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Capital escape ‘coup’ Myanmar, orange drops ‘Vietnam, Cambodia’

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The coup in Myanmar caused a lot of concern for foreign capital groups. Who fear it will be affected by economic damage After earlier political signs improved, there was a huge influx of money into Myanmar. But the sudden coup resulted in investors having to keep an eye on the situation. And looking for alternatives to investment in other countries, especially “Vietnam”, which is the most outstanding in the region.

Nikkei Asia reported that after the coup d’etat of Daw Aung San Suu Kyi by the Myanmar Army on Feb. 1, As a result, many foreign capital groups are keeping a close eye on the political situation. Along with reviewing investment plans in Myanmar

Previously, Myanmar was one of the countries that foreign investors were interested in. As part of Cambodia, Laos, Myanmar and Vietnam (CLMV) with fast growing economies Especially in the past five years, CLMV GDP has grown at an average of 6%, higher than other areas in Southeast Asia. This was due to the influx of foreign investment funds, which in 2019 the CLMV countries had a 6.3% increase in FDI (FDI), with Myanmar increasing by 55.9% from 2018 was the biggest leap in the country. According to the Association of Southeast Asian Nations

The coup in Myanmar, however, is at risk of disrupting Myanmar’s economic growth. By many foreign capital, such as “Kirin Holdings”, a Japanese brewer. It has ended its business relationship with Myanmar Economic Holdings Limited (MEHL), a Myanmar military company, as well as Lim Kaling. Co-founded “Racer”, a Singapore-based technology company, is also preparing to sell a stake in all Myanmar-connected companies.

Dave Richards, investor managing partner of American investment firm Caparia Ventures, said. “Investors’ money might not go to Myanmar. And neighboring countries in the region will benefit from this situation. ”Caparia Ventures previously planned to invest in February totaling US $ 8 million in several countries with a focus on Myanmar. But it has suspended the plan and will turn to investing in Vietnam later this year. As well as investing in other countries such as Cambodia, Bangladesh and Nepal.

The capital group that focuses on investing only in Myanmar is the only one. “Delta Capital” and “Anthem Asia” They suspend their investments and keep an eye on the political situation closely

“Andrew Dirk” The COO of Ober Capital, an investment firm focused on CLMV countries, sees the group that previously focused on investing in Myanmar. May adjust strategy to more regional investments Regardless, Vietnam has a strong economy. Including Cambodia and Lao PDR, which are accelerating infrastructure development to attract investors.

While “Romain Gaiyod” President of the company “Sipa Partners”, a business consultant in Tokyo, said. The coup saw the Myanmar military ready to abandon diplomatic, trade and investment interests over the past 10 years in a bid to take control of the country. Which caused damage to Myanmar But become a benefit to other countries in the region.

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