Manufacturing sector absorbs $496 million from 47 foreign enterprises in past five months

Vice President U Henry Van Thio visits a local agricultural farm in Thandaunggyi. Photo: MNA
Vice President U Henry Van Thio visits a local agricultural farm in Thandaunggyi. Photo: MNA
Workers fix parts to Ford vehicle in a factory in East Dagon Myothit, Yangon. Photo: Supplied
Workers fix parts to Ford vehicle in a factory in East Dagon Myothit, Yangon. Photo: Supplied

The manufacturing sector attracts foreign direct investments of US$496.6 million through 47 projects from April to August, according to statistics provided by the Directorate of Investment and Company Administration.
In the past five months, FDIs worth $1.3 billion, including expansion of investments, were brought into the country. MIC has allowed 65 enterprises to invest in the country.
The agriculture sector attracted two foreign investment with a capital of $10.6 million while two projects worth $18.38 million enters livestock and fisheries sector. The real estate sector also received investments worth $195.5 million from three projects. Similarly, the hotels and tourism sector attained FDI of $9.53 million from two project. Over $267.9 million FDIs were pumped into other service sector.
Additionally, the manufacturing sector absorbed the overall foreign investments of US$171 million made in the Thilawa Special Economic Zone (SEZ) between 1 April and 26 July this year. The manufacturing and real estate development sectors are likely to maintain the top position in attracting FDIs during the six-month mini-budget period (from April to September).
Myanmar’s manufacturing sector is largely concentrated in garment and textiles on the Cutting-Making and Packaging basic, which contributes to the country’s GDP to a certain extent. Garment producers are eyeing Myanmar for investment because of the cheap labour, which sometimes causes conflict between the garment factory employer and labourers, according to the market watchers.
There are currently over 400 garment factories in Myanmar, with over 300,000 workers.
The CMP industry has emerged as a very promising one in export sector. The export value of CMP was only $850 million in the 205-206 fiscal year, but export income from CMP industry significantly tripled within two years, with $2.5 billion in the 2017-2018 FY, stated in Myanmar Global Investment Forum 2018 held on 12 September. — GNLM

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