RANGOON — Foreign direct investment has dropped significantly in the 2016-2017 fiscal year, according to the government’s most recent figures.
Under the new National League for Democracy government, the foreign direct investment (FDI) volume is down about US$1.4 billion compared to the same period last year, from April to the end of December.
The figures from the Directorate of Investment and Companies Administration (DICA) show that total FDI volume was only US$3.5 billion as opposed to last year’s $4.9 billion for the nine month period.
“This year’s figure is less than before because there were many oil and gas companies that received approval from the Myanmar Investment Commission last year,” said U Than Aung Kyaw, deputy director general of DICA.
According to the figures, US$4.8 billion went to the oil and gas sector of a total $9.4 billion in FDI in the 2015-2016 fiscal year.
U Than Aung Kyaw said most of this year’s investment went to the transportation, communications, and manufacturing sectors.
By the data, $1.6 billion went to the transportation and communications sector, $883 million to the manufacturing sector and $605 million to the power sector from April to December 2016.
The figures show that Singapore is the top investor with a total of $2.6 billion, while China invested $447 million and Hong Kong has invested $187 million.
“We still have many FDI proposals to approve over the next three months so our target of $6 billion could still be reached,” said U Than Aung Kyaw.
U Myat Thin Aung, chairman of the Hlaing Tharyar Industrial Zone in Rangoon said that as long as only garment and other small manufacturers are coming to Burma, the manufacturing sector will not be developed. It needs more heavy industry producers—such as auto manufacturers and other big factories—to come, he added.
“If only garment factories come, we will not reach our target FDI this year,” U Myat Thin Aung said.
