by Feng Yingqiu
YANGON, May 3 (Xinhua) -- Myanmar continued to attract more foreign investment in the current 2017-18 fiscal year that started in April in the wake of lesser investment in the last 2016-17 fiscal year.
With a new investment law coming into effect on April 1, the government lures foreign investors by offering favorable income tax exemption which includes tax breaks if they invest in government's promoted areas and sectors.
The Myanmar Investment Commission (MIC) designed three zones as promoted areas based on the regional development, setting the promoted sectors for investments as agricultural businesses, forestry businesses, livestock and breeding, food manufacturing, goods processing, infrastructure development and industrial zoning to support the government's 12-point economic policy.
According to statistics, a total of 6.874 billion U.S. dollars of foreign direct investment from 135 foreign enterprises entered Myanmar in the last fiscal year which ended in March, the first re-declination of such investment over the past five years.
However, laws and regulations alone are not enough to bring in large amounts of foreign investments for creating job opportunities. Creation of better business environment and increase in flexibility of financial sector are also essential factors attracting more investment, said experts.
According to the Directorate of Investment and Company Administration (DICA), no foreign investment came in the sectors of agriculture, mining and oil and gas during 2016-17.
During the fiscal year, transport and communication topped the investment with 3.08 billion U.S. dollars, followed by manufacturing with 1.18 billion dollars, power with 909.883 million dollars, real estate with 747.62 million dollars, and hotel and tourism with 403.646 million dollars.
Countrywise speaking, Singapore stood as Myanmar's annual largest foreign investor in 2016-17 with 3.82 billion U.S. dollars, followed by Vietnam with 1.38 billion dollars and China with 482.59 million dollars and Thailand with 423.058 million dollars.
Foreign investment totalled 70.35 billion U.S. dollars as of March this year since late 1988 with China ranking top in the foreign investors' line-up, followed by Singapore, Thailand and Britain.
Meanwhile, investment activities permitted to be conducted by foreign investors include fresh water fisheries and relevant services and publishing and distribution of periodicals in ethnic languages including Burmese.
Investment to be allowed only in the form of joint ventures are 22 enterprises including some manufacturing businesses and local tour services.
There are over 100 enterprises allowed to be operated only with the approval of the ministries concerned, according to the MIC.
Myanmar is aiming to attract over 6 billion dollars in foreign investment in the current 2017-18 fiscal year.
