Supporting SMEs, Manufacturing Locally and Operating in Underdeveloped Areas Criteria for FDI Approval, Official Says

A top official from the Ministry of Commerce told an audience of foreign investors and businesses that foreign investments should be able to support SMEs, manufacture products in Myanmar and operate in underdeveloped areas. Those are the criteria upon which the government will approve or reject foreign investment proposals.

The government will scrutinise every foreign investment application and only approve investments which are beneficial for the country, said U Toe Aung Myint, permanent secretary of the Ministry of Commerce.

“Foreign companies come here as they know there are opportunities for making a profit. That’s why the Myanmar Investment Commission [MIC] will decide to grant permission only to foreign investments which can create benefits for our country and our environment,” he told the audience at the Myanmar-EU Economic Forum on June 8.

The Myanmar-EU Economic Forum was held in Nay Pyi Taw by the European Chamber of Commerce in Myanmar (EuroCham).

The ministry will only allow companies which can really implement their business operations in Myanmar and will not grant permission to investments which will exploit natural resources and harm the environment, the permanent secretary explained.

“Investments which support small and medium enterprises [SMEs], produce their products within the country, create massive job opportunities and have plans to run their business in underdeveloped areas will be permitted to come to Myanmar,” he added.

Since 2014, Myanmar has been exporting bean sprouts produced from green gram to the EU, as a result of cooperation between the Ministry of Agriculture, Livestock and Irrigation as well as the Myanmar Pulses, Beans and Sesame Seeds Merchants Association.

Some export items are still required to develop and improve before they meet EU import standards. But other items such as fishery products, garment-related products, beans and broken rice are being currently exported to the EU.

“In addition to these goods, fruits should also be a new export item. We have a supply of goods but we do not have the capacity to ensure that our goods meet the quality that they want. It is important that we have to try to meet their standards if we want export to the EU,” he told The Myanmar Times.

He said Myanmar farmers and producers have to export goods that meet EU standards by cooperating with EU experts and groups from EuroCham.

“To export goods in large volumes, we need to inform the producers and engage them,” he said, adding that the economic summit meeting is one way of promoting the country’s economy.

 

Source: The Myanmar Times

 

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