Jan 19, 2017

Viettel to make $2bn mobile investment in Myanmar

Viettel Group, a multinational telecommunications company run by Vietnam's defense ministry, is to invest $2 billion in a joint venture with local partners in Myanmar after securing a 15-year license -- the fourth and final mobile license to be issued in the country of 56 million.

Viettel had earlier sought to sink $1.5 billion into Myanmar National Tele & Communications, doing business under the Mytel brand. In Vietnam's largest overseas investment to date, subsidiary Viettel Global will take a 49% stake, while Myanmar's state-owned Star High will have a 28% interest and 11-company local consortium Myanmar National Telecom Holding will have 23%.

Mytel will provide 3G and 4G smartphone technology to a market where 60% of the population is expected to have mobile phones within a year. The company hopes to have 5 million customers inside two years and to offer coverage to 95% of the population by 2020, with the main focus on rural areas.
The new joint venture will compete with services provided by Norway's Telenor; Qatar's Ooredoo; and Myanma Posts and Telecommunications, which has partnered with Japan's KDDI and Sumitomo Corp.

Myanmar is the most populous foreign market Viettel has tackled so far. It failed to obtain mobile licenses there in 2013 and 2014. Fellow Vietnamese company FPT Telecom is already licensed to provide internet services in the country.

Mytel is reportedly spending $80 million to provide free internet access in some 5,000 public areas, including schools.

"We will build a nationwide modern telecom network in Myanmar and will try to quickly complete this infrastructure," said Le Dang Dung, a vice general director at Viettel. His company has invested $2.4 billion to date in 10 foreign markets in Asia, Africa and the Americas, and has been growing at a 25% annual clip. Viettel's overseas revenue contributed $1.4 billion to its gross revenue of over 256 trillion dong ($11.3 billion) in 2016.

Marking the 10th anniversary in December of his company's expansion overseas, Viettel General Director Nguyen Manh Hung laid out plans for doing business in 20 foreign markets over the next five years and for becoming one of the world's top 20 telecom companies.

Source: NIKKEI Asian Review 

Jan 18, 2017

German Chemical Giant to Open Yangon Factory to Supply Construction Sector

The German chemicals giant BASF will build a factory in Myanmar this year to supply the construction industry’s increasing demand for sophisticated concrete additives.

The new plant, which is still pending official approval, is due to be built in Yangon.

BASF has been selling concrete admixtures and mining chemicals to companies in Myanmar for ten years and has supplied major construction projects including the Thilawa Special Economic Zone, the Yeywa hydropower dam and the Myingyan steel mill.

"As Myanmar's construction industry grows more sophisticated in its scope, which includes high-rise buildings, roadways and bridges, the requirement for high-quality technical and construction solutions will increase," said Christian Mombaur, who runs the company’s construction chemicals unit in Asia.

The company has not disclosed how much it will be investing in its new plant.

Myanmar produces 3.1 million tons of concrete and imports just under 5 million tons to meet growing demand for new buildings and upgrades to dilapidated infrastructure. 

BASF, which opened a service office in Yangon in 2015, generated €70 billion - roughly $72.8 billion - in revenues in the same year. Its construction chemicals unit is active in 50 countries with sales of about €2.3 billion. 

Source: Myanmar Business Today

New Myanmar Companies Act Sent to Parliament

An updated version of the Myanmar Companies Act has been sent to Parliament for approval, a senior official said last week. The new law seeks to overturn the outdated 1914 Burma Companies Act and will bring about much needed regulatory change for companies operating in Myanmar.

A revised draft of the law, approved by cabinet last week, outlines new provisions which aim to bal-ance the opportunities and rights of foreign and local joint venture companies, said U Aung Naing Oo, Director General of the Directorate of Investment and Company Administration (DICA). One such provision changes the ratio of foreign investment that defines a 'foreign company' from one percent, up to more than 35 percent. But, U Aung Naing Oo added, this is changeable based on the recommendations of the Ministry for Planning and Finance, and depending on what is needed for economic development.

“Before the submission to parliament, even a company with a one-percent share owned by a foreign investor is labeled a foreign company. That is major obstacle for the country's development,” said U Aung Naing Oo. The change could help pave the way for foreigners to buy shares on the Yangon Stock Exchange.

Source: Myanmar Business Today

Qatar Airways Adds Flights to Yangon-Doha Route After ‘Strong Demand’

Qatar Airways has added two new weekly flights to its route between Yangon and Doha in response to “strong demand”, the company said.

The high-end airliner re-entered the Myanmar market in 2012, shortly after the country’s econo­my began liberalising.

The extra fights mean Qatar Airways now offer five flights a week from Yangon to Doha and vice versa. The company said in a statement that the new flights increase the routes seat capacity by 67 percent.

“The increase in ser­vices reflects the strong demand we’ve experi­enced on this route since our re-introduction to the Myanmar market in Oc­tober 2012,” said Terence Yu, the airline’s Country Manager for Thailand and Myanmar.

He added that the in­crease “serves to further strengthen commercial and trade links between our two countries”.

Source: Myanmar Business Today

Jan 16, 2017

Company That Moves Myanmar’s Restaurant Systems Into the Cloud to Get $500,000 Injection From Japan

A Japanese internet and cloud computing company is set to make its first venture into Myanmar via an investment in a company that offers mobile management services to restaurants. 

