tag:blogger.com,1999:blog-35361250896334396002024-02-06T23:36:49.711-08:00Exploring Chinese and Indian Investment in Myanmarbecca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-3536125089633439600.post-53884359333359453302015-01-24T07:28:00.000-08:002015-03-16T08:45:10.579-07:00Day Six: China Power Investment Corporation <div dir="ltr" style="text-align: left;" trbidi="on">
Day Six<br />
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<b>China Power Investment Corporation</b><br />
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For our last meeting of the trip, we were honored to meet with three representatives from China Power International (CPI), a major Chinese SOE working on a number of hydropower projects in Myanmar. Most notable of their projects has been the construction of the Myitsone Dam, of which the Myanmar Government forced a stop to the construction in 2011 due to local opposition to the project. CPI said that they had assumed the government was taking care of public concerns and were taken aback with the forced suspension. The opening of the country to more investment from abroad has been a challenge for Chinese firms who had worked with the former military government with ease, but CPI remains determined to continue expanding power projects in the country and give back more to help the country develop.<br />
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Meanwhile, Myanmar is a highly underserved market for energy service. Chow Jing Hwa, the Vice President of CPI, told us that while the US operates at 1.3 kilowatts of power use per capita and China operates at 0.178 kilowatts per capita, Myanmar operates at a mere 0.05 kilowatts per capita. The whole country, including the large cities like Yangon and Mandalay, report frequent power outages. Nevertheless, around 100 gigawatts of hydroelectric potential is found in the country, while only 2.6 gigawatts has been developed to date. CPI hopes to continue to build hydropower electricity in the future, but is having to deal with more public opposition to Chinese encroachment and incoming competition from abroad. According to Mr. Chow, working in Myanmar has been more challenging than working in other countries that CPI operates due to a lack of clear operating standards in the country, a lack of well-trained engineers, the lack of any third party groups to monitor government actions, and the security concern with armed minority groups.<br />
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To ease local concerns about CPI’s operations, they have begun building their CSR programs in the country, something that the Myanmar government has highly been stressing in recent years. In 2013, CPI issued their first CSR report, which is available on request. It has been hard, however, as there is a struggle to define how much of role investors should take in development projects which should be run by the government. While CPI wishes that it could be doing more, right now it will continue to do its best with the limited opportunities and large restrictions currently in place.<br />
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~Kevin J Cottrell<br />
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com2Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-9205145606040440452015-01-23T15:42:00.000-08:002015-03-16T08:45:05.283-07:00Day Five: Indian Embassy and Chinese Embassy<div dir="ltr" style="text-align: left;" trbidi="on">
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Day Five<br />
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<b>Indian Embassy in Yangon</b></div>
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The SAIS study group met with the Embassy representative from the
Commerce and Investment department with whom we were lucky to both hear from
and discuss matters of business development and current political issues with.
As a major trading partner of Myanmar, India has held an important role as the
3rd largest export destination and the 5th largest source of imports into
Myanmar. Sharing a border that stretches nearly 1,000 miles long and and a
trade agreement signed in the 1970s, the two countries have enjoyed bilateral
trade which generated up to $2.1 billion in 2013-14.<o:p></o:p></div>
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Regarding the composition of trade, agricultural products in the
form of pulses and beans generated nearly $600 million of India’s
imports from Myanmar. Other secondary agricultural trade products were imports
of timber and wood products. In line with Prime Minister Modi’s
initiative to promote different economic corridors such as the Corner Station
Highway and the BCIM Corridor, investors have been looking to support
infrastructure to help facilitate transportation for trade. The lack of
Infrastructure as evidenced in the banking sector, the inefficiency of movement
in the shipping industry, and the small number of passenger flights between the
two countries (presently only 3 daily flights) highlight some of the present
challenges Indian investors face when conducting commerce. <o:p></o:p></div>
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India’s assistance to Myanmar was estimated
to be about $1.5-$2.5 billion as reported by our speaker, with a majority
funneled towards the construction of Yangon’s new airport,
expansion of the country’s highway, and a buildup of “soft
zones”, such as the IT sector. The diplomat expressed that India
was also engaged in capacity building in the natural resources sector through
skills and technical training and corporate social responsibility initiatives
(mainly in the oil and gas industry) as part of their investment activities. To
further encourage investment into Myanmar’s economy by not
only India but by the rest of the global community, the diplomat emphasized
that improvements could made to the country’s investment
regulations to avoid double taxation as well as their real estate market to
prevent prohibitively high prices from increasing. <o:p></o:p></div>
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Our discussion with the diplomat illustrated important themes of
international development that SAISers are well familiar with: the development
of a country cannot be done overnight or even within the span of a few years.
