Capital Investment for Industrial
Developmen
Importance of capital investment
Investment and technology
Economic
growth required for the eradication of poverty and the achievement of the other
depends on capital accumulation (investment) and technical change going hand in
hand. Foreign direct investment (FDI) in particular is an important driver of
industrial performance, as it is expected to improve industrial productivity
growth directly by infusing new capital, technologies and managerial know-how,
and by improving the average skills and efficiency levels of industry.
An
important factor, inter alia, which would influence the success of FDI
promotion efforts, is the availability of qualified local entrepreneurs/
investors backing the investment projects. However, finding qualified and
capable local investors, and matching the expectations of foreign investors,
still remains a grave problem in many developing countries. A credible local
investor base will emerge only if the private sector is induced to engage in
productive activities by encouraging domestic investments.
Therefore,
in order to attain growth, developing countries and those with economics in
transition need to mobilize investment-both domestic and foreign- as well as
modern technologies, so as to expand their productive assets.
TABLE 6.1 foreign direct investment for industrial development
MILLION DOLLARS
Fiscal Year
|
Manufacture
|
Industrial
State
|
Power
|
Transport
& Communication
|
2005-06
|
6030
|
|||
06-07
|
281.222
|
|||
07-08
|
18.781
|
|||
08-09
|
0.232
|
|||
09-10
|
33.230
|
|||
10-11
|
66.321
|
8218.520
|
||
11-12
|
32.254
|
4343.978
|
0.634
|
|
12-13
|
400.716
|
364.201
|
||
13-14
|
1837.119
|
46.611
|
1190.232
|
|
14-15
|
1500.512
|
409.110
|
1679.304
|
SOURCE-cso
Investment
is an important factor to sustain economic growth. Myanmar uncovers domestic
and foreign investors to invest in various economic sectors. In 2013-14, 68
citizen enterprise and 123 foreign enterprises were permitted to invest during
2014-15 (April to March) 66 citizen enterprises and foreign enterprises were
permitted to invest. Since 1988 up to April 2015, total amount of 57 billion
dollars is million US $ for foreign direct investment was permitted.
But
in this topic, manufacturing and industrial estate, power, supply, transport and
communication investment are only. HighlTED-- these factors are the most imPORTANT
factors for the industrial.DEVELOPMENT MYANMAR
According
to table of foreign direct investment, there is no investment for manufacturing,
industrial estate, telecommunication during. 2006–07, FDI did not invest for
transport and communication from 2006 to 2011 but FDI staRT to invest
1190.232 million dollars in 2013-14 fixed year and 1500.512 for 2014-16 on the
other hand, FDI did not invest industrial estate from 2006 to 2012-13.
Never
the lest, FDI invested in power supply sector since 2005-06. There was no power
supply investment for 2005-09 and 2009-10 investment of power supply has
increased year by year since 2010-11 up to 4343.978 and 2014-16.
Investment
of manufacturing fluctuate form 2007-2008 to 2014-2016. The highest investment is
400.716 million in 2012-13.
In
the transport and communication sector, there was in FDI
from 2005-06 to 2010-11 but FDI start to invest 0.63 million dollars in 2010-11
and 1190.232 million dollars in 2013-14.
TABLE 6.2 Myanmar
Citizen Investment MILLION
KYATS
Fiscal Year
|
Manufacture
|
Industrial
State
|
Power
|
Transport
& Communication
|
2005-06
|
||||
06-07
|
||||
07-08
|
972.00
|
|||
08-09
|
(-)0.232
|
|||
09-10
|
||||
10-11
|
172,849.84
|
23,198.32
|
39,889.45
|
|
11-12
|
208,747.08
|
4,300.00
|
||
12-13
|
260,133.96
|
248,210.01
|
4,396.26
|
247,430.84
|
13-14
|
366,604.37
|
61,500.00
|
209,151.25
|
107,023.72
|
14-15
|
90,408.77
|
4,248.25
|
161,723.51
|
SOURCES
-CSO
Table
s shows the industry manufacture investment for industrial development.
Citizen investment is as important as FDI the need to allow FDI to get
knowledge technical know-how and capital, experience from international
government most encourage Myanmar citizen to invest because most of INDUSTRIES should be in the hands of Myanmar citizens.
According
to table, Myanmar citizen did not invest in manufacturing , industrial estate,
power supply and transport communication sector in 2005 to 2007. citizens
invested 9720 million kyat in 2007-08 for the manufacturing sector.
The
country manufacturing sector invested by local citizen has been increasing year
by year since 2010-11 and the highest is 666,604.37 million kyat in 2013-14.
In
the industrial estate sector, citizens start to invest since 2012-13.
In
the power supply sector local company has invested since 2010-11.
Investment
of transportation and communication by local company has increased since 2010-11
year by year.
It
is expected that Myanmar citizen may be able to invest in the future.
Bank
Central
bank of Myanmar controls all private and state owned bank. There are four state
owned banks, Myanmar Economic, Bank, Myanmar Agricultural development bank,
Myanmar Foreign trade Bank and Myanmar investment bank. Private banks mostly
t usually lend the customer commercial loan. Some banks lend industrial loan. It is difficult get the amount of loan how much the banks lend
industrial loan to company.
Banks
take part in important role for the development of industrial development
most of the banks usually lends seasonal loan and short term loan. Moreover,
Government allow the foreign bank to open the branches.
Importance of land investment
Land
investment is important for the development of industry. When study the land
investment local citizen start to invest in 2012-13. Special economic zone such
as kyauk phyu, Dei Wei, and Thilewa project come end. Kyauk Phyu and Dei Wei
Project are under construction until now. There are a lot of industrial zones
in Myanmar, investor are not interested to build the factor because of lack enough electric and manufacture.
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