Eight Chinese enterprises put $93.4 mln of FDI into Myanmar in past three months

Eight China-listed enterprises brought in US$93.4 million into Myanmar between October and December 2021 of the six-month mini-budget period, according to data released by the Directorate of Investment and Company Administration (DICA).

China is the top source of FDI so far and Singapore is placed as the second-largest investor of Myanmar. Those enterprises listed from China, Singapore, India, Republic of Korea, France, Hong Kong (SAR) and China (Taipei) also made investments this year. Chinese companies primarily invested in the manufacturing sector.

Myanmar has drawn foreign direct investment of more than US$2.46 billion during the October-December period, including expansion of capital by existing enterprises and investments in the Thilawa Special Economic Zone, DICA’s statistics indicated. Of 17 foreign enterprises permitted and endorsed by MIC and the respective investment committees in the half of the mini- budget period, 11 enterprises pumped FDI into the manufacturing sector. Agriculture, power, construction, hotels and tourism received each project and other service sectors attracted two projects.

Source: The Global New Light of Myanmar


Direct Yuan-Kyat trade assures traders in Muse border

The use of Yuan or Kyat in the bilateral transaction is officially allowed in the border areas between Myanmar and China, and traders can legally open a foreign currency account at the designated banks, ensuring trade finance security for the traders engaged in Muse cross-border trade with China, said U Min Thein, vice-chair of the Muse Rice Wholesale Centre. “China often freezes accounts of Myanmar traders, supposedly linked to illegal activities. The traders suffered from it. If they lift the freeze, payment is made in full.

If not, traders cannot help. Now, the bank accounts can be legally opened and cannot be frozen as it is white money. It will definitely facilitate transaction in import and export,” he elaborated. The direct Yuan-Kyat trade platform commenced on 12 January 2022. Traders can open foreign currency accounts linked to Bank in China, CBC and BOC, by depositing 30 Yuan (which is equivalent to K10,000) at Myanmar Economic Bank in Muse. “Some traders might face challenges to do so as they used to make payments through private banks.

There might be red tape in opening accounts. However, this platform will assure the traders in the long term,” U Min Thein shared his opinion. This move is aimed to boost bilateral cross-border trade, facilitate trading and bilateral transaction, increase the use of domestic currency and lessen the reliance on the US dollar. The direct Yuan-Kyat payment has no impact on the domestic freight forwarding, a Mandalay-Muse freight forwarder. China shut down all the border posts with Muse city in the wake of COVID-19 impacts. Of them, Wamting and Kyinsankyawt border posts between Myanmar and China resumed operations. Mang Wein and Kyalgaung posts have still suspended the trade.

Source: The Global New Light of Myanmar