By Nikki De Guzman:
A new study found that Thai businessmen might now find it more challenging to invest in Myanmar because of concerns over increasing land and labour costs.
Conducted by the University of the Thai Chamber of Commerce’s Centre for International Trade Studies (CITS), the study revealed that foreign direct investment (FDI) into Myanmar will expand by 200 to 400 percent in 2015, three years after the Asean Economic Community is implemented.
This will create stiff competition between foreign players eyeing to set foot in the country, with those that have more cash landing first.
Hence, the Thai government can arrange with the Myanmar government to help Thai investors and traders take their share easier.
“Because of rising labour and land costs in Myanmar, fewer Thai entrepreneurs will be able to invest in that country. The government should negotiate for the reduction of some difficulties to promote more Thai investment, especially increasing opportunities for small and medium-sized enterprises,” noted CITS director Aat Pisanwanich.
In 2012, Thailand was second biggest foreign investor in Myanmar, with combined investment value of US$9.56 billion (THB282.7 billion).
Meanwhile, the CITS study revealed that wages in Yangon have spiralled from THB120 to THB150 per day— but will likely rise further to THB250 by 2015. Land cost, on the other hand, will grow by 200 to 300 percent.
However, a number of business opportunities across different sectors in the country are open for Thai investors, the study added. Thai traders keen on investing should urgently explore these opportunities in order to be ahead of the completion with other foreign players, said Aat.
Nikki De Guzman, Junior Reporter at PropertyGuru, wrote this story. To contact her about this or other stories email nikki@allproperty.com.sg
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