The head of the Japan External Trade Organization has voiced
expectations that the rise of a middle class in Myanmar will boost
opportunities for Japanese businesses in the country.
JETRO Chairman Hiroyuki Ishige, who recently hosted a tour of a new
industrial estate in Yangon for Japanese companies, said Myanmar is
attractive as an investment destination because of its high literacy
rate and cheap labor costs compared with neighboring countries.
Myanmar is designated by the United Nations as one of the least
developed countries in the world, but the expansion of its middle class
"could spur the nation's consumer market," he said in a recent
interview.
"I got the impression that many (Japanese) companies were seriously thinking about investing" in Myanmar, Ishige said.
During the tour of the industrial estate on the outskirts of Yangon,
many participants asked questions, such as the type of fuel to be used
for private electricity generators in case of power outages, he said.
Asked about the challenges in doing business in Myanmar, Ishige cited
the lack of an adequate power supply and water services, chronic traffic
congestion and difficulties in transporting workers to company offices.
Blackouts are frequent in Myanmar and factory operators are required to
prepare in-house power generation systems, said Ishige, a former vice
economy, trade and industry minister for international affairs who was
appointed chairman of JETRO last year.
In selecting business partners in Myanmar, where economic sanctions
imposed by the West have been substantially eased, Ishige advised
Japanese companies to consult with Myanmar government officials to
examine potential partners' trustworthiness.
Myanmar, which is rapidly democratizing after years of military rule, is
considering releasing a list of local companies that have potential to
become partners of foreign businesses, he said.
Source: Japan Times
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