There is also no set model of development for a country- the unique political,
economic, social elements of the environment should all be considered and taken
into account as they influence what can be expanded upon. <o:p></o:p></div>
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<o:p> ~Eleanor Doong</o:p></div>
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India’s political engagement with Myanmar has remained
consistent through the years despite political turmoil and regime changes in
Myanmar. Bilateral trade between the two countries currently stands at $2.1
billion in favor of Myanmar with India importing nearly $600-700 million worth
of rice and pulses. Other significant imports include wood logs and timber.
However, following an April 2014 order by the Myanmar government banning export
of logs, the timber trade has come down substantially. On the other hand,
nearly 33% of Myanmar’s pharmaceuticals imports comes from India. <o:p></o:p></div>
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In terms of investments, India has committed nearly $400
million in the oil and gas sector. Indian oil majors such as ONGC and GAIL are
active players in the Burmese oil and gas sector: the two Indian companies are
part of the international consortium led by Korean firm Daewoo to build the
Shwe Gas and Oil Pipeline from Myanmar’s western coast all the way up to the
China-Myanmar border. India is also actively involved in building the
India-Myanmar-Thailand tri-lateral highway in order to enhance connectivity and
expand New Delhi’s engagement with ASEAN. The project has attracted funding
from ADB, JICA and the Indian government and is expected to be completed by
2016. The Sitwe Port Development project is also of significant interest to
India and is being executed by an Indian firm, Essar. The port is likely to be
commissioned in early 2015. However, building support infrastructure from the
Sitwe port to the inner mainland will be crucial for the success of the project.
Overall, Indian investment commitments in Myanmar total $1.5-2 billion.<o:p></o:p></div>
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Other areas of cooperation between the two countries include
student exchanges through the ITEC program, double taxation avoidance agreement
and tie-ups between India’s IT sector and Burmese banks and telecom companies. <o:p></o:p></div>
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<o:p>~Shrey Verma</o:p></div>
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<o:p><b>Chinese Embassy in Yangon</b></o:p></div>
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After spending a hot midday at the Bo Gyoke Aung San
Market, Professor Knight and six of us students attended the meeting with
Ambassador Houlan Yang and Mr. Zhu Bin, attach<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">é</span> in political and information section.
The number of visiting delegates was capped at seven perhaps due to the setting
of the meeting room<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">—</span> two chairs at the end of the room, facing the door. In the
background, there was a folding screen decorated with a traditional Chinese
painting. On the left and right, were chairs for the rest of delegates, three
on each side. <o:p></o:p></div>
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Having listened to our self-introductions, the
ambassador gave a brief overview of Chinese investment in Myanmar and answered
our questions. In recent years in Myanmar, Chinese investment in energy and
industry has been increasing. As for agriculture, China has sent Chinese
agricultural officers and farmers to Myanmar to exchange ideas and provide
training, as well as provided technology transfers.<o:p></o:p></div>
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Ambassador Yang mentioned with concern that throughout
these years, many big programs invested by the Chinese have faced local
challenges. Such challenges rose from a few reasons. First of all, Myanmar
people may be discontent about some agreements signed between Chinese companies
and the military government during the junta era which were not transparent. In
that era, signing contracts with the military regime was the easier and fast
way to do business. However, this is no longer the case in today<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">’</span>s Myanmar.
