Directorate of Investment and Company Administration (DICA) expects US$3 billion FDI in 2018 transitional fiscal year

Directorate of Investment and Company Administration (DICA) forecasted that $3 billion in foreign direct investments will flow into Myanmar in first six months of this fiscal year, from April 1 to September 30.

DICA is referring to the 2018 transitional fiscal year which is only six months long.

To clarify, 2018 will see the start date for the normal fiscal year period change from April 1 to October 1. The current 2018 fiscal year started on April 1, 2017 and will end on March 31, 2018, and we normally call this 12 month period the FY 2018.

However, there will be a six month transitional fiscal year period, which will start on April 1, 2018 and end on September 30, 2018. So in order to avoid confusion between the two fiscal year periods which both end in 2018, we will refer to this six month period as the 2018 transitional fiscal year.

Then, the new fiscal year period will begin on October 1, 2018, and end on September 30, 2019. 

“We expect up to $6 billion in FDI to come into Myanmar every year until 2020. So, we estimated $3 billion will come in during the first six months of the fiscal year [the 2018 transitional fiscal year],’’ U Than Aung Kyaw, Deputy General Director of DICA said at the press conference held at DICA’s office on January 19.

He added that, “the amount of FDI may be higher than the expected $3 billion.”

As a long term forecast, up to $6 billion in FDI is expected to come into Myanmar from 2016 to 2020. From 2021 to 2025 that number increases to $8 billion of FDI.

More than $8 billion FDI entered Myanmar in FY 2015, $9.4 billion in the FY 2016, and $6.6 billion in FY 2017 came to Myanmar from various sources, with China, Singapore, Thailand, and Hong Kong being the biggest investors.

The Ministry of Commerce said that trade volume from April to September 2017 was $21 billion, and forecasted the trade volume to reach $13 billion in coming 2018 transitional fiscal year period.

(Myanmar Business Today: https://www.mmbiztoday.com/articles/dica-expects-3-billion-fdi-during-2018-transitional-fiscal-year )

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