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Monday , December 17 2018
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Myanmar expects to re-engage foreign investment

myanmar jewelLarge companies are distancing themselves from gem industry to escape from sanctions imposed by the United States.

If you believe the official trade statistics, imports of precious stones, jade and other precious stones Myanmar to China jumped to $ 12.3bn last year, a tenfold increase of only $ 1.2 billion in 2013.
These figures are likely to show greater clarity, as well as trade in precious stones. For many years, this massive trade has been mostly informal and under the radar, industry estimates Myanmar’s gem somewhere between $ 15 billion to US $ 20 billion per year.

Read also : Myanmar export more Tin Ore to China

In any case, in fact, trade has begun to decline. This is partly due to the slowdown of the Chinese economy. Increasingly, however, some of the largest groups in Myanmar, such as the Max Myanmar, claiming to be from, or sale of gem mining companies in the effort himself off the list of US sanctions.

Many Myanmar groupings flourished over the two decades of international isolation of the country, cultivating close relations with the military and secure lucrative concessions in the resource industry and trade. After these measures, cash circulated in a wide variety of other businesses.

However, the lucrative extractive industries have been particularly controversial because of its association with land grabbing and pollution.

This goes beyond mining to other industries, such as logging and agricultural trade. In a recent report, the environmental group Global Witness estimates that at least 5.3 million acres of land had been granted concessions in agricultural trade in recent years, especially without the consent of the local people, and almost without compensation.

USA They have long suspected large groups to participate not only land grabbing and environmental damage, but also drugs and weapons trade. Myanmar sanctions were imposed in 1997, and the US Treasury Office of Foreign Assets supervising (OFAC) issued a list of large corporations, known as the SDN list by which all US units are not allowed to do business.

Read also : Myanmar Jewels

SDN list is still a major obstacle to foreign investment, including non-US companies. However, given the dominant position by investing in local companies, foreign companies often have no choice but to cooperate SDN related groups in Myanmar.

Many tycoons have launched a public relations themselves have withdrawn from the SDN. Only one, however, Win Aung Dagon International conglomerate, has so far been successful.

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