Myanmar’s manufacturing sector attracts US$84M+ FDI in Apr-Oct

Foreign direct investments of more than US$84.25 million flowed into Myanmar’s manufacturing sector from 28 enterprises in the first half of the current financial year 2024-2025, beginning 1 April, as per the statistics released by the Directorate of Investment and Company Administration (DICA).
Chinese companies primarily made investments in the manufacturing sector. The manufacturing enterprises that need a large labour force are prioritized to create job opportunities for the locals.
The Myanmar Investment Commission gave the green light to 33 foreign projects from seven countries (China, Chinese Taipei, Hong Kong SAR, India, Indonesia, Singapore and Thailand) to make investments of over $220 million in the past seven months, adding increased capital by the existing enterprises from China, Chinese Taipei, Hong Kong SAR, India, Republic of Korea, Japan, Seychelles, Singapore and the UK.
The Transport and Communication sector pulled $87.7 million with the capital expansion of $82.66 million this FY. The manufacturing sector drew over $84 million, and the services sector received $44 million. The power sector brought in FDI of $8.5 million, while investments of less than one million flowed into the agriculture sector, respectively. The livestock and fisheries sector witnessed a one-million-dollar increase in capital by existing enterprises.
Singapore is the leading foreign investor in Myanmar, with $87.74 million of FDI in the past seven months of the current FY, followed by Thailand and China.
Myanmar’s manufacturing sector is primarily concentrated in garments and textiles produced on a Cutting, Making, and Packing basis, and it contributes to the country’s GDP to a certain extent.
Myanmar Garment Manufacturers Association (MGMA) is committed to accelerating its effort to keep improving Myanmar’’s garment sector, joining hands with international brands and partners, as per the MGMA’’s statement on its commitment released on 25 August 2023. MGMA also offers an HR management course, an Occupational Safety and Health course, and Basic and Advanced Sewing Machine Operator training to enhance the capacity of the staff.
There are 548 active factories operated under the MGMA as of September 2024, comprising 323 from China, 56 from South Korea, 17 from Japan, 16 from other countries, 63 domestic factories and 25 joint ventures. Forty-eight are temporarily closed for now, according to the MGMA’s monthly Newsletter. — KK