Thai businesses eyeing investments in Burma

Investors from many Thai sectors are looking to Burma, with its low operating costs, abundant natural resources and large market, according to the Thai-Myanmar Business Council.

Representatives of Burma's private sector visited the council in recent weeks to lobby Thai industries to establish manufacturing plants in the country, whose official name is Myanmar, said Thai-Myanmar Business Council Santi Vilassakdanont. Promising sectors in Burma include food processing, agriculture-related industries, consumer products and garments, he said.

Burma will hold a general election at the end of this year. It is expected that the new Burmese government will establish investment incentives aimed at foreign businesses.

"Burma has been opening its country to foreign investment since member nations agreed to implement the Asean Economic Community by 2015. Asean will become a single market under this agreement, and Burma does not want to be left behind. We're cooperating closely with the private sector in Burma," Santi said.

Moreover, Burmese authorities want to create jobs. At present, many Burmese labourers work in Thai manufacturing plants on the countries' border. It makes sense for the Burmese to encourage these people to work in their home country, he said.

The Thai-Myanmar Business Council plans to take a delegation, including about 20 Thai businesspeople, to Burma next month, Santi said. During the visit, the two countries will sign a Memorandum of Understanding (MoU) securing the supply of certain Burmese agricultural products to the Thai food-processing industry, as well as garment exports from Thailand to Burma.

Thai manufacturers will also be given opportunities to meet and establish relationships with Burmese businesspeople.

Santi said he had also received expressions of interest from representatives of firms in such heavy-industry sectors such as steel and cement, as well as from the energy industry, about investing in Burma.

Other countries, including China and Singapore, are also looking for investment opportunities in Burma. Santi said Thailand needs to take advantage of its geographical proximity to Burma and its historical ties with the country's people.

"Thai industries should pay more attention to investing in Burma as the operating costs in that country, such as labour and land costs, are lower than in Thailand. Besides, the investment regulations in Burma are less stringent than in our country right now. We don't know yet when the Southern Seaboard project will be ready for new investment," he said.

The Thai-Myanmar Business Council was set up in February this year as collaboration between the Federation of Thai Industries (FTI), the Thai Chamber of Commerce and the Thai Bankers Association. Santi, who is a former chairman of the FTI, is the first chairman of the council.