Ambassador U Thit Linn Ohn： Investment Opportunities Aplenty in Changing Myanmar

By Wang Fengjuan

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Ambassador U Thit Linn Ohn： Investment Opportunities Aplenty in Changing Myanmar

By Wang Fengjuan

U Thit Linn Ohn， the Myanmar Ambassador to China， is optimistic about the development of China-Myanmar relations.

The year 2016 marks the 66th anniversary of the establishment of diplomatic relations between China and Myanmar. Both countries are in important periods of reform and development. What shape should cooperation between the two countries take on in the future？ China Report ASEAN conducted an interview with Myanmar Ambassador to China U Thit Linn Ohn for his views on Myanmar, China and the future of relations between the two countries.

CHINA REPORT ASEAN： China and Myanmar are closely-connected neighbors who have forged a comprehensive strategic cooperative partnership, promising more opportunities and a bright further for China-Myanmar cooperation.

Mr Ambassador, please comment on the current nature of China-Myanmar relations.

U THIT LINN OHN： Myanmar shares a 2,000 km border with China and our two countries have traditionally had friendly relations and are good neighbors. As you are well aware, this year is the 66th anniversary of the establishment of diplomatic relations between the Republic of the Union of Myanmar and the People's Republic of China. If we look back at the past 66 years, the peoples of Myanmar and China have enjoyed close and friendly relations in accordance with the Five Principles of Peaceful Coexistence. Relations have been enhanced to the level of Comprehensive Strategic Cooperative Partnership. As our countries share a long border, sometimes we have some difficulties. We can, however, solve problems peacefully through coordination and negotiation based on our traditionally friendly relations. I believe that peace and stability in Myanmar and the development of Myanmar will bring positive results to neighboring countries like China.

Currently, we have good relations with China. Our two countries have been helping each other in multiple sectors for the mutual benefits and interests of the two peoples. Government-to-Government, Army-to-Army, Parliament-to-Parliament and Partyto-Party relations and cooperation have been further strengthened and people-to-people exchanges have also seen significant improvements.

CHINA REPORT ASEAN： At the end of last year, the National League for Democracy won the general election in Myanmar. With strong interest, China is watching Myanmar build a new government.

Mr Ambassador, do you think Myanmar's China policies will change with the new government in power？ How do you think the good-neighborly friendship and cooperation between China and Myanmar should be inherited by the new government, and how can it be enhanced further？

U THIT LINN OHN： A free and fair General Election was held in Myanmar on November 8, 2015. In this election, National League for Democracy won and is now forming a new government. As far as I know, the NLD is committed to maintaining “Independent, Active and Non-aligned Foreign Policy” based on the principles of active participation. They wish to maintain international peace and friendly relations with all countries, as well as safeguard peaceful co-existence with all nations. Tese policies and principles were laid down and upheld since Myanmar regained its independence from colonial rule.

I believe that even though Myanmar is currently in transition from one administration to another, Myanmar will attach great importance to China and maintain a comprehensive strategic cooperative partnership in accordance with the Five Principles of Peaceful Co-Existence. As neighboring countries, Myanmar and China have intertwined interests. Therefore, I am frmly confdent that the governments of the two countries will do their utmost to further strengthen friendly relations and cooperation between Myanmar and China.

CHINA REPORT ASEAN： In recent years, China put forward the initiative of building the 21st-Century Maritime SilkRoad, while actively promoting the construction of the Bangladesh-China-India-Myanmar （BCIM） Economic Corridor, which received positive responses from all parties concerned, including Myanmar. We believe that regional cooperation is of crucial importance to regional peace, stability and prosperity.

Mr Ambassador, what other efforts do you think China and Myanmar should make in promoting regional cooperation？

U THIT LINN OHN： With a view to build a modern developed nation and to improve our position in the international arena, we are increasingly enhancing regional cooperation with neighboring countries as well as development partners. We sincerely believe that regional cooperation will lead to mutual benefit among cities and regions and at the same time it will promote peace, socio-economic development, trade and investment across the region. Taking this into consideration, we are making eforts to seek opportunities for further regional cooperation and friendly ties with neighboring countries.

