Foreign investment in Myanmar flows to the production with piecework system

The amount of investment from Hong Kong within three years has increased by more than US$ 589 million while the majority of funds flow to the production operated under the piecework system.

Within three years under the new government’s term from the fiscal years 2010-11, 2011-12, 2012-13, Hong Kong investment rose from more than $ 5.9 billion in the fiscal year 2010-11 to more than US$ 6.5 billion in the fiscal year 2012-13, a net rise of $589 million, according to the Directorate of Investment and Companies Administration.

The investment money flows into the majority of production firms operated on piecework system as Myanmar Investment Commission permitted these firms as per investment proposals from Hong Kong.

Hong Kong’s firms are being operated as a direct investment or as a joint venture with local companies according to the foreign investment law.

In 13/2014 meeting held by Myanmar Investment Commission, a company from Hong Kong was permitted to operate, as a hundred percent foreign investment, to produce wedding and lace costumes, and garment accessories on piecework system in Yangon Region’s Mingaladon industrial zone.

As foreign countries are continuously investing in Myanmar’s production sector, this year’s foreign investment by the end of March amounts to more than $ 2.7 billion.

Source: ELEVEN Myanmar

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