Mar 23, 2015

Vietnam businesses race to enter Myanmar market

In recent years, Vietnamese enterprises have significantly increased their inflow of goods into Myanmar and raced each other to gain a foothold in the market, which is ripe with potential.

VNPT and Viettel, two giant telecommunications service providers, have both taken part in buildings to invest in Myanmar .

FPT Corporation, one of the top 30 Vietnam’s companies in terms of revenue last year, established a subsidiary, FPT Myanmar, in 2013. The group also won a contract to set up a distribution management system (DMS) for Myanmar Mayson Industries Co. Ltd, a major retailer in fast-moving consumer goods.

The regional country is considered a prosperous destination by Vietnam’s retailers and businesses producing fertilizer, processed food, electricity, cosmetics and construction materials.

According to official statistics, trade between the two Southeast Asian countries earned more than 480 million USD in 2014, including 345.86 million USD worth of Vietnamese exports. In the southern hub Ho Chi Minh City alone, the figure hit 77.34 million USD, an annual increase of 4.79 percent.

The start of direct money transfers between the two countries is expected to ease Vietnamese businesses’ concern about payment, according to Pho Nam Phuong, Director of the Ho Chi Minh City Investment and Trade Promotion Centre (ITPC).

However, the quantity of Vietnamese products exported to Myanmar is still limited due to high transportation costs. In additions, Vietnamese commodities, despite being popular with people in Myanmar, have to compete with low-priced goods imported from China and Thailand.

Therefore, Vietnam’s enterprises should focus on long-term investment rather than quick profit, Phuong declared.

Source: VNA