Amb. Yang said that Chinese companies should follow and respect local business
rules, culture and religion, as well as take on more social responsibilities.<o:p></o:p></div>
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Another reason is environmental concerns. Many
hydropower projects are protested by local residents who fear that such
projects will destroy the eco-system. In the hydropower sector, Chinese
investment is much bigger than other countries, which makes it more difficult and
costly for the former to withdraw from projects amid demonstrations. The ambassador
mentioned that a commission has been set up by the China and Myanmar to help
deal with conflicts between Chinese investors and local communities and NGOs. However,
given the inertia of public opinion and the hindrance from some media that make
news without having done comprehensive researches, the work is not easy<o:p></o:p></div>
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When stressing the importance of Myanmar to China, the
ambassador said that China and Myanmar share a border of over 4000 km. Myanmar<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">’</span>s development
is of great significance to the strategic opening of the Chinese hinterland,
especially Yunnan Province. The Myanmar government has suggested building
cross-border economic zones. China welcomes the idea, nevertheless, with
concerns about the difficulties to control such a long border line and ongoing ethnical
conflicts in north Myanmar, it remains prudent and supports ceasefire among
ethnics.<o:p></o:p></div>
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Furthermore, Amb. Yang also talked about the challenges
for Myanmar<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">’</span>s
development: A lack of electricity (70 percent of the population has no access
to electricity), infrastructure and connectivity. These shortages not only
severely hinders residents<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">’</span> living standard, but also investment activities. To solve
these problems, both Myanmar and China support the building of the Bangladesh<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">–</span>China<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">–</span>India<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">–</span>Myanmar
(BCIM) Economic Corridor. The BCIM, consists of a network of roads, railways,
waterways, and airways, aims to improve connectivity, infrastructure, trade and
investment in South Asia. In February, Myanmar will host a BCIM talk focusing
on road connections which faces some local rejections due to fear of a large
inflow of Bangladesh Immigrants.<o:p></o:p></div>
<div class="MsoPlainText" style="layout-grid-mode: char; margin-bottom: 12.0pt; mso-para-margin-bottom: 1.0gd;">
When asked about the potential of Myanmar becoming a
test ground for China-India business collaboration, the ambassador said such
cooperation is already happening<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">—</span> The Shwe gas project, invested by
corporations or government entities from China, India, South Korea, and
Myanmar. There is also potential for cooperation between the two countries in
building the BCIM corridor. <o:p></o:p></div>
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Overall, this was a very informative talk about the
Chinese perspective in terms of doing business in Myanmar. I really appreciated
the ambassador<span style="font-family: "Courier New"; mso-ascii-font-family: Calibri;">’</span>s hospitality, approachability, and above all, candidness.<o:p></o:p></div>
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<o:p> ~Xiaoqun Dong</o:p></div>
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com0Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-5631207614392038292015-01-22T15:27:00.000-08:002015-03-16T08:44:56.949-07:00Day Four: Yangon Sightseeing and Alumni Dinner at Sakura Tower<div dir="ltr" style="text-align: left;" trbidi="on">
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Day Four <br />
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<b>Yangon Sightseeing</b><br />
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The students spent the day visiting various sights in Yangon including Shwedagon Pagoda, Kandawgyi Park, and Bogyoke Aung San Market.<br />
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Following a day of sightseeing the group reconvened for a traditional Burmese meal with SAIS alumni living and working in Yangon.</div>
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com0Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-48938734284988559712015-01-21T15:08:00.000-08:002015-03-19T11:05:37.889-07:00Day Three: US Embassy in Rangoon and Myanmar Centre for Responsible Business (MCRB)<div dir="ltr" style="text-align: left;" trbidi="on">
