Weekly Business News from Myanmar

The transport and communications sectors topped the foreign direct investments (FDI) line-up over the past four years of incumbent government period
Under the Myanmar Investment Law, transport and communications sector tops the foreign investment line-up over the four years of incumbent government period, bringing in the capital of US$6.135 billion, according to the Directorate of Investment and Company Administration (DICA). The quantum of investment in transport and communications sector is higher than in any other sectors, attracting 29 enterprises. Between the 2016-2017 and 2019-2020 budget years, the manufacturing sector has absorbed FDI of $6.13 billion from 706 projects. Real estate sector has attracted $3.6 billion from 29 projects. The power sector has drawn 19 foreign investment projects worth $3.17 billion. Twenty-four projects worth $725.9 million has been approved in the hotels and tourism sector, while the existing enterprises increased the investments of $363 million in the oil and gas sector. The livestock and fisheries sector has pulled in an investment of $452.68 million from 36 foreign enterprises.
Myanmar Investment Commission (MIC) approved five more investment enterprises which will be created 688 job opportunities
Myanmar Investment Commission (MIC) recently approved five more investment enterprises in the country, local media quoted the Directorate of Investment and Company Administration (DICA) as saying Xinhua reported. The commission approved operation of new enterprises and increasing investment capital amount by the existing enterprises.
Ministry of Commerce increased trade service charges when Myanmar Tradenet 2.0 officially launched on 1 November
The Ministry of Commerce will scale up the trade service fees when Myanmar Tradenet 2.0 will be officially launched on 1 November. To facilitate the National Single Window, have a single entry in trading and digitize the licencing system and related businesses, the Trade Department under the Ministry of Commerce will officially launch Myanmar Tradenet 2.0 portal on 1 November. The first one is to sign up Myanmar Tradenet member, and export/import and related business licences will be carried out digitally.
Yangon Region Tourism Committee endorsed over K 8 billion worth hotel projects which will be created over 1,300 job opportunities
Yangon Region Tourism Committee gave the green light to hotel businesses with an estimated capital of over K8 billion, according to the regional tourism committee’s meeting 6/2020. The regional committee held a videoconference on 27 October and Yangon Region Chief Minister U Phyo Min Thein, in his capacity as chair of regional tourism committee, attended the meeting along with other committee members. The committee has granted licences to two hotels with 75 rooms, and one hotel construction permit, bringing in the capital of K8,215 million. Those hotel businesses are domestic investments to create local job opportunities. As per the regional tourism committee meetings 1/2020 to 6/202, the local tourism committee has issued licences to 22 hotels with 1,570 rooms, four guesthouses, and construction permits to 14 hotels and two guesthouses. Meanwhile, the committee has also given grants to 291 inbound tours. The total capital for hotels and guesthouses is estimated at K89,165 million and US$38.865 million. The endorsed projects have created over 1,300 jobs.
Ministry of Commerce called for the precautions to mitigate the impact on trade of the pandemic in 2020 – 2021 financial year
Even though the country’s trade seems to be mildly impacted by the COVID-19 last fiscal year, the Union Minister of the Ministry of Commerce has called for precautions to mitigate the impact of the pandemic in the 2020-2021 Fiscal Year as there are more possibilities of the impact. “We can assume that there was a mild impact on the trade by the COVID-19, but we need to prepare for 2020-2021 because there are possibilities,” Dr. Than Myint, the Union Minister for the Commerce, said during the Cooperation Meeting held online on October 29.
Myanmar traders suffered loss as China suspended marine products imports through Muse land border
China halted fisheries products imports through Muse land border effective 15 October, causing losses for Myanmar traders, industry sources said. Myanmar traders export the frozen fish and live fish, crab, eel, long-finned eel and other fisheries products to China through Muse land border. During the last financial year ending on September 30, a total of 128,067 tonnes of fisheries products, w3ith a total value of US$170.735 million , were exported through Muse. In the FY2018-2019, the figures stood at $128.429 million with 102,018 tonnes. Therefore, the export value saw an increase of $42.306 million, and the volume was up by over 26,048 tonnes in the past FY. Ribbonfish, Katla, white pomfret, silver pomfret, yellow pike conger, white croaker, soldier croaker, yellow croaker, Ilish, loach, mackerel and pufferfish, and pink, white, Vannamei and Tigers prawn, dried shrimp, squid and salted fish are exported to China. Myanmar’s fish exports to China in June-August dropped. It was attributed to the fights in the Shan State during August and fishing banned season. During the early outbreak of COVID-19, trade flow was steady. During the exemption period of advanced income tax on exports, the export amount increased.
Shan State Government promotes five tourism cities to lure more visitors into the state
The Shan State Government will implement five tourism cities to lure more visitors into the state, according to U Soe Nyunt Lwin, Shan State Minister for Planning and Finance. “Shan State Government will implement five tourism cities in Shan State and the first tourism city will come into existence. During the last four years during our administration, we implemented reforms in Kalaw City,” U Soe Nyunt Lwin wrote on social media. The five cities to become tourism cities are Kalaw City, Nyaung Shwe City, Kyaikton City, Thibaw City, and Lasho City. The state government in collaboration with the union government has developed a tourism master plan tailored for the Shan State aiming to boost the tourism sector during the post-covid times.
Myanmar trade deficit with China estimated at USD $ 1.3 billion in the 11 months of the previous 2019 – 2020 financial year
Myanmar trade deficit in goods with China was estimated at US$1.3 billion in the 11 months of the last financial year (Oct-Aug), the data released by the Ministry of Commerce indicated. The value of Myanmar’s bilateral trade with China in average trade and border trade topped $11.19 billion as of August in the past FY. The MoC reported that imports surpassed exports in trade with China, with exports reaching over $4.9 billion and imports valued at over $6.246 billion. This year, China has been stepping up border control measures to contain the spread of the Covid-19, causing traffic congestion in the border areas of two sides. Next, the value of Myanmar’s bilateral trade with the neighbouring country China through maritime trade and border trade has registered approximately at US$46.247 billion in the incumbent government period, the statistics issued by the Central Statistical Organization under the Ministry of Planning, Finance and Industry indicated. The ministry reported that the imports outperformed the exports in trade with China over the past four years, with exports reaching over $21.363 billion and imports valued at over $24.8 billion.
United States of America (US) has offered in providing technical assistance to boost investments in Myanmar
The United States has offered to provide technical assistance to help boost investments into Myanmar during the meeting between the U.S. International Development Finance Corporation (DFC) and the Ministry of Investments and Foreign Economic Relations. U Thaung Tun, Union Minister of the Ministry of Investments and Foreign Economic Relations, received Mr. Adam Boehler, Chief Executive Officer of the DFC, on October 27. The U.S. delegates said that the U.S. acknowledged the efforts of Myanmar approving international investments into the countries in line with international standards and discussed the possible cooperation in the energy sector, telecommunication sector, tourism sector, and natural gas extraction sector.
Myanmar has seen increased both foreign and local investments in September 2020
Myanmar has seen increased foreign and local investment in September 2020, according to investment data for August and September from Myanmar Investment Commission. In August, the commission approved $40.992 million foreign direct investments while the approved investment in September reached $507.159 million. Looking at the investment by sector, the industrial sector received eight foreign investments in August totaling $40.309 million while September saw 11 foreign investments totaling $212.839 million.