crafts Company Limited from China invested US$1.2 million worth of investment to produce toys under CMP system in Myaseinyaung Industrial Zone in Hlaing Thayar Township.
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  Myanmar traders are striving for the finalizing a contract with the Public Warehouse Organization in Thailand to export the corn in various grades to Thailand

  Traders are discussing plans for Myanmar to export one million tonnes of corn seeds to Thailand. An agreement between the two countries is expected before year-end, said U Min Khaing, chair of the Myanmar Corn Industrial Association. “We are in the process of finalizing a contract with the Public Warehouse Organization in Thailand to export the corn in various grades,” he said. Discussions began in November and the current corn price is between K460 and K480 per viss.
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  Myanmar Government deployed Navy to fight against illegal trade those are coming into the country through the sea

  Vice President U Myint Swe said that the government will ask the Navy to help in the fight against illegal trade coming into the country through the sea. Illicit trade is undermining both foreign investments and small and medium enterprises in Myanmar, which is ranked 82nd out of 84 countries on the Global Illicit Trade Environment Index 2018. “Since we have not formed a marine task force for fighting illegal trade, we will ask the Navy for help to effectively fight it,” said the vice president at a monthly meeting with local business leaders. “We will focus on the entrance points in Yangon and Ayeyarwady regions.” Since it came into power, the government has formed special task forces in border areas, but these have not been enough to stem the tide of illicit trade. Government efforts have been undermined by the fact that it does not have full control of border areas, some of which are under the control of armed ethnic groups.
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  Emerging Markets Myanmar (EME- Myanmar) has invested in an e-commerce startup for rural retailers

  Emerging Markets Myanmar (EME-Myanmar), a Yangon-based investment firm, has invested in an e-commerce start-up for rural retailers. A six-digit sum was invested but the exact amount was not disclosed. Ezay, founded by former Oway employee Ko Kyaw Min Swe in August, is a start-up which will provide a mobile platform for customers to purchase new stock from wholesalers as well as arrange for delivery of items online. This eliminates the need for retailers to physically travel to shops. “[Restocking] is a real burden and is common across Myanmar; often the husband will go to the wholesaler but must take time off work to do so… we saw an opportunity to address this issue and connect wholesalers and retailers through a mobile platform - providing delivery to make life easier for retailers,” said Ko Kyaw Min Swe, founder of Ezay.
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  Yangon Region Government is planning to upgrade the Sel Ein Tan coastal area to become a tourist destination in Yangon

  The Yangon Region government has announced that it is planning to upgrade the Sel Ein Tan coastal area near Letkhokkon Beach in Kungyangon township to become a tourist destination, the region’s tourism officials say. “Some Yangonites are already going to Sel Ein Tan to escape city life and to to eat sea food. While infrastructure like water and electricity are present in the area, the regional government will do more to improve facilities in the area,” said Yangon Region Tourism Minister Daw Naw Pan Thinzar Myo. The Sel Ein Tan beach area is a two-hour drive from Yangon and, according to tourism officials, some 1,500 local travellers visit every week. The regional government says the next step will be to draw up a master plan for improving the area.
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  Ministry of Commerce (MOC) issued registration cards for 72 trading firms who are providing retail and wholesale services

  The Ministry of Commerce (MOC) recently announced that it has issued registration cards to 72 trading firms providing retail and wholesale services. Thirty-four wholly foreign enterprises from Thailand, Japan, the Netherlands, the US, China, Singapore, Switzerland, Malaysia, Poland, the Republic of Korea, and Germany have been granted registrations, along with 11 domestic businesses owned by Myanmar citizens and 27 joint ventures, according to the ministry. With the recent reforms in the retail sector, domestic retailers said they are seeking a level playing field against foreign players. “Foreign businesses and joint ventures are now allowed to carry out wholesale and retail businesses in Myanmar. This liberalization might affect the market share of local manufacturers,” according to the Myanmar Retailers Association. “At present, domestic retailers are facing difficulties in keeping up with the reforms in the retail and wholesale sector as they do not control the whole supply chain.
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  Yangon Aerodrome Company Limited (YACL) applied the tender for Kawthaung airport upgrade through a Public-Private Partnership (PPP) system

  YANGON-Yangon Aerodrome Company Limited (YACL), company green-lighted to work on the Yangon International Airport, already tendered for upgrading services on Kawthaung Airport. In order to upgrade, the Kawthaung Airport through a public-private partnership (PPP) system, the Request for Proposal had been tendered for the upgrading of three domestic airports to the local and foreign developers, according to the Department of Civil Aviation. ‘We are going to carry out upgrades on the Kawthaung Airport. If there is no private investment, it must be carried out with the assistance from the state budget. However, some private companies are keen on upgrading the Kawthaung Airport. So, we’ve called for tender. The YACL , which was also granted to upgrade the Yangon International Airport, already tendered for upgrading tasks on Kawthaung Airport,” said a high-ranking officer from the Department of Civil Aviation.
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  The large mining enterprises will be granted permission to invest in Myanmar in 2020

  Large mining enterprises will be allowed to invest in the country in 2020, said U Thant Sin Lwin, director-general of the Directorate of Investment and Company Administration (DICA). “The big players from the mining sector remained to be granted permission to invest in the last fiscal. When we grant permission to these mining enterprises, the related ministries need to make sure that they are eco-friendly and do not cause much waste,” he said. “Next year, the mining enterprises will be granted permission to invest in Myanmar. We’ve already said that they must be from the mining sector. Related to this, the ministries concerned are scrutinizing the application process. It has taken more than two months to do so. We have permitted only one giant mining enterprise and it will make large investments involving astronomical figures. So, we are assuming that this sector will develop,” said U Thant Sin Lwin. “Currently, the government is encouraging investments in the electricity sector. So, the Ministry of Electricity and Energy will grant permission to businesses related to natural gas to generate electricity. Nowadays, investments are flowing regularly into the construction and manufacturing sectors,” he added.