Feb 20, 2015

US invests over US$2 million in Myanmar in January 2015

In January 2015, US companies invested over US$2 million in Myanmar, according to the Directorate of Investment and Company Administration (DICA).

Among the 37 countries that received permission to investment in Myanmar through the end of December 2014, 32 still maintain investments in the country.

The US was permitted to invest $243.565 million in Myanmar through December 2014, but it did not enter the list of investing countries until January 2015, when the US invested $2.041 million in Myanmar.

“Western countries usually invest through their subsidiaries in other countries. Since they have to discuss business affairs to invest in Myanmar, it is better for both sides to operate through subsidiaries in Asian countries. Mainly, investment volumes are assigned according to the base country of the investment, and subsidiaries operates the business,” said a DICA official.

The Coca-Cola Co announced that it would invest $200 million in Myanmar cooperation with Pinya Manufacturing Co Ltd. Though it set up a soft drink factory in Myanmar, the investment was carried out through a subsidiary company in Southeast Asia.

Colgate-Palmolive, another American company, was allowed to operate a consumer goods production business as a foreign-investment firm in Shwepyitha Township, Yangon Region, by the Myanmar Investment Commission last year.

Out of 32 countries that directly invest in Myanmar businesses, the US reportedly stands in 29th place.

Source: Eleven Weekly Media