<br />Day Three<br /><br />US Embassy in Rangoon<br /><br />Our Wednesday morning started with a visit to the beautiful U.S. Embassy located by Inya Lake in Yangon. After going through the security checks, we walked through the manicured courtyard into a large conference room. Our meeting was with James Shea (Political/Economic Officer), Christopher Mohrman (Second Secretary - Political/Economic Section), and Jeffrey Warner (Political Officer). We were pleasantly surprised to learn that they were SAIS alums, or as they said: some of the “SAIS mafia” in Myanmar. <br /><br />After introductions, Jeffrey Warner started to talk about the political situation in Myanmar. With a specific focus on the upcoming elections in October/November 2015, Jeffrey talked us through the political timeline in Myanmar. The Myanmar Parliament was in session since Monday, and their main discussion topics included amendments to the Constitution. With respect to the upcoming elections, it was expected that by June/July, the voter’s list would be disclosed, and in August the official dates of election would be announced. The months of September and October would serve as the 60 days campaigning period. Based on the discussion, we sensed that while there are a few international organizations monitoring the process and results of the elections, it is yet to be seen whether the elections will be inclusive, particularly in regions with ethnic conflicts. <br /><br />James Shea then gave us a summary of the economic scenario in Myanmar. Since 2011/12 the country had opened up, and the government had made reforms in trade, foreign investment, and addressed issues in areas including banking, finance, corruption, and money laundering. However, the government still needs to consolidate its Foreign Direct Investment (FDI) and domestic investment laws, implement and institutionalize existing rules and regulations, and introduce new laws to address areas like intellectual property, alien workers, arbitration, labor rights, etc. The discussion also highlighted the main hurdle in Myanmar was capacity and lack of qualified human capital. While both the government and foreign investors were optimistic of economic opportunities, the country presently lacks the capacity to manage the sudden growth. This reiterated the sentiment of DICA (<a href="https://www.blogger.com/blogger.g?blogID=3536125089633439600#editor/target=post;postID=5141962230250813146;onPublishedMenu=posts;onClosedMenu=posts;postNum=4;src=postname">see entry for DICA meeting</a>), and it seems that both the US government and the government of Myanmar see a need to strengthen human capital in Myanmar's public sector.<br /><br />Christopher Mohrman then spoke to us about Myanmar’s external ties. We learnt that China has had a prominent presence in Myanmar for decades. However, since 2000, the country decided to redirect its dependency from China and strenghten its ties with other nations. There were many indicators that highlighted the change in policy, including the suspension of the Myitsone dam, renegotiation of the copper mine agreement, and the commander-in-chief’s first visit to Vietnam. While Myanmar was reducing its dependency on China it was not minimizing its external relations relations overall. We also learnt that historically, corporate social responsibility measures of Chinese companies would often come in the form of donations to charities. However, more recently, Chinese companies were making an effort to invest in the communities of their projects. For Myanmar, the U.S. brand was considered “the standard,” and the country favors American brands over other nations. Furthermore, American investors are considered to be responsible investors. With respect to foreign investors, we also got a sense that the people of Myanmar expect foreign companies to be involved with the communities, and engage extensively through corporate social responsibility. <br /><br />After hearing about Myanmar’s political, economic, and external relations, numerous questions followed, which added more insight to our knowledge and understanding of the country. The meeting at the U.S. Embassy was very interesting and we were very happy to hear a summary of the political and economic situation in Myanmar. As it was day three of our meetings, the discussion at the U.S. Embassy served as a validation of what we had heard before. After the meeting, we had a sense of what the American Embassy was doing in Myanmar, and an insight about the U.S. strategy and leverage in the country.<div>
<br />~ Neeli Shah<br /><br /><br /><b> Myanmar Centre for Responsible Business (MCRB)</b><br /><br />After paying the visit to US Embassy in the morning, our next meeting brought us to the Myanmar Centre for Responsible Business (MCRB) in downtown Yangon. MCRB is a non-governmental initiative created to encourage responsible business activities in Myanmar, and as MCRB's mission notes, the Centre "aims to provide a trusted, impartial forum for dialogue, seminars, and briefings to relevant parties as well as access to international expertise and tools."<br /><br />We met the founder of MCRB, a very elegant but decisive British lady, Vicky Bowman, who was once the British Ambassador to Myanmar. Ms. Bowman, has lived in Myanmar for several years, is fluent in the local language, and worked in the arena of responsible business within the private sector and government for many years.