The Kachin State Government and Myanmar Heng Ya Investment Development Co. Ltd signed a Memorandum of Understanding for developing the Kampaiti Business Park.

U Wei Lin, Kachin State Minister for Finance, Revenue, Planning and Commerce spoke about implementing the business park project in line with the existing law. He also discussed matters related to job creation, trade promotion at Kampaiti gate, cooperation to combat illegal trade, and business opportunities for local people.

The Kampaiti gate is one of the border checkpoints between Myanmar and China. A proposal to upgrade the border gate was approved by the Kachin State government at the second state meeting’s 18th regular session. The Myanmar Heng Ya Development Company is a joint venture between Kampaiti Development Company and the Yunnan-Teng Yin Trading Company.

At an estimated cost of US$22.4 million (31.85 billion kyats), the Kanpiketi Business Park will cover nearly 70 acres (28 hectares) in the border town in northern Kachin State’s Special Region 1. The area is controlled by the New Democratic Army-Kachin (NDAK) militia, which is allied with the Myanmar military.

The business park project includes plans to construct a South Asia-Southeast Asia Culture Park (Zone A) on 12.65 acres, two Trade and Logistics Zones (Zones B and D) on 8.8 acres and 12.7 acres, a Border Inspection Gate (Zone C) on 5.1 acres and a Business Shop (Zone E) on 1.65 acres.

The joint venture company will implement Zone C first. It will include a border inspection gate, government staff housing, a waiting area and related facilities. The company plans to invite other investors to construct the other zones.

Between 1 October and 21 February of the current financial year, Sino-Myanmar trade at Kampaiti gate soared to US$141.24 million from $73.97 million in the year-ago period, according to data released by the Commerce Ministry.

Source: The Irrawaddy News Magazine

Companies will engage in CMP garment and bag making businesses in industrial zones in the Yangon Region including Thilawa Special Economic Zone by investing nearly US$24 million.

• Fineline Company Limited (Hong Kong) will invest US$2.087 million in CMP bag making in Thilawa SEZ;
• Genesis Myanmar Garment Co Ltd US$4.285 million in CMP bag making in East Dagon Industrial Zone;
• South Frame Myanmar Limited, Estonia US$0.852 million in making photo frames;
• Myanmar Journey Bags Co Ltd (Hong Kong) US$1.622 million in CMP bag making in Wataya Industrial Zone;
• Kai Sheng (Myanmar) Industrial of Taiwan US$0.911 million in CMP bag making in Shwepyitha Township;
• Jiangsu Soho (Myanmar) Garment Company Ltd (China) US$1.2 million in CMP garment business;
• Si Yuan  (Myanmar) Co Ltd (Hong Kong) US$0.906 million in CMP garment business in Hlinethaya Township;
• Sunrise (Myanmar) Fashion Co Ltd (China) US$4.5 million in CMP garment business in Thadukan Industrial Zone;
• Ziran Non-Woven (Myanmar) Company Limited (Hong Kong) US$2.9 million in producing and exporting polyester fibres in Industrial Zone (4) in Shwepyitha township;
• Allland Fashion Limited (China) US$1.002 million in CMP garment business in Hlinethaya Industrial Zone and some other Chinese and Taiwanese companies in CMP garment businesses in some industrial zones.

The latest investments approved by the Yangon Region Investment Committee will create 8,920 local jobs.

Source: Eleven Media Group

The Myanmar Garment Manufacturers Association (MGMA) said that half the garment factories in the country may have to shut down temporarily as soon as March, due to a shortage of raw materials from China.

Some 90 percent of the raw materials such as fabrics, textiles, and zips used by garment factories in Myanmar come from China, and supplies have been curtailed due to the coronavirus outbreak in China.

There are some 500 garment factories in Yangon Region. Of the total, 263 are Chinese-owned, 67 South Korean, and 92 local. The factories employ an estimated 500,000 workers.

Raw materials for the factories are imported from China by sea as well as across the border, but both routes have stopped flowing. Under the circumstances, garment factories run by South  Korean companies may stop operating in early March. Without any improvement in the situation, the stoppage may continue till the end of April.

For the flow of raw materials to resume, factories in China have to be operating at full capacity, but currently, just less than 60 percent of factories in China have resumed businesses and 50 percent of workers are not able to return to their workplaces yet. Even if factories in China were operating normally, there are difficulties with transportation and truck drivers cannot return their jobs due to travel restrictions in China.

It may take up to a month to obtain raw materials even when the situation returns to normal, and then Myanmar will still have compete with countries like Vietnam and Cambodia to buy the materials.

Source: Myanmar Times

In the month of January, 196,836 shares worth around K1.25 billion were traded on the Yangon Stock Exchange. Currently, shares of five listed companies are being traded on the exchange.

The five companies listed on the exchange are: First Myanmar Investment (FMI), Myanmar Thilawa SEZ Holdings (MTSH), Myanmar Citizens Bank (MCB), First Private Bank (FPB), and TMH Telecom Public Co. Ltd.

Last month, the price per share closed at K11,500 for FMI, K4,000 for MTSH, K8,400 for MCB, K23,000 for FPB, and K2,850 for TMH on the exchange.

A total of 2.4 million shares worth K13.39 billion were traded on the Yangon Stock Exchange (YSX) in 2019, a significant increase compared to the previous year. The YSX has also sought the government’s support to get more public companies to participate in the stock market and to help more institutional investors, such as financing companies, investment banks, and insurance companies, to emerge.

More than 2.5 million shares of three listed companies were traded on the YSX in 2016, and their value was estimated at K70 billion. In 2017, despite an increase in the stock trading volume to 2.6 million shares, the trade value was only K22 billion. In 2018, 2.3 million shares of five companies, worth K11.5 billion, were traded on the exchange, according to the annual report of the YSX.

Source: The Global New Light of Myanmar

French entrepreneurs met with their Myanmar counterparts at a business matching event organized at the headquarters of the Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI).

The French businessmen were led by Mr Francois Corbin, President of the French-Myanmar Business Council and ASEAN Committee for MEDEF International. They were accompanied by the French ambassador to Myanmar Mr. Christian Lechervy.

The French delegation included 20 entrepreneurs engaged in energy, water and sanitation, railway transportation services, infrastructure building, banking and microfinance services, gas, food, water transportation services, road transportation, and trading businesses.

Mr Christian Lechervy said the business matching event aimed to explore opportunities to link French entrepreneurs with their Myanmar counterparts, encourage interaction between private sector players, and promote opportunities through business relations.
As part of the programme, French entrepreneurs will also visit the Thilawa Special Economic Zone to explore potential investment opportunities.

In addition, vice president Dr. Maung Maung Lay spoke about the current economic climate and the investment and trade situation in Myanmar. Entrepreneurs from the two countries discussed potential investments and business opportunities. Between 1988 and December, 2019, 22 enterprises from France have brought in foreign direct investments of over $550 million into Myanmar.

Source: The Global New Light of Myanmar