Tập đoàn ASV Holdings

Foreign Direct Investment (FDI) in this country has still been very limited at fifteen billion dollars only. Currently, agriculture, cattle breeding, fisheries and forest products account for 50% of Gross Domestic Product ( GDP) of Myanmar and 35% of the country’s foreign currency revenues playing an important role in the national economy. Import-Export turnover is still at low level. In 2008, total export turnover of Myanmar amounted at 6.6 billion dollars and 3.8 billion dollars for that of import only. In 2009, impacted by the global economic crisis, the total value of Export and Import are only of 6.3 billion USD and 3.8 billion USD respectively. Myanmar exports goods to 85 markets and imports goods from 115 markets all over the world.

In contrast with the small economy mentioned above, Myanmar has considerable jealous natural resources for development. Myanmar has total area of 676.577km2 (double of Vietnam) at importance geographic location, in which 50% are mountainous areas having huge timber resources as teak, cam-xe, trac, gu... with known quality. In addition, Myanmar has big reserves of oil and gas (explored reserves ranked 11th in the world) and abundant mineral resources as pearls, gemstones, copper, nickel, tungsten, granite, gold, silver...

Having a population of nearly 60 million with lowest average income in the world, the Myanmar weak production industry has not met domestic demands. Therefore, import demand for many goods is increasing. Most of consumer goods are imported via small border with China, Thailand, India with low quality. In recent years, Vietnam has exported some products to Myanmar, but they just accounted small market share in compare with that from other countries for instance: electrical and electronic products (0.5%), clothing materials(1.3%), steel (1.4%), plastics and plastic products (0.2%), chemicals (0.4%), food(1.6%). Moreover, other high demand products as drug and medical equipment, tire and types, electric meter, spare parts, building materials, pesticides, cosmetics, fertilizers, agriculture - fishery tools have not yet been introduced to this market by Vietnamese enterprises.

To clear business difficulties and create bilateral economic cooperation between 2 countries, Vietnam’s Government and Ministries have carried out practical activities. In 2009, the Ministry of Industry and Trade of Vietnam and the Ministry of Trade of Myanmar had conducted joint meetings on Trade and had some cooperation agreements under new situation. Trade workshops between the two countries enterprises have also been held in Hanoi, Ho Chi Minh City ( Vietnam) and Yangon ( Myanmar).

Especially, the Asia - Pacific Market Department, Ministry of Industry and Trade of Vietnam in cooperation with the Vietnam Commerce Trade Promotion Agency and other concerned agencies of both countries organized the Vietnam - Myanmar International Trade Fairs from 19 to 22 November 2009 in Yangon. Participating the Fairs are 51 Vietnam’s enterprises and 10 Myanmar enterprises with 82 stores total. During the Fairs’ time, a Business Forum was held with the participation of over 200 enterprises from both countries. This is the first foreign fairs allowed to held in Myanmar since 2005, so it attracted great attention from Myanmar people and other countries’ diplomatic delegation in Yangon. In general, as per participants’ assessment, the Vietnam - Myanmar International Trade Fairs 2009 was efficient and successful. According to preliminary reports by participating enterprises, there had about 3,000 transactions (not including visitors), of which over 130 representatives from potential companies of Myanmar had directly discussed and signed import agreements, many enterprises found distributing agents in Myanmar market. Estimated contracted value mounted about USD 3 million. Direct sales of good sat the Fairs also gained considerable success. In fact, the Fairs ended in the afternoon of November 22, 2009 but stock sold out in morning of November 22 with total estimated value of over USD 500,000.

From early 2010, Vietnam-Myanmar investment seminars have positively held by two countries in Myanmar capital Nay Pyi Taw and Yangon city with participation of numerous enterprises from two countries. Along with that, a series of events such as the direct flights Hanoi- Yangon opened by Vietnam Airlines, new branch of BIDV opened in Myanmar....Thereinafter, 2010 will be the year for strong growth in economic and trade relations between Vietnam and Myanmar.

To affirm and promote strong economic and trade cooperation between the two countries, the Vietnam Prime Minister Nguyen Tan Dung is expected to have an official visit to Myanmar from April 2 to April 4, 2010. By this event, Ministry of Industry and Trade of Vietnam is coordinating with the concerned Ministries and authorities of the two countries to actively prepare for the Vietnam Goods Fairs in Myanmar 2010 which will beheld in Yangon from April 3 to April 6, 2010. It is estimated to have participation from 60 enterprises and over 80 booths of garment industry, leather shoes, cosmetics, pharmaceuticals, mechanical, electrical, electronics, chemicals, raw and processed foods. The Ministry of Industry and Trade of Vietnam has submitted the Government plans for the Fair and supports for participating enterprises including booth cost (100%), overall decoration cost (100%), advertising cost (100%) and two return air tickets (Hanoi/Ho Chi Minh City to Yangon) for each participating enterprises.

Translated by Minh Dan