<br /><br />Prior to the visit, we have seen Korean and India investors in Myanmar, India diplomats, Myanmar government officials, the US embassy staff. Everyone agreed the reform in Myanmar was true and genuine. But they also raised a lot of questions regarding the challenges of the reform, especially the challenges that foreign investors are facing in Myanmar. As graduate students in a policy-oriented school, we are concerned about more than just the problems, but solutions. Vicky Bowman is the one who give us a clue about how to solve the current in Myanmar. <br /><br />“Myanmar is not an easy place to do business,” Vicky Bowman said so. First, because of the lack of transparency for Myanmar companies, foreign investors find it difficult to find capable and responsible local partners. Second, Myanmar government doesn’t have much experience in dealing with foreign investors, so there is disconnection between the government plan and the investor’s expectation. Third, the civil society in Myanmar hasn’t used to business, their understanding about business is not comprehensive, and so they are, in most cases, suspicious about foreign investors and investment projects. Last, due to the lack of rule of law, even though the new Foreign Investment Law has been passed, there are enforcement problems, especially coming to arbitration, labor protection and taxation issues.<br /><br />MCRB is working against such backgrounds, as Vicky tells us, “Myanmar Centre for Responsible Business is established for building the bridges between the private sector and the government, between the investors and civil society.” The Centre is working on monitoring the transparency of Myanmar companies, sharing updated information with public and government and providing advises for decision makers. They started from extractive industry, and is planning to move towards other sectors. Vicky and her colleagues also frequently hold and attend events, joint by government, private sectors and civil society, encouraging cooperation among three sides. <br /><br />Vicky stresses the importance of doing responsible business. She gives an example of a Chinese company, which has invested a lot in Corporate Social Responsibility (CSR), but the outcomes are not in their favor. Companies like it, who has the wish to improve their company image and their relationship with local community, have little knowledge of how to run with NGOs. Therefore, “we (MCRB) are here to help them understanding what the local community need,” Vicky says. The Centre provides a stage for the investors to engage with the civil society. In terms of the civil society, the Centre provides them with exposures to business through workshops and seminars. Vicky hopes this would help young professionals in NGOs to better know how to effectively represent their community.<div>
<br />During the Q&A part of the talk, Vicky answers several questions about looking forward to the Myanmar reform in 2015. She is very confident that the reform will continue despite of challenges brought by the coming election and constitutional amendment. She believes that Myanmar is a country with huge development potential, but the Myanmar government should quickly build up their capacity. When giving her comments on the requirement of CSR in new Foreign Investment Law, Vicky shows some worries, “it is not correct to let the investors to fill the gap [of providing general social welfare],” and she adds, ”sometimes, the companies should not take the responsibility of government.”</div>
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com0Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-51419622302508131462015-01-20T14:45:00.000-08:002016-04-19T12:18:54.349-07:00Day Two: Directorate of Investment and Company Administration (DICA) and Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)<div dir="ltr" style="text-align: left;" trbidi="on">
Day Two<br />
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<b>Directorate of Investment and Company Administration (DICA) </b><br />
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Today
our group traveled to the Directorate of Investment and Company Administration (DICA), a government entity which oversees investments and joint ventures by
foreign companies in Myanmar. The Deputy Director took an hour to sit down with
us and explain the investment landscape of Myanmar, the goals of the Myanmar
government in terms of attracting investment and protecting local Myanmar
peoples’ interests, and the challenges an organization such as DICA faces in an
emerging country's early stages of development. She was candid and truthful
about the positive changes and current obstacles she and her department encounter daily. <o:p></o:p></div>
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The
most important change to foreign investment in Myanmar is the recent change of
the Foreign Investment Law, which has made an initiative in attracting further
foreign investment and encouraging greater corporate social responsibility by those
companies. The new incentives include a longer grace period in the tax exemption
law and the ability to create joint ventures with local companies. In addition,
the new law uses a new negative approach to identify actions foreign investors
cannot take, rather than the previous method indicating actions foreign
investors can take. The assumption therefore is that anything not specifically restricted is fair game for foreign investors. In regards to further protecting the local population, the
tax exemption law excludes companies associated with poor health and
detrimental environmental practices (e.g. tobacco, alcohol, and mining).
