Apr 20, 2011

Japanese companies ready for Myanmar?

The government-affiliated Japan External Trade Organization (JETRO) says it has received 30 inquiries from businesses about investing in Myanmar since the country's first national elections in 20 years in November 2010.

The inquiries were "remarkable in that no increase had been seen in the past several years in the number of businesses operating here," said an official of JETRO's office in Yangon (Rangoon).

JETRO figures show foreign direct investment in Myanmar jumped to $16 billion (1.3 trillion yen) between April and August 2010, almost matching the overall total between 1988 and 2009.

The heavy investors are from China, Hong Kong, South Korea and Thailand. Their targets include natural resources, such as natural gas and rare metals.

About 50 Japanese companies are operating in Myanmar, the last entering in 2001. They are expanding production in such areas as clothes and footwear as orders increased from businesses trying to disperse the risks from excessive dependence on China.

Source: Asahi