Chairman of State Administration Council Prime Minister Senior General Min Aung Hlaing Delivers a Speech at Gathering of China-Myanmar Investment and Entrepreneurs

Chairman of the State Administration Council (SAC) Prime Minister Senior General Min Aung Hlaing delivered a speech at gathering of China-Myanmar Investment and Entrepreneurs at HUALUXE Kunming Hotel in Kunming, People’s Republic of China, on 5 November.

The following is the speech delivered by the SAC Chairman Prime Minister Senior General Min Aung Hlaing at the event:

• The China-Myanmar Pauk Phaw relationship will reach a diamond jubilee soon, and it can see positive communication along with strong mutual understanding among the peoples of the two countries, business industries and governments.
• Moreover, trade and investment of two countries and their peoples is a strategic drive to move forward the future that the two countries desire.
• Myanmar is an agricultural country strategically located between the world’s most populous China and India, in a focal area with a large market and in the fast-developing ASEAN region.
• Myanmar has more than 65 million hectares of farmland, among the highest in Southeast Asia. However, plantations are done only in 20 per cent of farmland. Therefore, virgin farmlands with fine fertilizer and not exposed to chemicals are opportunities for investors and also for those who want to run agriculture-based livestock breeding businesses.
• Advanced technologies and biotechnology are widely used in China’s agricultural sector, and the country invites enhanced cooperation with partner business people to transfer technology through investments, produce suitable agrarian products, and ensure value-added food safety that can also sustain the ecosystem.
• He is striving for shaping Myanmar as a country capable of primarily producing foods in the world by utilizing agriculture and livestock sound foundations endowed by the nature.
• Myanmar needs agricultural techniques, fertilizer production, natural fertilizer production, plant medicines and pesticides for enhancement of agricultural products. There are many companies and organizations which contact the Myanmar government to invest in these sectors.
• So, businesspersons are invited to invest in modern machinery and warehouse activities for agricultural tasks to accelerate the mechanize agriculture.
• Modern technologies are used to breed chickens, pigs, and cows, and plans are underway to operate frozen meat production processes.
• The neighbouring countries like Bangladesh and India have large food markets despite their large population.
• The country intends to produce value-added products from the agriculture and livestock breeding sectors, promoting the agricultural sector to mechanized farming. Therefore, the government supports the needed assistance to facilitate investments in agriculture and livestock breeding sectors for foreign investors.
• Cultivation of essential industrial crops such as cotton and rubber are expanded to ensure the value-added products in agriculture and livestock breeding sectors. Purpose has been set to produce threads and textile from cotton.
• Moreover, the country emphasizes the wood-based furniture industry, veneer, plywood, chipboard, and sawn timber production industries, and it encourages the development of the production of quality thread, rubber, and rubber-based furniture.
• The regions where bamboo and cane can be easily grown. Moreover, furniture and utensils will be produced with the use of bamboo and rattan to distribute them as value-added products to the domestic and international markets.
• The country emphasizes the need for technology and market information exchange and cooperation to develop the private wood-based industries in accordance with the country’s market-oriented policy.
• As Myanmar cannot produce cement at home sufficiently for construction of infrastructures to develop Myanmar, many opportunities can be seen in production of cement.
• Myanmar has plentiful of raw materials for cement production such as lime, gypsum and common quartz. Moreover, those from solar-powered generation enterprises and hydropower industries from China are urged to invest in Myanmar for electricity generation which is essential for Myanmar daily.
• As China is taking a leading role in EV sector in the world, Chinese businesses are invited to invest in Myanmar.
