Myanmar’s manufacturing attracts FDI of $81M in H1 this FY

Foreign direct investments of more than US$81.7 million were pumped into Myanmar’s manufacturing sector from 25 enterprises in the first half of the current financial year 2024-2025, beginning 1 April, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
Chinese companies primarily made investments in the manufacturing sector. The manufacturing enterprises that need a large labour force are prioritized to create job opportunities for the locals.
The Myanmar Investment Commission gave the green light to 30 foreign projects from seven countries (China, Chinese (Taipei), Hong Kong SAR, India, Indonesia, Singapore and Thailand) to make investments of $223 million in the past six months, adding increased capital by the existing enterprises.
The Transport and Communication sector pulled $87.7 million with the capital expansion of $82.66 million this FY. The manufacturing sector drew $81.225 million, and the services sector received $44 million. The power sector brought in an FDI of $8.5 million, while investments of less than one million flowed into the agriculture sector respectively.
Singapore stood as the largest foreign investor in Myanmar, with $87.74 million of FDI in the H1 of the current FY, followed by Thailand and China.
Myanmar’s manufacturing sector is concentrated mainly in garment and textiles produced on a Cutting, Making, and Packaging basis, and it contributes to the country’s GDP to a certain extent.
Myanmar Garment Manufacturers Association (MGMA) is committed to accelerating its effort to keep improving Myanmar’s garment sector, joining hands with international brands and partners, as per the MGMA’s statement on its commitment released on 25 August 2023. MGMA also offers an HR management course, an occupational safety and health (OSH) course, and basic and advanced sewing machine operator training to enhance the capacity of the staff.
There are 548 active factories operated under the MGMA as of September 2024, comprising 323 from China, 56 from South Korea, 17 from Japan, 16 from other countries, 63 domestic factories and 25 joint ventures. Forty-eight are temporarily closed for now, according to the MGMA’s monthly Newsletter. 

Source: The Global New Light of Myanmar

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