In 2019-20 fiscal year, the power production sector, oil and gas sector and logistics sector are likely to see a massive inflow of foreign direct investments, said U Aung Naing Oo, Permanent Secretary of the Ministry of Investment and Foreign Economic Relations.
“In 2019-20 FY, the first promising sector is electricity production and power plants. The second is oil and gas sector. The third is logistics sector. It is linked to the jetty projects. This year, the Customs Department may issue the notification on bonded warehouse. Thanks to the issuance of such notification, the logistics industry has a better prospect,” U Aung Naing Oo added.
From 1988 till November, 2019, 50 countries invested around 83 billion US dollars in 1,876 businesses in 12 economic sectors, according to the Directorate of Investment and Company Administration.
A total 23 foreign businesses invested over 21 billion US dollars in the electricity and energy sector, accounting for over 26 per cent of the total FDI.
The oil and gas sector accounts for over 27 per cent of the total FDI, with an investment of over 22 billion US dollars by 154 foreign businesses.
The FDI in the transport and communication sector by 61 businesses reached around 11 billion US dollars, representing over 13 per cent of the total FDI.
The maximum power demand is estimated to reach around 5,000 MW, in the coming summer. The ministry is implementing seven power supply projects to produce additional 1,000 MW, said U Khing Maung Win, Deputy Minister for Electricity and Energy.
The country’s annual power demand is increasing at a rate of around 19 per cent. The ministry can fully satisfy the country’s increasing power demand only when it can lay down short-and long-term plans, Union Minister for Electricity and Energy U Win Khaing said.
Under the National Electrification Plan (NEP), the ministry has set a goal of electrifying the whole country by 2030.
At Myanmar-Korea Investment Promotion Seminar, Dr. Myo Nyein Aye, Deputy General Manager of the Ministry of Transport and Communications said 60 per cent of railroad tracks and highways have low quality. The transportation cost can be reduced to around 30 per cent only when around 60 billion US dollars is invested.