Tokyo-based Globalway Ventures is considering a $500,000 deal with code2LAB that would see it take a 30 percent stake in the company. Globalway has said it plans to invest about $100 million in Asia.
Code2LAB, headquartered in Singapore and founded in 2012, uses cloud storage to help restaurant chains in Myanmar manage their businesses. Their clients include Happy Noodles, Food City at Myanmar Plaza and Osaka Restaurants.

“The investment injection will help advance code2LAB’s product of SmartSales, which helps restaurant owners transform works done manually to ann integrated automated solution,” Min Zeya Phyo, code2LAB’s founder, told Deal Street Asia. “They intend to develop the features, include payment integrations through mobile money providers, banks and payment gateways and expand the marketing around Myanmar.

The company is also planning a new product, said Min Zeya Phyo. DOE Mal can be used on smartphones and enables customers to check reviews of restaurants and access coupons, which they will then be able to display on-screen to staff at the restaurant.

“We are planning to have a soft beta launch in mid-January. It will have limited features, just restaurant listings at first, followed by monthly feature releases,” said Min Zeya Phyo.

The company will officially launch DOE Mal in April and plans to cover the whole of Myanmar by the end of the year.

Source: Myanmar Business Today

Garment Exports Double Spurred by Rising Orders From the EU

Myanmar garment exports have doubled in 2016 compared to export values of the previous year, according to the Ministry of Commerce.
Rising orders from European countries have caused the surge in garment exports, said U Win Myint, Director of Ministry of Commerce.
As of December 15th, garment exports reached $1.05 billion, up from $460 million during same period last year, the ministry’s data showed.
This year, orders from European countries have risen because we have EU’s Generalized System of Preferences (GSP). Last year exports were slightly down because of labour issues,” U Win Myint added.
In 2013, in the wake of reforms by the Thein Sein government, the EU reinstated its Generalised Systems of Preferences (GSP), which gives poor nations favourable trade benefits when dealing with the EU.
Within the EU’s GSP system, Myanmar qualifies for the lowest rung ‘Everything But Arms’ programme, which allows the least developed countries generous duty free access to the European market on everything but arms and ammunition.
Garment factories must comply with international labour rights and environmental standards to be eligible for the programme and while some owners have strived to raise their factories up to these standards, many have been reluctant.
Under the USDP-led government, the garment industry was marred by conflicts between garment factories owners and workers, who clashed over demands for a basic minimum wage and claims of egregious labor rights abuses .
Myanmar garment exports are going well. Six investment proposals were recently approved by the Myanmar Investment Commission (MIC), including five garment businesses from Hong Kong,” said U Aung Naing Oo, Director General of Directorate of Investment and Company Administration (DICA).
While most garments exports went to Japan and the EU, followed by South Korea, the EU might overtake Japan next fiscal year, said Daw Khaing Khaing Nwe, Secretary of Myanmar Garment Entrepreneurs Association.
To gain eaccess to more lucrative markets, Myanmar’s garment industry is trying to shift to the more advanced Free on Board (FOB) assembly system from the low-skilled, labour intensive Cut-Make-Pack (CMP) system employed in most factories. 

Myanmar Summary: 

ယခုႏွစ္အထည္ခ်ဳပ္တင္ပို႔မႈပမာဏသည္ၿပီးခဲ့သည့္ဘ႑ာႏွစ္အလားတူပမာဏထက္ႏွစ္ဆေက်ာ္ပိုမိုတင္ပို႔ႏိုင္ေၾကာင္းစီးပြားေရးႏွင့္ကူးသန္းေရာင္းဝယ္ေရး  ဝန္ႀကီးဌာနမွ  သိရသည္။
အထည္ခ်ဳပ္တင္ပို႔မႈက႑တြင္ဂ်ပန္၊အီးယူႏွင့္ကိုရီးယားႏိုင္ငံ    မ်ားမွအစဥ္လိုက္ရပ္တည္ေနၿပီးလာမည့္ဘ႑ာႏွစ္တြင္အီးယူသို႔တင္ပို႔မႈမွာဂ်ပန္ႏိုင္ငံထက္ေက်ာ္လြန္သြားဖြယ္ရွိသည္ဟုျမန္မာႏိုင္ငံအထည္ခ်ဳပ္လုပ္ငန္းရွင္မ်ားအသင္းမွအတြင္းေရးမွဴးေဒၚခိုင္ခိုင္ႏြယ္ကေျပာသည္။
လက္ရွိတြင္ျပည္တြင္း၏အထည္ခ်ဳပ္တင္ပို႔မႈက႑တြင္လက္ခစားစနစ္ျဖင့္သာအဓိကထားတင္ပို႔ေနရၿပီးကိုယ္တိုင္ခ်ဳပ္လုပ္တင္ပို႔စနစ္သို႔ေရာက္ရွိႏိုင္ရန္အတြက္ရင္းႏွီးျမႇဳပ္ႏွံမႈ၊နည္းပညာမ်ား၊    ကၽြမ္းက်င္လုပ္သားလိုအပ္ခ်က္ရွိေနသည္ဟုစီးပြားေရးႏွင့္ကူးသန္းေရာင္းဝယ္ေရးဝန္ႀကီးဌာနမွၫႊန္ၾကားေရးမွဴးဦးဝင္းျမင့္က

Source: Myanmar Business Today

Jan 14, 2017

Microfinance company looking for Office Assistant

pls email your CV to epetkov@bcfmyanmar.com