Vietnamese investment in Myanmar

Vietnam has been investing in Myanmar since the early 1990s when the country began to open up to the outside world after decades of isolation. Myanmar is a key market for Vietnam in Southeast Asia, and the two countries have strong economic ties.

Vietnamese investment in Myanmar has been growing steadily in recent years. In 2015, Vietnam was the fifth-largest investor in Myanmar, with total investment of US$1.04 billion, according to Myanmar’s Directorate of Investment and Company Administration.

Vietnamese companies have been active in a wide range of sectors in Myanmar, including agriculture, forestry, fisheries, mining, construction, power, manufacturing, and tourism.

Some of the largest Vietnamese investors in Myanmar include the Vietnam Oil and Gas Group (PetroVietnam), which has invested in oil and gas exploration and production; the Vietnam National Textile and Garment Group (Vinatex), which has invested in a garment factory; the Vietnam National Coal and Mineral Industries Group (Vinacomin), which has invested in coal mining; and the Vietnam National Chemical Group (Vinachem), which has invested in a fertilizer factory.

Vietnam’s investment in Myanmar has been motivated by a number of factors, including the country’s strategic location, its large market potential, and its rich natural resources. Myanmar is an important transit country for Vietnamese goods bound for India and other markets in South Asia and the Middle East.

In addition, Myanmar offers investors a number of attractive investment opportunities, including a young and rapidly growing population, a large untapped market, and a number of infrastructure projects that are being implemented as part of the country’s economic development plans.

The Vietnamese government has also been supportive of Vietnamese companies doing business in Myanmar. In 2015, the two governments signed a Memorandum of Understanding on Economic and Trade Cooperation, which includes a commitment to promote investment and trade between the two countries.

Despite the strong economic ties between Vietnam and Myanmar, there are a number of challenges that Vietnamese companies face when doing business in the country. These include a lack of transparency and predictability in the regulatory environment, a lack of skilled labor, and infrastructure constraints.