I’m pleased to read that I’m not the only one believing that Myanmar is about to become the “last frontier” as far as foreign investment is concerned and that the Bangkok Post is reporting today that none less than Tran Bac Ha, chairman of the Bank for Investment and Development of Vietnam (“BIDV”), encouraged his countrymen to pursue investments in other areas of “the last golden destination in Southeast Asia”.
The BIDV Chairman is the first one to follow its own advice and the BIDV itself has opened a representative office in Yangon last year and will seek a permit to open a joint-venture or 100% foreign-owned bank in Myanmar as soon as the country opens its banking sector.
From Paria to Foreign Investor
Vietnam itself a country that was under a US embargo not less than 30 years ago and that has done very well for itself since the embargo has been lifted (who would have imagined 30 years ago that the US and Vietnamese navy would have joint naval exercises a few years down the road) is getting ready to heavily invest in Myanmar.
While most foreign investors are awaiting the sanctions to be lifted to invest and while other foreign investors will cautious even so Vietnamese companies have few qualms about doing business in Myanmar and hope to take advantage of fledgling opportunities.
Current and Future Investment by Vietnamese Companies in Myanmar
Among the investment currently launched the Bangkok post report that last month in Hanoi, authorities announced a US$100-million agricultural processing plant investment by Vietnam’s An Giang Plant Protection, the asset manager VinaCapital, and Eden Group, Myanmar’s largest construction company.
Also thinking big is the Vietnamese property developer Hoang Anh Gia Lai JSC, which has announced a $300-million project to build a shopping, office and residential complex in Yangon.
In the telecommunication sector, state-owned giants Viettel and VNPT are considering seeking licences to operate in Myanmar, which is expected to grant four new telecom licences by the end of this year.
Tran Phuoc Anh, the Vietnamese trade counselor in Myanmar, says Vietnamese enterprises should increase their business dealings with Myanmar or risk losing out to foreign rivals. Mr Anh said foreign investors now could obtain investment licences in only two weeks instead of six months as previously. Tax exemptions offered to foreign businesses are being increase to eight years from five, and land leases are being extended to 50 years from 30.
Vietnam had 15 investment projects worth $514 million in Myanmar at the end of 2011 and it is expected to increase direct investment to $2 billion by 2015.
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Originally posted 2012-04-23 10:52:16. Republished by Blog Post Promoter