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Vietnamese enterprises to increase investment on Myanmar trade

vietnam myanmar tradeVietnamese enterprises should strengthen their investment and trade in Myanmar, trade and investment have been able to maximize the potential of both countries, according to the deputy director of the branch in Ho Chi Minh City Chamber of Commerce and “Industry of Vietnam (VCCI).

Myanmar is regarded as a promising market in the ASEAN Economic Community is formed later this year, giving an advantage Vietnamese enterprises boost trade and investment within the ASEAN bloc, Nguyen The Hung, deputy director of the branch VCCI, said at a conference in Ho Chi Minh City to promote investment and trade in Myanmar last Thursday market.

ASEAN members are Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Myanmar, Cambodia, Laos and Vietnam.

Read also : Myanmar trade to effect over China business slowdown

In the first quarter of 2015, Vietnam’s exports to Myanmar totaled $ 85 million, while imports from the country were valued at more than $ 17.1 million.

At the end of this year, bilateral trade expected to exceed $ 500 million, while it is expected that the influx of foreign investment in Vietnamese enterprises in Myanmar to exceed $ 1 billion, Hung said.

In 2014, Vietnam’s exports to Myanmar totaled $ 345.9 million, an increase of 51.8 percent compared with 2013, while imports from Myanmar totaled $ 134.8 million, up 9 1 percent on the same period last year, Hung said, citing figures from the customs of Vietnam.

Deliveries of Vietnam in Myanmar have gradually increased since 2011 from 67 percent this year, up 42 percent in 2012 to 90 percent in 2013.

In addition, Vietnamese exports to Myanmar market have two positive features: the ranking of Vietnam has steadily improved, and various kinds of Vietnamese products have penetrated this market, said the deputy director.

Besides traditional export items such as steel, machinery and equipment, materials and plastic products, clothing and ceramics; Vietnamese food and processed foods, cement and clinker were accepted by local customers.

Myanmar is now a target market for Vietnamese manufacturers in many industries, such as fertilizer, household appliances, cosmetics, building materials, pharmaceuticals and retail products.

Vietnam is considered one of the 10 most important trading partners of Myanmar, ranked ninth in the end of 2014.

The country is among the top 30 foreign investors, with eight projects with a total value of $ 700 million.

This number should increase to $ 1.5 billion at the end of this year, Hung, deputy director of VCCI branch added.

Potential areas of foreign direct investment are very different, given the fact that the Myanmar economy has been open to the world market for four years.

Among many areas, such as banking and financial services, insurance, aviation, power generation, industrial tree plantations, construction equipment manufacturing, real estate and oil exploration and development, Vietnam has an advantage in telecommunications and seafood and processing of agricultural products.

Read also : Myanmar Caneware industry

In addition, Vietnam has about 300 affiliated companies with offices or representatives in Myanmar.

Moreover, the Myanmar government is encouraging foreign companies to invest in the media and broadcasting, Hung quoted Information Minister U Ye Htut Myanmar saying that during his visit to Vietnam earlier this year.

Myanmar expects the participation of Vietnamese enterprises in this market because they can contribute up to 30 percent of capital in the field of media, 95 percent in the publication, and to 100 percent in education and training, especially in teaching English, Hung added.

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