The foreign direct investments keep flowing into the country amid the COVID-19 crisis, and some garment manufacturers eye production of the mask and PPE (Personal Protective Equipment), which are the basic health and safety requirements during the pandemic, said Director-General U Thant Sin Lwin of the Directorate of Investment and Company Administration (DICA).
“The foreign enterprises are steadily entering the country amid the coronavirus. Some investors asked about potential investments. Some factories request to change business from garment production to mask and PPE. At the recent meeting of Myanmar Investment Commission (MIC), they decided to sort out this proposal in a short time. Also, they have responded to those submitting proposals. Those enterprises adapt to changing market conditions due to coronavirus. The mask-wearing culture will keep going for the long term. The production is both for domestic and foreign markets. They have made an inquiry about the quality and price of the masks for the domestic market as well,” he said.
Additionally, the FDI inflow is not affected by the coronavirus pandemic. Maybe they have already prepared for investment from earlier, he added.
“Sixty per cent of enterprises have asked for investments prior to the pandemic. The remaining 40 per cent of businesses come to discuss amid the pandemic. This shows the coronavirus impact has not affected the foreign investment sector yet. MIC is attempting to grant more reliefs,” he added.
The agro-based value-added production enterprises and factories that need large labour force are prioritized, according to the DICA.
Myanmar has attracted FDI of $4.1 billion in the current financial year and it is likely to reach FDI target of $5.8 billion, said Deputy Minister U Bharat Singh of the Ministry of Investment and Foreign Economic Relations at the Webinar held on 29 May, led by AustCham Myanmar.
According to a press statement issued recently by the DICA, 175 foreign enterprises have obtained permits from the MIC and endorsements from regional and state Investment Committees in the current fiscal and brought in the capital of over $3.15 billion.
The FDIs flowing into Myanmar exceeded US$4.18 billion between 1 October and 22 May in the 2019-2020 financial year, including the expansion of capital by existing enterprises and investments of $91.85 million in the Special Economic Zones, according to the Directorate of Investment and Company Administration (DICA). (Translated by Ei Myat Mon)