Finally, the law includes important customs duty exemption for construction of
new commercial operations. This tax holiday has a five-year period. Overall,
the Foreign Investment Law revisions have created a more attractive environment
for foreign investors. <o:p></o:p></div>
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In terms of better labor practices, DICA is enforcing better
corporate social responsibility practices that will employ local Myanmar
citizens in projects. This includes an incrementally increasing proportion of
Myanmar skilled labor over three two-year periods. In addition, investments in
technology will lead to training local Myanmar citizens; the government has an
increased focus on vocational training. However, many of these requirements are
only in effect for companies with contracts after the introduction of the new Foreign
Investment Law revisions. Companies operating in Myanmar before these revisions
can be grandfathered-in. These new labor
laws encourage skills-transfer, which will have a greater long-term impact on
the well being of the Myanmar economy than simple investment in projects.</div>
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The
growth in foreign investment can easily be seen by the Deputy Director General
and all those working within DICA. Before 2011, DICA oversaw less than thirty
new permits a year; while today DICA processes about twenty per week. DICA
seeks technological assistance from OECD and UNTP. As FDI continues to grow,
DICA struggles to continue operations with its limited staff for support. <o:p></o:p></div>
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~Matthew Florian</div>
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<b>Republic of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI)</b><br />
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Today, our group met with officials from the Union of
Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) to discuss
international investment in Myanmar and the role of the UMFCCI in facilitating
business opportunities. UMFCCI is Myanmar’s largest not-for-profit business
federation, and it was founded in 1919. UMFCCI acts as a bridge and voice
between the government and private sector, and provides various services to its
members.<o:p></o:p></div>
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The UMFCCI has the following objectives:<o:p></o:p></div>
<div class="MsoListParagraphCxSpFirst" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To participate in the implementation of the Four
Economic Objectives of the State<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To accelerate the pace of economic development<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To safeguard the economy for the State and
National people<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To cooperate with the State in economic and
social activities<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To lead and cooperate with the business
associations<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To act as a bridge between the State and private
sector<o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To support for more competitiveness of SMEs and
SMIs <o:p></o:p></div>
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<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To lead Myanmar business community into
globalized economy<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To develop commerce, production and services to
global standards<o:p></o:p></div>
<div class="MsoListParagraphCxSpMiddle" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To act as independent NGO<o:p></o:p></div>
<div class="MsoListParagraphCxSpLast" style="margin-left: 39.0pt; mso-add-space: auto; mso-list: l0 level1 lfo1; text-indent: -.25in;">
<!--[if !supportLists]--><span style="font-family: "symbol"; mso-bidi-font-family: Symbol; mso-fareast-font-family: Symbol;">·<span style="font-family: "times new roman"; font-size: 7pt; font-stretch: normal;">
</span></span><!--[endif]-->To disseminate information and knowledge in
regards to global standards in commerce<o:p></o:p></div>
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UMFCCI is working together with 71 affiliated associations,
such as regional and state chambers of commerce and industry. The organization
aims to diversify and intensify its activities towards achieving the state’s
goal of simultaneously developing a modern industrial sector along with the
agricultural sector, in order to achieve rapid development, poverty
alleviation, and establish a modern, prosperous, developed nation.<o:p></o:p></div>
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Officials from UMFCCI told our group that Myanmar has a long
ways to catch up, given their recent bloody history and subsequent
international sanctions. Australia and the European Union have totally lifted
sanctions, whereas the United States has suspended sanctions.<o:p></o:p></div>
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The UMFCCI officials are emphasized that education will play
a key role in bridging the economic gap between Myanmar and its ASEAN
neighbors. In particular, there are plans to ramp up vocational training in
Myanmar.</div>
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~Margaux Fimbres <o:p></o:p></div>
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com0Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-49441619363744302972015-01-19T14:38:00.000-08:002015-03-18T13:04:07.851-07:00Day One: Daewoo, Burmese Lunch, and TATA<div dir="ltr" style="text-align: left;" trbidi="on">
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<span style="font-family: Times, Times New Roman, serif;">Day One</span></div>
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<span style="font-family: Times, Times New Roman, serif;"><br /><b>Daewoo</b></span></div>
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<span style="font-family: Times, Times New Roman, serif;">After
enjoying the wonderful breakfast at the Chatrium Hotel in Yangon, we headed off
in our gigantic bus to meet Daewoo International Corporation. Everyone was very excited to enter into our
first meeting and a bit anxious to see how these meetings would proceed. <o:p></o:p></span></div>
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<span style="font-family: Times, Times New Roman, serif;">Daewoo
International Corporation is Korea’s largest trading company and a subsidiary
of POSCO (Pohang Iron and Steel Company), a multinational steel making company
based in Korea. Mr. Si Bo Joo, the executive vice president and managing
director of the My<span style="background-color: white;">anmar branch, gave a wonderful presentation of their gas
production journey in Myanmar also known as ‘The <span style="background-attachment: initial; background-clip: initial; background-image: initial; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial;">Shwe</span> Proje</span>ct.”
