09:48 | 21/09/2016 Economy
(VEN) - Vietnamese businesses have invested almost US$564.23 million in Myanmar via 54 projects so far, making this country Vietnam’s eighth largest overseas investment partner.
According to the Ministry of Planning and Investment’s Foreign Investment Agency, Vietnamese investment abroad is strongly increasing. Myanmar is one of top investment destinations for Vietnamese companies.
Vietnamese investment projects in Myanmar include a number of large-sized projects such as the Hoang Anh Gia Lai Group’s more than US$400 million Myanmar Center project. Association of Vietnamese Investors in Myanmar (AVIM) Chairman Tran Bac Ha said that the Viettel Group is completing final procedures for the implementation of their US$735 million telecommunication joint-venture project.
At the Vietnam-Myanmar Investment Promotion Workshop held recently by the Foreign Investment Agency and the Embassy of Myanmar in Vietnam, the representative of the Embassy of Myanmar said that Vietnamese investment projects in Myanmar have effectively operated while closely observing local laws. He also said that the government of Myanmar is willing to receive Vietnamese investors.
Foreign Investment Agency Head Do Nhat Hoang said that Vietnamese investment projects in Myanmar have rapidly increased in recent years. However, they are not commensurate with potential and demand in both countries.
To make it more able for Vietnamese businesses to expand their investment in Myanmar, authorities of the two countries will in the near future carry out surveys of Vietnamese investment needs in Myanmar and resolve problems in order to facilitate Vietnamese businesses in Myanmar.
Wynn, a senior leader of the Myanmar Investment Commission, said people in Myanmar like Vietnamese products, particularly medical equipment, medicines and consumer goods.
To foster foreign investment, Myanmar currently exempts enterprise income tax during the first five years of operation of foreign-invested projects. Foreign businesses in Myanmar are also eligible to employ 75 percent of foreign workers during the first two years of operation, 50 percent in the second year and 25 percent after that. If successful, foreign businesses will find it easy to enter neighboring markets like Bangladesh and the south of India.
However, Foreign Investment Agency Deputy Head Vu Van Trung recommended that Vietnamese investors in Myanmar carefully learn about the Dual Tax Avoidance Agreement and the Investment Protection Encouragement Agreement which were concluded in 2000 between the two countries. He also suggested that businesses focus on their advantageous areas such as farming, cash crops, aquaculture, telecommunications and banking.
In addition, experts underlined the need to carefully learn the market in Myanmar and closely follow their laws in order to achieve success in this country where competition is growing.
According to the Ministry of Planning and Investment’s Foreign Investment Agency, most Vietnamese investment projects in Myanmar have been highly appreciated.