Vietnamese enterprises have some advantages in investing in Myanmar due
to the economic situation and reforms in Myanmar that are quite similar to
Vietnam in the past.
Myanmar is currently one of the
most interesting investment destinations in the world and competes with Vietnam
in attracting foreign investors. Moreover, Vietnamese investors are also eager
to exploit Myanmar market.
In the conference “What do you
need to know to invest in Myanmar” held in Ho Chi Minh City last week, many
participants were excited to research Myanmar market and the way to invest in
this emerging market.
However, according to experts at
the conference, Myanmar’s economic situation is quite similar to the beginning
period of Vietnam’s reform procedure previously. As a result, Vietnamese
investors and foreign investors familiar with Vietnamese market could not face
many difficulties to figure out and forecast the market in Myanmar.
Christopher Muessei, partner of
VDBl Loi, a law firm said that the market opening procedure in Myanmar nowadays
nearly shared the same the happening in Vietnam previously.
The Vietnamese investors joined
the conference focus on the issues of opening the bank office, money
transference, potential sectors such as agriculture, telecommunication, insurance…
Among them, money transference was the top problem and paid the investors’
intention.
Myanmar government, currently,
only grants license to foreign banks to open representative office instead of
foreign bank’s branches. BIDV is the very first Vietnam’s bank has
representative office in Myanmar.
AB Bank, another Vietnam -based
bank also expressed its intention to take root in Myanmar.
According to Robert Easson, CEO
of Imagino group, a businessman with 19 years in Myanmar the money transference
in and out Myanmar was quite tough currently. But, there were seven big foreign
corporations preparing for their operation in Myanmar so the money transference
could be easier soon, shared he.
Nguyen Hong Van, general manager
human resources, admin & legal of Vietnam-based Vector Aviation said that
her company inked a Memorandum of Understanding with a local partner to exploit
Myanmar market. As her experience via market research in Myanmar, Myanmar was
similar to Vietnam 15 years ago.
According to experts, like
Vietnam, Myanmar has abundant and cheap labor force with 62 per cent among over
60 million of population in labor age and the salary around $65 per month.
Moreover, Myanmar has plentiful natural resources and potential agriculture
development.
Myanmar and Vietnam aims a target
of trade revenue reach $500 million in 2015.
According to Tran Phuoc Anh,
Vietnamese Counselor in Myanmar, Vietnamese products in Myanmar were still
limited with only sweetie, coffee, food material and cookers, with the payments
made by L/C via Singapore-based UOB Bank.
Vietnam has also implemented oil
& gas exploration, and testing rice cultivation in Myanmar.
According to Vietnam-based Hoa
Sen group, the group has exported plate and steel to Myanmar and set up its
plan to invest a $300 million steel, plate and construction material plant in
Myanmar.
Myanmar’s foreign investment law
is approved by the national assembly and waiting for last ratify by the
president.
However, telecommunication could
be opened 100 per cent to foreign investors while finance, communications,
agriculture, oil & gas could be in list of registration, said Robert
Easson.
Last month, PepsiCo has reached a
distribution agreement to export PepsiCo brand products, which produced by
PepsiCo Vietnam’s operations, in Myanmar.
According to Asean Business
Outlook Survey 2012-2013 conducted by the U.S. Chamber of Commerce and The
American Chamber of Commerce in Singapore, Vietnam has the largest number of
respondents considering exporting to Myanmar.
Hai Long | vir.com.vn
Business & Investment Opportunities
YourVietnamExpert is a division of Saigon Business Corporation Pte Ltd, Incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Healthcare and Life Science with expertise in ASEAN. Since we are currently changing the platform of www.yourvietnamexpert.com, you may contact us at: sbc.pte@gmail.com, provisionally. Many thanks.
No comments:
Post a Comment