Myanmar FDI approval misses target, but huge projects expected this year

Myanmar saw US$5.7 billion worth of foreign direct investments (FDI) approvals during fiscal 2019-20, just around US$100 million shy of its US$5.8 billion target, said U Thant Sin Lwin, Director General of Directorate of Investment and Company Administration.

The shortfall was due to the COVID-19 pandemic, which hampered the flow of investments into Myanmar since April. FDI for fiscal 2019-20, which ended on September 30, was around US$1.2 billion more than fiscal 2018-19.

“FDI did not not meet the target due to travel restrictions on foreigners. Some projects which were scheduled to take place have been suspended until now,” he said at a press conference.

As such, there are still projects and proposals worth US$3.5 billion in the pipeline. These are mainly in power generation, including the 30 solar power projects awarded to 15 predominantly Chinese investors this year.

“These are large projects and we expect to be able to meet the target for fiscal 2020-21,” U Thant Sin Lwin said.

The FDI target for fiscal 2020-21 is US$5.8 billion and US$8.5 billion in fiscal 2021-22.
About a third of the FDI for fiscal 2019-20 was channeled into electricity generation, while industry and housing received a further 20 percent each of the funds.

The top investors in Myanmar during the period are Singapore, China, Thailand, Hong Kong, UK, Korea, Vietnam, Malaysia, the Netherlands and Japan.

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Source : Myanmar Times

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