Yangon—Myanmar is likely to fall short of its foreign investment target in the 2018-19 fiscal year, according to U Thant Sin Lwin, director of the Myanmar Investment Commission (MIC).
Myanmar has so far only received US$4.1 billion (6.29 trillion kyats) of inbound foreign investment in the current fiscal year, which ends on Sept. 30.
“We still need US$1.7 billion to meet our target,” said U Thant Sin Lwin.
Some foreign investors have inquired about the potential to invest in the infrastructure, electricity and energy sectors, which require substantial investment. Discussions are ongoing and the potential investment in the next two weeks will not make up for the current deficit, added U Thant Sin Lwin.
The Japanese-backed Thilawa Special Economic Zone in Yangon Region has attracted US$223.68 million in foreign investment this fiscal year.
According to the Directorate of Investment and Company Administration, foreign investment went to the manufacturing, electricity and energy, livestock, agriculture, property development and service industries, creating jobs for more than 89,000 Myanmar citizens and over 1,900 foreigners.
Meanwhile, Myanmar’s businesses have invested almost 1.4 trillion kyats (US$912 million) plus US$425 million in 152 businesses in the current fiscal year.
According to the Union of Myanmar Federation of Chambers of Commerce and Industry president, U Zaw Min Win, China has proposed establishing joint China-Myanmar industrial zones.
The MIC said permission for investment was granted based on the business’s compliance with existing laws, economic viability, job creation, contribution to national income generation and tax revenues, innovation and technology transfer, social and environmental impacts and other factors.
Myanmar received around US$2 billion in foreign investment in its six-month mini-budget in 2018 during its transition to the new fiscal year.