jb5a9978mmk

Myanmar manufacturing sector attracts $179 million in past seven months

A total of 35 foreign enterprises pumped US$179 million into Myanmar’s manufacturing sector in the past seven months (April-October) of the current financial year 2022-2023, including capital expansion by the existing enterprises, as per the statistics released by the Directorate of Investment and Company Administration (DICA). Myanmar attracted foreign direct investments of $1.45 billion from 52 enterprises during April-October period. The majority of the investments brought into the manufacturing sector. Agriculture sector drew $3.5 million from two projects.

Power sector received $817 million from 10 projects, while one enterprise put $29 million in the real estate sector and two other foreign enterprises made an investment of $413.068 million in the service sector respectively. Mining sector earned $7 million from one project, while one enterprise also put investments of less than a million into the hotels and tourism sector and some capital expansion of the existing businesses are also seen. Additionally, the livestock and fisheries sector saw a capital expansion of $1.545 million.

The manufacturing enterprises and businesses that need a large labour force are prioritized to create job opportunities for the local community, according to Myanmar Investment Commission. Although some labour-intensive enterprises faced financial hardship amid the COVID-19 negative impacts and the political changes, the industry is now returning to normal after the COVID-19 vaccination programme for the workers, as per the HIS Markit’s September report. In a bid to boost factory productivity with a healthy workforce in the garment industry, Mobile Medical Check to garment workers took place in Yangon and Nay Pyi Taw, supported by UNICEF Myanmar.

Moreover, Myanmar Garment Manufacturers Association has organized Labour Law Awareness and WCC Training since July 2022, with the support of the UNICEF Myanmar. It aims to provide the soft skills needed for industrial development and create a better workplace for garment workers. Additionally, the association launched voluntary labour compliance assessment-VLCA Online System in November 2022. 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. 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 the estimated capital of $202.667 million.

Source: The Global New Light of Myanmar

china-myanmar-ruili-muse-border-John-Meckley-Flickr-696x464

Sino-Myanmar major border crossing Kyalgaung yet to resume even after over 18 months

Kyalgaung border post, which performed the majority of trade between Myanmar and China, has not resumed even after one and a half years, said U Min Thein, vice chair of Muse Rice Wholesale Centre.
China has restricted border access through the Muse-Kyalgaung (Mang Wein) border post between Myanmar and China amid the COVID-19 cases, since 30 March 2021. On 18 October, Myanmar’s officials and counterparts from Dehong, Yunnan Province negotiated the promotion of bilateral cross-border trade through a video conferencing.

“The Kyalgaung border crossing is yet to resume. We are ready for trade resumption,” said U Min Thein. Prior to the pandemic, Kyalgaung was the busiest and biggest trade post and it performed the highest trade in the China-Myanmar border. Those traders involved in Muse trade zone are relying on the Ruili city. There is a direct trade channel to Ruili through Kyalgaung point so the traders have a smooth transport. This route brings easier and better access to Ruili from Muse border post. Only when the Kyalgaung border post is reopened can the trade boost, traders elaborated.

China shut down all the checkpoints linking to Muse border amidst the COVID-19 pandemic. Of the checkpoints, Kyinsankyawt has resumed trading activity from 26 November 2021. Myanmar daily delivers rice, broken rice, rubber, fishery products, chilli pepper and other food commodities to China through Kyinsankyawt with the use of about 70 trucks and building materials, electrical appliances, pharmaceuticals, fertilizers, household goods and industrial raw materials are imported into the country with the use of 30 trucks. Myanmar has opened five border trade zones with China; Muse, Lweje, Kanpaiti, Chinshwehaw and Kengtung. The majority of the trade is carried out through Muse land border, Ministry of Commerce’s data indicated.

Source: The Global New Light of Myanmar