MYANMAR’S manufacturing sector drew over US$3.7 million in April 2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
One enterprise listed from China put a foreign direct investment of $2 million in the manufacturing sector in April.
Myanmar attracted foreign direct investments of $1.64 billion from 87 enterprises last financial year 2022-2023 (April-March). The majority of the investments were brought into the manufacturing sector, drawing $271.8 million from 64 enterprises. The agriculture sector drew $3.5 million from two projects. The power sector received $820.27 million from 11 projects, while one enterprise put $29 million in the real estate sector and five other foreign enterprises made an investment of $504 million in the service sector respectively. The hotels and tourism sector attracted $2.8 million with two projects. The mining sector received $7 million from one project. Additionally, the livestock and fisheries sector attracted one enterprise with over $2 million in investments.
The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community. Manufacturing of fertilizer, cement, iron and steel, value-added foodstuff, electric vehicle and pharmaceutical and medical devices, agriculture and livestock farming and related industries and public transportation services will be prioritized for investment. The commission welcomes both foreign direct investment and domestic investments made by Myanmar citizens in those sectors. Myanmar Investment Commission and the related ministries will also ensure investment facilitation.
Myanmar’s manufacturing sector is largely concentrated in garment and textiles produced on the Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.
There are active 541 factories operated under Myanmar Garment Manufacturers Association. The majority of them are from China, followed by Myanmar and the Republic of Korea.
Myanmar has drawn foreign direct investment of more than $647.127 million from 49 enterprises in the past mini-budget period (October 2021-March 2022). Of them, 40 foreign enterprises put investments in the manufacturing sector, pumping an estimated capital of $202.667 million. — KK