He went on to talk about some of the technical aspects of drilling,
production, and transfer into the main pipelines. </span></div>
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<span style="font-family: Times, Times New Roman, serif;">Interestingly, he also discussed
how the contract with the Chinese company, SEA Gas Pipeline Corporation
receives 80% of the total sales volume of gas, and only 20% goes into the
domestic market. From the first gas produced in 2013 of 200 million standard
cubic meters per day to 500 <span style="background: white; color: #252525;">MSm<sup>3</sup>/d</span>
in 2014. The share of gas will not increase over time unless they are able to
find more sources and increase their current capacity. The off-shore gas is
transferred from the west Myanmar to west China through a 792.5 kilometer
pipeline. <o:p></o:p></span></div>
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Daewoo’s serious intent in their promotion of CSR. Since starting their project
in 2000, they have invested 4.2 million USD on socio-economic programs that
have mainly been distributed in health and education. He also mentioned they
are environmentally conscious and have participated the Mangrove restoration
near the coast that also protect the people from cyclones such as Cyclone
Nargis in 2008 that devastated Myanmar with approximately 100,000 deaths.<o:p></o:p></span></div>
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<span style="font-family: Times, Times New Roman, serif;">Although mainly rich in gas, Myanmar
will play a pivotal role in the oil industry by transferring Middle Eastern oil
to China through a oil pipeline paralleled with the gas one. Currently they are
going through the Strait of Malacca and will save companies for transportation
costs.<o:p></o:p></span></div>
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<span style="color: #222222;"><span style="font-family: Times, Times New Roman, serif;">As the meeting was
concluding, Mr. Joo gifted all of us a beautiful glass paperweight that had a
figure of the gas rig in Swe. This was a very informative meeting and a great
start to the week, and we headed back to the bus.</span></span></div>
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Back on the bus, the gigantic bus and Yangon traffic combined did not help our
travels. The local infrastructure changes and increase in tourism has made the
traffic in Yangon very congested but after arriving at a local Burmese
restaurant, we had our choice of many different dishes including prawns,
chicken, mutton, and vegetable dishes. We
had our fill and the food was fantastic and definitely worth the wait. <o:p></o:p></span></span></div>
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<span style="color: #222222;"><span style="font-family: Times, Times New Roman, serif;"><b>Traditional Burmese Lunch</b></span></span><br />
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<span style="color: #222222;"><span style="font-family: Times, Times New Roman, serif;"><b>Tata International</b></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222;">After a hearty Burmese
lunch, we spent a couple of hours at the Junction Square Shopping Centre,
Myanmar's largest mall. The group split off to explore the shops, sample some
desserts at the food court, and play arcade games--Margaux and Matt entertained
a few local children with their dance moves on the Dance Dance Revolution mat.
We left the mall in the late afternoon to head to our next meeting, which was
with Sunil Seth, the Myanmar Country Head for Tata International. Mr. Seth
provided us with an informative and detailed brief on the state of business,
trade, and infrastructure in Myanmar. Mr. Seth has been with the Tata Group for
three decades in Asia and in Europe, and he has witnessed the changes taking
place in Myanmar since assuming his current role two years ago.</span><span style="color: #222222;"><o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222;">Tata has identified
Myanmar as one of three key target markets for investment, along with Indonesia
and Vietnam. Myanmar has traditionally been an exporter of agricultural goods,
including pulses and rice. In recent years, exports of pulses--mainly to
India--have continued, but both the quantity and quality of rice produced has
decreased. Tata is involved in the export of pulses, selling branded Burmese
pulses at its retail markets in India. Mr. Seth noted that despite the recent
downturn in rice production, the country has the potential to modernize
production techniques and once again become a competitive rice exporter.</span><span style="color: #222222;"><o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222;">Tata's most
significant investment in Myanmar, however, is a coal power plant currently
under development in Pathein. The plant, which is expected to produce 1,320
