China ranks as Myanmar's top investor in fiscal 2008-09

Jul 14, 2009, 11:37 GMT

   Yangon - China was Myanmar's top foreign investor in the fiscal year 2008-09, official statistics revealed Tuesday.

   China's total investments in Myanmar last fiscal year, ending on March 31, amounted to 856 million dollars, compared with the country's total of 985 million dollars in foreign direct investment, according to figures released by the Central Statistical Organization.

   Much of China's investments were accounted for by the China Metal Mining Group, which signed a nickel-production contract in 2008 with a mining company under Myanmar's Ministry of Mines.

   The contract involved the development of a large-scale nickel mining and smelting project in Myanmar, also known as Burma.

   Russia came second among foreign investor nations, with 94 million dollars sunk in oil and gas exploration, and Vietnam ranked third with 20 million dollars in investments.

   Myanmar's neighbour Thailand was the fourth largest investor with 15 million dollars committed by Thai companies, mostly in the tourism sector.

   'China has mostly been investing in exploration of mineral resources because they need minerals for their industrial development,' said one Yangon-based university economist who asked to remain anonymous.

   'We would like to see China invest in the industrial sector if they really want to see Myanmar become a developed country,' he added.

   Myanmar's ruling junta has maintained close ties with China since it took power in 1988, after a crackdown on a pro-democracy movement that left an estimated 3,000 dead.

   China, a permanent member of the United Nations Security Council, has repeatedly defended the country's poor human rights record and failure to implement democratic reforms.