The underdeveloped infrastructure of Chin State, Myanmar’s poorest province in terms of per capita income, could turn into enormous opportunities for local and foreign investors if they are well-prepared, according to a report entitled “Local Business Development in Chin State: Opportunities and Challenges” recently launched by Gender and Development Institute.
Min Zaw Oo, director of Chin State at the Directorate of Investment and Company Administration, said at the launch of the report on Wednesday investors should not hesitate to invest in Chin State where a number of golden opportunities await. He considers power production, hotels and tourism, organic farming and traditional weaving industry, and urban development as the “most promising” areas for large scale investment.
“Investors should take early bird opportunities to ensure massive returns in the long run. Chin State is definitely a good choice for investors because they can enjoy tax exemption for seven years, which is much longer than investing in developed regions like Yangon and Mandalay,” he said.
According to the official, the Union government has given the priority to attract investments in Chin State which is yet to receive any foreign direct investment (FDI). Local investment in the province is still less than expected, though a lot of investors have shown their interest thanks to regulatory privileges in a bid to promote investment for sustainable development there, he said.
“Investors cannot expect commercial profits within a few years but I am sure they will be happy in the longer term. We cannot deny that it is a less populated province which takes time to go from one place to another. But, the fact itself creates big opportunities for infrastructure projects and transportation-focused companies,” he said.
He stressed the importance of hard work in improving road accessibility, more investment in power supply, better accommodation policies and strengthening the private sector.
“We now have Chin State investment strategy framework in place, and will make potential investors aware of that. The private sector needs to be stronger and proactive to cooperate with us,” he said.
“For the development we want to see in Chin State, there is no other way except attracting investment.”
The official pledged to ensure timely and faster departmental support to make doing business easier in Chin State by reducing some unnecessary red tape.
Ceu Hlei Lian, president of Chin State Chamber of Commerce and Industry, warned not to underestimate the collective investment of local small and medium enterprises (SMEs). He urged the authorities to encourage SMEs development in the State.
“When it comes to investment, we should not think of FDI and large scale investment only. We need to empower local SMEs so that they will come and do business here. This is the only way to move Chin State forward,” he said.
Min Zaw Oo was quick to respond to Lian’s suggestion, saying that the government has established SMEs zones in different townships of Chin State to ensure inclusive growth in the province. Success stories of the zones include coffee plantation and a community-based tourism project in Tonzang and Tedim townships, traditional weaving and organic farming in Hakha, Falam and Thantlang, avocado and coffee plantation in Matupi, Mindat and Kanpetlet. Feasibility studies are under way to commercially produce mango and bamboo in Paletwa and Sami.
Funded by Amercian Friends Service Committee (AFSC), the report provides some suggestions for the government including the urgent need to create job opportunities and to improve women’s participation in businesses. Thomas Donnelly, AFSC’s country representative for Myanmar, said the report is an important contribution to the authorities to ensure inclusive growth in Chin State.
“For any country, its main asset is people. It is good for everyone when social inequality is reduced and investment can be as inclusive as possible,” he said.
“Myanmar has a lot of longstanding conflicts. If investment is not inclusive and favours one group over another, it could make conflicts worse. So, it is very important for investment to be inclusive.”
He suggested cooperating with the private sector to ensure a win-win situation, and thereby positive contributions to the economy at large.
