Myanmar is now becoming a new investment haven for Thai businessmen with growing interest for joint ventures with Myanmar private sector.
Kasikorn bank’s managing director, Theetanant Srihong stated that most of the Thai business operators are looking to form joint ventures with the country’s private sector to bypass Myanmar legal complications and issues of high public utility cost.
He said 20-30% of investors scouting opportunities in Myanmar ended up entering into such joint ventures.
But he said the number of investments by Thai businesses is still behind that of Singapore, but the pace has visibly quickened.
The first group of investors penetrating Myanmar markets are the large and medium enterprises from the trading sector, and those business operators who are aligned with Japanese entrepreneurs.
He said that the latter followed their Japanese partners when they expanded their investment base into the nation.
Half of big Asian businesses plan to expand in Myanmar
Half of large Asian companies see Myanmar as an opportunity to expand their business, according to research by Singapore’s United Overseas Bank (UOB) disclosed at a forum for regional investors Wednesday.
More than 300 businesspeople from China, Hong Kong, Singapore and Vietnam, among other places, attended the event in Yangon titled “Unlocking Myanmar’s Potential,” which was hosted by UOB.
The bank is looking to provide finance for more ventures in Mynmar, as economic reforms and the dropping of Western sanctions have sparked optimism for the country’s long-stagnant economy.
Deputy Commerce Minister Pwint San was also in attendance, and in a short speech invited investors to take advantage of Myanmar’s “untouched” market.
Fredrick Chin, UOB’s managing director and head of group, said UOB wanted to support businesses to move into Myanmar.
Chin said that a recent survey by UOB found that half of Asian enterprises with annual revenues between US$10 million and $160 million see Myanmar as an opportunity for expansion.