• The Myanmar Investment Commission will prioritize the investors who are interesting in fertilizer production, production of EV assembly for public transport, cement production, steel, value-added agricultural and breeding products, medicine and medical supplies and palm oil production in the country.
• The foreign investment in Myanmar between 1988 and September 2024, amounting to US$93.38 billion in 12 sectors. It is 0.48 per cent in agriculture, whereas 1.04 per cent in livestock breeding and marine sectors.
• Among them, China makes more than US$18 million in investment in agriculture and over US$53.105 million in livestock breeding and marine sectors. The country invites the investors to increase their investment in Myanmar’s agricultural and livestock industries to grasp more opportunities for success.
• Moreover, the two countries traded over US$8,000 million in the export and import sectors in the 2023-2024 financial year. That is a sign of solid trading between the two countries.
• Moreover, Myanmar is located between the most populated countries, such as China, Bangladesh, and India, so the nation has the potential to upgrade and produce food and other commodities.
• Myanmar mainly exports rice, beans, pulses and sesame, wood, teak and finished wood products to China. The country keeps making efforts to distribute value-added wood-based products in local and foreign markets.
• Therefore, the trading and investment between the two countries should be enhanced, and the country should offer benefits and tax reliefs for the partner business people.
• Regarding the transport and essential infrastructure sectors, the country is located in focal areas of South Asia, South East Asia, and China, and it creates a gateway to the Indian Ocean for China. Therefore, the country has the potential for transport and primary infrastructural sectors.
• Regionally, Myanmar was among the first countries to ratify the Regional Comprehensive Economic Partnership (RCEP) agreement. The activities of the country under RCEP that entered into force between China and Myanmar on 1 May 2022, the release of the RCEP form and insurance document starting 1 November 2022, and other opportunities to get production under China-Myanmar investment agreement.
• Besides the RCEP agreement, cooperation between Myanmar and China is also supported by bilateral investment agreements, the ASEAN-China Free Trade Area (ACFTA), and Myanmar’s Investment Law, which offers protections and smooth operations for investors.
• To further support our partner, Chinese business operators in Myanmar, the government would like to share additional measures taken to facilitate smooth business operations. The country has implemented a direct yuan-kyat direct payment system for trade, cross-border money transfers, and investments, enabling full utilization of the yuan for investments and transactions.
• The unique opportunities to invest in Myanmar as the eight priorities of China-led Global Development Initiatives (GDI) include suitable sectors for Myanmar.
• The country will mainly promote manufacturing and competitive power through innovation under the agricultural development strategy and investment plan. Therefore, businesspeople should work together in research development and technology distribution sectors.
• Concerning the armed conflicts at the China-Myanmar borders, terrorists neglect the invitation of the government to peace and political dialogues and intentionally make efforts to affect the border stability.
• Moreover, they initiated actions to mislead China over Myanmar, luring interests in political and military means. The attempt to promote illegal trade in border regions undermines the stability of both governments and peoples of two countries and endangers regional security.
• Such insurgent and illegal activities are the nature of persuading each other. In the past, insurgents activated the war lord policy operating drugs, smuggling and illegal businesses in border areas.
• Moreover, they re-activate such policies for the reasons of democracy and race. And then, all should be aware that “the dead tiger should not be revived.”
• Bilateral trade directly benefits the socioeconomic status of the people of the two countries; thus, all should cooperate to resume trading, ensuring the stability of border areas.
• This ceremony reinforces our belief that we can work together towards a long-lasting and enhanced partnership for a brighter future.