megawatts of power annually, is expected to cost $3 billion, and it represents
the largest single Indian investment in the country. The current power
infrastructure is inadequate, however, and severe irregularities in pricing are
disrupting the market. Tata, along with other Indian companies and Thai
companies, are advising the Myanmar government on developing a uniform power
purchase agreement, which would standardize power pricing, and Chinese
companies are focusing on upgrading and expanding the power grid. In addition
to its agricultural and power investments, Tata operates an automobile assembly
plant near Mandalay. Tata struggles to compete on price with used Japanese
cars, but Tata is better positioned in the market for commercial vehicles.</span><span style="color: #222222;"><o:p></o:p></span></span></div>
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<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222;">Mr. Seth has been
impressed with the progress made in Myanmar over the last few years. The
country has been cut off from the modern management best practices developed and
used abroad for the past fifty years, and, as a result, decision-making is
still too concentrated at the top of the government hierarchy. Nonetheless, in
Mr. Seth's view, the government has been effective in implementing its reforms
over the past two years, and the administration has been receptive to input
from the private sector. Mr. Seth is optimistic that the rate of progress will
continue, and he expects the (currently small) middle class to expand fairly
rapidly, paralleled by increased retail and access to consumer goods.</span><span style="color: #222222;"><o:p></o:p></span></span></div>
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</span><span style="color: #222222; line-height: 115%;">We thanked Mr. Seth
for meeting with us and for answering all of our questions, and we headed back
to our hotel to unwind after a productive day.</span><o:p></o:p></span><br />
<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222; line-height: 115%;"><br /></span></span>
<span style="font-family: Times, Times New Roman, serif;"><span style="color: #222222; line-height: 115%;">~Udit Banerjea</span></span></div>
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com1Yangon, Republic of the Union of Myanmar16.780833 96.14972216.294674500000003 95.504274999999993 17.2669915 96.795169tag:blogger.com,1999:blog-3536125089633439600.post-18597540875374039092015-01-18T02:18:00.000-08:002015-03-16T08:47:15.341-07:00Chinese and Indian Investment in Myanmar: SAIS Study trip to Yangon<div dir="ltr" style="text-align: left;" trbidi="on">
<span style="background-color: #fafafa; color: #333333; font-family: 'Helvetica Neue Light', HelveticaNeue-Light, 'Helvetica Neue', Helvetica, Arial, sans-serif; font-size: 14px; line-height: 19.6000003814697px;">Dear Readers,</span><br />
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From January 19-25, 2015, the <a href="http://www.sais-jhu.edu/programs/sas" style="-webkit-transition: color 0.3s; color: #009eb8; display: inline; outline: none; text-decoration: none; transition: color 0.3s;">South Asia Studies Program of The Johns Hopkins University Paul H. Nitze School of Advanced International Studies</a> (SAIS) will be sponsoring a study trip to Yangon, Myanmar where twelve graduate students will be exploring the topic of Chinese and Indian investment in Myanmar. The trip participants are students in Gregory Knight and Dr. Walter Andersen's Rise of India and China course offered in the Fall of 2014. To learn more about what the students are seeing and experiencing on the study trip stay tuned over the course of the week to the various blog posts from the participants themselves.</div>
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Meet the Student Participants!<br />
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Udit Banerjea, South Asia Studies, SAIS<br />
Kevin Cottrell, Southeast Asia Studies, SAIS<br />
Xiaoqun Dong, Energy, Resources and the Environment, SAIS<br />
Eleanor Doong, Energy, Resources, and the Environment, SAIS<br />
Yiyi Fan, Southeast Asia Studies, SAIS<br />
Margaux Fimbres, Energy, Resources and Environment, SAIS<br />
Matthew Florian, China Studies, SAIS<br />
Elizabeth Heller, International Development, SAIS<br />
Neeli Shah, Energy, Resources and Environment, SAIS<br />
Emily Tang, China Studies, SAIS<br />
Shrey Verma, South Asia Studies, SAIS<br />
Sharon Yoo, South Asia Studies, SAIS<br />
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Sincerely,</div>
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Rebecca Aman, South Asia Studies Program Manager<br />
Gregory Knight, SAIS Adjunct Faculty<br />
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Study Trip Leaders<br />
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becca.amanhttp://www.blogger.com/profile/12032282774901668485noreply@blogger.com0