State Administration Council Chairman Prime Minister Senior-General Min Aung Hlaing addressed the gathering of China-Myanmar business leaders at HUALUXE Kunming Hotel in Kunming, People’s Republic of China, yesterday.
Trade and investments between two countries and their peoples are a strategic drive towards the future that the two countries desire
Speaking at the event, the Senior General expressed gratitude for having an opportunity to address the gathering, saying the China-Myanmar Pauk Phaw relationship will reach a diamond jubilee soon, and it can see positive communication along with strong mutual understanding among the peoples of the two countries, business industries and governments. Moreover, trade and investment of two countries and their peoples is a strategic drive to move forward the future that the two countries desire.
He continued that Myanmar is an agricultural country strategically located between China and India, in a focal area with a large market and in the fast-developing ASEAN region. Moreover, the country possesses fine weather and land areas for agriculture. It has more than 65 million hectares of farmland, among the highest in Southeast Asia. However, plantations are done only in 20 per cent of farmland. Therefore, virgin farmlands with fine fertilizer and not exposed to chemicals are opportunities for investors and also for those who want to run agriculture-based livestock breeding businesses.
He added that advanced technologies and biotechnology are widely used in China’s agricultural sector, and the country invites enhanced cooperation with partner business people to transfer technology through investments, produce suitable agrarian products, and ensure value-added food safety that can also sustain the ecosystem.
He then highlighted the agricultural sector of Myanmar and the need to manufacture chemical fertilizers, natural fertilizers, and insecticides. He also invited investors to promote the farm machinery sector.
He underscored that modern technologies are used to breed chickens, pigs, and cows, and plans are underway to operate frozen meat production processes. The neighbouring countries like Bangladesh and India have large food markets despite their large population. The country intends to produce value-added products from the agriculture and livestock breeding sectors, promoting the agricultural sector to mechanized farming. Therefore, the government supports the needed assistance to facilitate investments in agriculture and livestock breeding sectors for foreign investors.
He also clarified that cultivation of essential industrial crops such as cotton and rubber are expanded to ensure the value-added products in agriculture and livestock breeding sectors. There are many lands in the country where cotton can be planted, and rubber plantations are being made with short- and long-term plans. Moreover, the country emphasizes the wood-based furniture industry, veneer, plywood, chipboard, and sawn timber production industries, and it encourages the production of quality thread, rubber, and rubber-based furniture.
He mentioned the regions where bamboo and cane can be easily grown, as well as the need for technology and market information exchange and cooperation to develop the private wood-based industries in accordance with the country’s market-oriented policy.
He then highlighted the opportunities in cement manufacturing sectors as the country cannot produce adequate cement locally. He talked about the plenty of raw materials for cement production in the country. He also urged the business people to invest in solar power generation and hydropower sectors, as well as EVs in Myanmar.
The Myanmar Investment Commission will prioritize fertilizer production, EV assembly, cement production, steel, value-added agricultural and breeding products, medicine and medical supplies and palm oil production.
He also briefed the foreign investment in Myanmar between 1988 and September 2024, amounting to US$93.38 billion in 12 sectors. It is 0.48 per cent in agriculture, whereas 1.04 per cent in livestock breeding and marine sectors. Among them, China makes more than $18 million in investment in agriculture and over $53.105 million in livestock breeding and marine sectors. Therefore, Chinese businesspeople should make more investments than before to achieve proper achievement in the agriculture and livestock breeding sectors. Moreover, the two countries traded over $8,000 million in the export and import sectors in the 2023-2024 financial year. That is a sign of solid trading between the two countries. Moreover, Myanmar is located between the most populated countries, such as China, Bangladesh, and India, so the nation has the potential to upgrade and produce food and other commodities.
He continued that Myanmar mainly exports rice, beans, pulses and sesame, wood, teak and finished wood products to China. The country keeps making efforts to distribute value-added wood-based products in local and foreign markets. Therefore, the trading and investment between the two countries should be enhanced, and the country should offer benefits and tax reliefs for the partner business people.
Regarding the transport and essential infrastructure sectors, the country is located in focal areas of South Asia, South East Asia, and China, and it creates a gateway to the Indian Ocean for China. Therefore, the country has the potential for transport and primary infrastructural sectors.
He then mentioned the activities of the country under RCEP that entered into force between China and Myanmar on 1 May 2022, the release of the RCEP form and insurance document starting 1 November 2022, and other opportunities to get production under China-Myanmar investment agreement, ACFTA and Myanmar Investment Law in addition to the RCEP agreement
Moreover, he talked about the payment method for trading and money transfer at the border, such as the yuan-kyat direct payment, and added that investments can be made in the Chinese yuan.
He also clarified the unique opportunities to invest in Myanmar as the eight priorities of China-led Global Development Initiatives (GDI) include suitable sectors for Myanmar, and the country will mainly promote manufacturing and competitive power through innovation under the agricultural development strategy and investment plan. Therefore, businesspeople should work together in research development and technology distribution sectors.
Concerning the armed conflicts at the China-Myanmar borders, terrorists neglect the invitation of the government to peace and political dialogues and intentionally make efforts to affect the border stability. Moreover, they initiated actions to mislead China over Myanmar, luring interests in political and military means. He then mentioned insurgents who activated the war lord policy operating drugs, smuggling and illegal businesses in border areas in the past. Moreover, they activate such policies for the reasons of democracy and race. Bilateral trade directly benefits the socioeconomic status of the people of the two countries; thus, all should cooperate to resume trading, ensuring the stability of border areas.
Chinese businesspeople who want to invest and already made investments in Myanmar raise questions and coordinate the discussion
The Chinese businesspeople raised questions regarding potential investments in Myanmar, conditions to create a green environment while conducting the projects, efforts of the Myanmar government to solve the challenges in the investment sector, potential investments for companies, import and export policies of Myanmar, bilateral trade pathways, investment in the production of fertilizers from charcoal and benefits for Myanmar people from that project. They thanked the Senior General for providing relevant answers.
Relevant Union Ministers make replies
Union Minister for Investment and Foreign Economic Relations Dr Kan Zaw and Union Minister for Energy U Ko Ko Lwin clarified the power consuming system and the use of renewable energy in Myanmar, long-term plan for power generation, low-risk investments, relief in import and export policies, supervision on foreign exchange and local commodities prices by organizing committees, systematic control on rising foreign exchange rate due to sanctions on finance of western group, kyat-yuan, kyat-baht and kyat-rupee direct payment for border trade, charcoal to fertilizer production, and field study for that production processes.
Senior-General makes replies
The Senior General then mentioned renewable energy – hydro, solar, and wind- and Myanmar can successfully generate solar energy as it has a hot climate. Therefore, the investments made in the hot regions can be successful, and the power generated by solar energy can improve the environment. Moreover, environmental conservation can be conducted without fail while implementing hydropower projects.
Moreover, he pledged that the government would protect the investors in various sectors in pursuit of the country’s rules and regulations. He warmly welcomed the Chinese investors.
After the meeting, the Senior General cordially greeted Chinese and Myanmar investors and business leaders and had lunch, which UMFCCI hosted.
MNA/KTZH
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