NAYPYIDAW, Japan _ Myanmar has been billed as "Asia's final frontier," and its rich resources and cheap wage levels are increasingly catching the eye of Japanese companies and the government.
Economy, Trade and Industry Minister Yukio Edano on Friday met with President Thein Sein and other senior officials of Myanmar, and reached an agreement on Japan's cooperation in the Southeast Asian country's economic development.
Rivals from China and elsewhere in Asia have already made significant investments in Myanmar's infrastructure and the procurement of natural resources.
Although Myanmar's development has lagged other Asian nations due to economic sanctions imposed by Western nations, some restrictions have been loosened in recent months as it has made steps toward democratization.
City Mart, a huge shopping center that opened in central Yangon, Myanmar's largest city, last March epitomizes the country's rapid economic development.
The shopping center has stores stocked not only with daily necessities but also cosmetics from Japan, the United States and Europe, such as Kanebo and L'Oreal. The center has several thousand customers a day.
Myanmar's per-capita gross domestic product is still the lowest level among members of the Association of Southeast Asian Nations, but this figure tripled from $235 (about 18,000 yen) in 2007 to $702 (about 53,000 yen) in 2010. The Myanmar government's promotion of economic liberalization has been a major driver of this growth.
Myanmar's military junta had restricted investment from overseas, but after the country's general election in 2010, it changed tack and has rolled out the open mat to foreign investment. Foreign investment in Myanmar in fiscal 2010 totaled about $20 billion _ an about 70-fold jump from $300 million the previous year.
Myanmar has huge quantities of undeveloped natural resources such as natural gas, oil and rare earths. Future investment is widely expected in social and economic infrastructure, such as power generation and financial systems.
Myanmar's population of about 60 million is one of the largest among ASEAN members. Labor costs are less than one-fifth of those in China or Thailand, a tempting prospect for Japanese makers.
"We have high expectations that the country could be an alternative production base to replace the two countries that have political and flood risks," an official of a Japanese electric machinery maker said.
China, Thailand and South Korea have invested far more in Myanmar than other countries have, including Japan.
Japan was once Myanmar's largest aid donor. However, bilateral ties have cooled since 1988, when Western countries imposed economic sanctions on the country.
wenatcheeworld.com
Economy, Trade and Industry Minister Yukio Edano on Friday met with President Thein Sein and other senior officials of Myanmar, and reached an agreement on Japan's cooperation in the Southeast Asian country's economic development.
Rivals from China and elsewhere in Asia have already made significant investments in Myanmar's infrastructure and the procurement of natural resources.
Although Myanmar's development has lagged other Asian nations due to economic sanctions imposed by Western nations, some restrictions have been loosened in recent months as it has made steps toward democratization.
City Mart, a huge shopping center that opened in central Yangon, Myanmar's largest city, last March epitomizes the country's rapid economic development.
The shopping center has stores stocked not only with daily necessities but also cosmetics from Japan, the United States and Europe, such as Kanebo and L'Oreal. The center has several thousand customers a day.
Myanmar's per-capita gross domestic product is still the lowest level among members of the Association of Southeast Asian Nations, but this figure tripled from $235 (about 18,000 yen) in 2007 to $702 (about 53,000 yen) in 2010. The Myanmar government's promotion of economic liberalization has been a major driver of this growth.
Myanmar's military junta had restricted investment from overseas, but after the country's general election in 2010, it changed tack and has rolled out the open mat to foreign investment. Foreign investment in Myanmar in fiscal 2010 totaled about $20 billion _ an about 70-fold jump from $300 million the previous year.
Myanmar has huge quantities of undeveloped natural resources such as natural gas, oil and rare earths. Future investment is widely expected in social and economic infrastructure, such as power generation and financial systems.
Myanmar's population of about 60 million is one of the largest among ASEAN members. Labor costs are less than one-fifth of those in China or Thailand, a tempting prospect for Japanese makers.
"We have high expectations that the country could be an alternative production base to replace the two countries that have political and flood risks," an official of a Japanese electric machinery maker said.
China, Thailand and South Korea have invested far more in Myanmar than other countries have, including Japan.
Japan was once Myanmar's largest aid donor. However, bilateral ties have cooled since 1988, when Western countries imposed economic sanctions on the country.
wenatcheeworld.com
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