By Kyaw Htike Soe
THE Mandalay Region Investment Committee (MRIC) gave the nod to two Myanmar citizen-invested projects at the monthly meeting on 14 January, according to the Directorate of Investment and Company Administration (DICA) under the Ministry of Investment and Foreign Economic Relations.
The MRIC granted investment projects were valued at almost K 6.962 billion, creating up to nearly 280 jobs for Myanmar citizens. The MRIC has so far approved 79 foreign direct investment projects from 16 countries including US, Japan, China, Thailand, Singapore, Hong Kong, Netherlands and France in Mandalay Region and 179 domestic proposals since its creation. The foreign investors have pumped US$ 3.97 billion into Mandalay Region’s manufacturing, electricity generation and service sectors, while local entrepreneurs injected more than K 5260 billion in the infrastructure, manufacturing, agriculture and other service sectors, the MRIC said. About 60 per cent of foreign direct investment came to Yangon Region and around 30 per cent of total FDI flowed to Mandalay Region while the remaining regions and states received a small share of total capital inflows, according to the figures issued by the DICA.
Majority of FDI went to the industry, agriculture, real estate and manufacturing sectors, said an official the DICA’s Mandalay branch. Countries such as China, Japan, France and Republic of Korea invested in 79 projects, the DICA said. Most of the investments came from China, followed by Singapore and Hong Kong. The DICA official speculated that skyrocketing FDI inflow into Mandalay Region contribute to the creation of job opportunities for local people, thereby increasing their income and lifting their socioeconomic status. The Myanmar Investment Commission (MIC) said that the region is expected to attract more FDI in the years to come. Mandalay Region has been viewed by most foreign investors as Myanmar’s top tourist spot. Mandalay Region has also long been touted by local authorities as a promising investment destination.
Meanwhile, foreign countries are pouring capitals into the Myotha Industrial Park in Ngazun Township, Mandalay Region. Some foreign enterprises have already started operations in twelve sectors in the industrial park. The DICA has been giving the green light to the foreign companies wishing to put investments in the Myotha Industrial Park City which is jointly developed by the Mandalay Regional Government and the Mandalay Myotha Industrial Development (MMID) with the aim of establishing over 100 factories in the industrial park within three years. Foreign direct investments worth over US$ 600 million have been channeled into the industrial park since its establishment, according to the DICA. A Chinese automaker built a car assembly factory in the industrial park with an investment amount of US$ 30 million.
The plant aims to manufacture ten models of seven types of high quality vehicles to be sold not only in local market but also foreign countries at reasonable prices. It is capable of producing 5,000 cars annually and employs 130 staff including 110 Myanmar citizens. The industrial park was first developed in time of the previous government and the project is now being implemented under the supervision of the local government. Construction of the project began in 2013 on 260,000 acres of land and around 12,000 acres, or 4.6 per cent of land space is used by factories. The DICA has been cooperating with the local government to woo FDI into the region and organizing seminars, investment and business forum. The local government is also making all-out efforts to turn Mandalay Region into an investor-friendly area. The MIC permitted 21 foreign investment projects worth US$ 1146 million in the region while Myanmar citizen’s capitals in the region amounted to K 1889.13 billion in the financial year 2017-2018. Investments from foreign countries in the Mandalay Region declined to US$ 528 million while Myanmar citizen’s investments in the region were valued at K 172 billion in the fiscal year 2018-2019. FDI inflows into Mandalay Region so far totaled US 3.97 billion while Myanmar citizen investment volume reached over K 5,260 billion.