Following this, Chinese businesspeople who want to invest and already made investments in Myanmar raised the following questions in a cordial manner:

• Regarding potential investments in Myanmar, conditions to create a green environment while conducting the projects, and efforts of the Myanmar government to solve the challenges in the investment sector;
• With regards potential investments for companies, and import and export policies of Myanmar; and
• Regarding the needs to enhance bilateral trade pathways between two countries, investment in the production of fertilizers from charcoal and benefits for Myanmar people from that project.

Relevant Union Ministers responded to the questions raised by the officials of the companies as follows:

• Myanmar’s commitment to renewable energy for electricity generation and consumption;
• Long-term plans for sustainable electricity to meet target, particularly in power generation, invitation to low-risk investments for environment and to those who want to invest in other sectors including electricity generation sector, opportunities for those investors and ease of import and export policies to attract investors;
• Supervision on foreign exchange and local commodities prices by organizing committees, systematic control on rising foreign exchange rate due to sanctions on finance of western group, and systematic management of the government on price stability; and
• Measures taken to facilitate direct payment system such as kyat-yuan, kyat-baht and kyat-rupee for border trade in business sector among countries, making field study for the charcoal to fertilizer production as a national level project, and ongoing step-by-step procedures.

After the sessions of companies’ raising questions and Union Ministers’ responses, the SAC Chairman Prime Minister made concluding remarks as follows:

• There are renewable energy such as hydro, solar, and wind, and China successfully generates hydro power energy and solar energy.
• Myanmar can successfully generate solar energy as it has a hot climate. Therefore, the investments made in the hot regions can be successful, and the power generated by solar energy can improve the environment.
• It is necessary to consider environmental greening initiatives alongside these projects.  Myanmar also welcomes further investments from Chinese entrepreneurs.
• To address inflation, solutions are being developed through a direct payment method to safeguard the interests of traders and investors in Myanmar.
• Measures will be taken to ensure they face no losses, and any challenges encountered can be reported for swift resolution by the State.
• For those interested in investing in agriculture, opportunities are available in Myanmar, following State regulations.
• Necessary supports will be provided, and investors are encouraged to focus on producing finished goods.
• A collective effort is needed to fully restore trade activities in the border regions to reach original levels.
• Given Myanmar’s strong agricultural foundation, the successful implementation of the coal-based fertilizer production project will be continued aiming to meet the improvements progressing as required.
• For potential investments in steel production, further discussions are welcomed to explore the possibilities.

Also present at the meeting were dignitaries of the delegation who accompany the Senior General, the Myanmar Ambassador to China, the president and members of the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI), and persons and Chinese entrepreneurs who want to invest in Myanmar, and officials.

Source: MWD (6-11-2024)

• Trade and investment of two countries and their peoples is a strategic drive to move forward the future that the two countries desire.
• Advanced technologies and biotechnology are widely used in China’s agricultural sector, and the country invites enhanced cooperation with partner business people to transfer technology through investments, produce suitable agrarian products, and ensure value-added food safety that can also sustain the ecosystem.
• The country emphasizes the wood-based furniture industry, veneer, plywood, chipboard, and sawn timber production industries, and it encourages the development of the production of quality thread, rubber, and rubber-based furniture.
• Myanmar has plentiful of raw materials for cement production such as lime, gypsum and common quartz. Moreover, those from solar-powered generation enterprises and hydropower industries from China are urged to invest in Myanmar for electricity generation which is essential for Myanmar daily.
• The Myanmar Investment Commission will prioritize the investors who are interesting in fertilizer production, production of EV assembly for public transport, cement production, steel, value-added agricultural and breeding products, medicine and medical supplies and palm oil production in the country.
• Myanmar is located between the most populated countries, such as China, Bangladesh, and India, so the nation has the potential to upgrade and produce food and other commodities.
• To further support our partner, Chinese business operators in Myanmar, the government would like to share additional measures taken to facilitate smooth business operations. The country has implemented a direct yuan-kyat direct payment system for trade, cross-border money transfers, and investments, enabling full utilization of the yuan for investments and transactions.
• The unique opportunities to invest in Myanmar as the eight priorities of China-led Global Development Initiatives (GDI) include suitable sectors for Myanmar.
• Concerning the armed conflicts at the China-Myanmar borders, terrorists neglect the invitation of the government to peace and political dialogues and intentionally make efforts to affect the border stability.
• Such insurgent and illegal activities are the nature of persuading each other. In the past, insurgents activated the war lord policy operating drugs, smuggling and illegal businesses in border areas.
• It is necessary to consider environmental greening initiatives alongside these projects.  Myanmar also welcomes further investments from Chinese entrepreneurs.