Thai entrepreneurs are encouraged to invest in Myanmar after domestic industries have started to slow down. Meanwhile, basing their production in Myanmar will give them an edge in the ASEAN Economic Community (AEC).
Fiscal Policy Research Institute (FPRI) Director Kanit Sangsupan pointed out that after opening its door to the outside world, Myanmar has become an attractive investment destination for Thailand. The country has sufficient economic potential given its location, population size and abundance in natural resources. Thus, Myanmar attracted as much as USD40 billion in foreign direct investment (FDI) in 2011, especially from Chinese business people who have great interest to invest in the country.
Meanwhile, investment in Thailand is growing at a limited pace since many industrial factories are unable to expand to accommodate the needs for investment. Additionally, as trade in the ASEAN region will become liberalized under the AEC in 2015, Thailand’s investment in such a neighboring country as Myanmar is an appropriate option to be its production base outside the country, especially the Dawei Special Economic Zone.
However, it must be admitted that Thai entrepreneurs are still concerned about Myanmar’s political stability. However, Myanmar has shown a clear policy and issued special laws to promote investment in the country. Moreover, it has granted a concession on the development of the Dawei Special Economic Zone to Italian Thai Development PLC. for a period of 60 years.
Additionally, investors are recommended to study possible risk factors, which may include currency volatility, conflicts between the government and ethnic groups, and the country’s infrastructure. Nevertheless, the overall picture still shows Myanmar as an interesting investment destination for Thai entrepreneurs.
Source: thainews.prd.go.th/en/news.php?id=255502090025