We note that the implementation of the Belt and Road Initiative and the construction of the BCIM Economic Corridor will offer member countries and other Asian countries a good opportunity to link up within Asia itself and with other parts of the world. Likewise, the promotion of understanding, business opportunities and friendship will strengthen friendly ties within the region. With this connection, we acknowledge the importance of long-term friendship, which ensures win-win cooperation among the parties.

In addition, we also take into account the deployment of our natural and human resources with a view to achieving sustainable development. Tese kinds of collective eforts will pave the way for us to achieve our shared aspirations which include the improvement of the livelihoods of local people and building a harmonious society. Eventually more of our people will be able to enjoy benefts from this regional cooperation.

It is worthwhile to note that multilateral development banks, such as Asia Infrastructure Investment Bank （AIIB）, provide the financial support for significant infrastructure development in Asia. Therefore, we hope to have access to the potential benefits of these types of projects through cooperation with such banks.

CHINA REPORT ASEAN： China is at present Myanmar's top trading partner. Te rapid development of China-Myanmar trade owes a lot to each country's economic situation and geography.

Mr Ambassador, what do you think China and Myanmar can do to further promote trade between the two countries？

U THIT LINN OHN： China is indeed Myanmar's top trading partner and trade with China accounts for around 30 percent of Myanmar's total trade. The main commodities of export to China are base metals, garments, pulses, fsh and rice. China exports machinery and mechanical appliances, electrical machinery, artificial and synthetics fabrics and transport equipment.

For many decades, the agricultural sector has accounted for a very high percentage of GDP and employment in Myanmar. As such, Myanmar's export structure is heavily focused on a few primary commodities, particularly natural gas, wood, and agricultural and marine products. Therefore, we pursue an active policy of encouraging the diversifcation of export products while promoting the value added process for primary commodities. We are very pleased to see the surge of advanced technology and innovation and e-commerce platforms in China's economy and the significant changes from a traditional manufacturing industry to a knowledge based economy.

Terefore, we wish to encourage all trade partners to engage in further cooperation in the feld of processing value-added activities, new technology transfer for standardized products, promoting market access for export, removing the barriers in trade, engaging loans, grants, aids and other means of financial assistances including interest free and concessional loans for enabling long term repayments.

CHINA REPORT ASEAN： Since 2011, Myanmar has formulated a series of economic reform measures.

Mr Ambassador, what do you think are incentives for Chinese enterprises to invest in Myanmar？

U THIT LINN OHN： Since 2011, we have conducted a series of reforms including political, economic, social and private sector development. The reform measures have been made using a participatory approach in which accountability, transparency and inclusiveness have been prioritized. In economic and social terms, we have emphasized creating a sound legal framework for trade and investment as well as logistical and infrastructural development.

In this context, we have conducted the improvement of the country's investment climate by focusing on laws, regulations, policies and institutional reform. Te frst such measure is the development of legal frameworks for foreign investment. The new Foreign Investment Law was enacted on November 2, 2012, followed by the implementation of new foreign investment rules on January 31, 2013. Special Economic Zone （SEZ） laws were put into effect in January 2014 and a new set of SEZ rules will be coming out soon. These laws and rules result in an investor-friendly environment while creating opportunities for technology transfer, employment and social protection for local people.

In addition to this, we aim to make investment policies more clear and transparent. We issue notifcations related to classifcation of economic activities for 100 percent foreign ownership, activities under prohibition, activities for joint venture, requirements of Environmental Impact Assessments and so on.

In terms of strengthening institutional frameworks, the Myanmar Investment Commission （MIC） evaluates investment approvals and issues investment permits in more efective ways. Te point is that we try to streamline and simplify investment procedures at the same time we create one stop services in fve major cities. Since 2011, we have tried to establish a positive business environment for all investors, and foreign enterprises are enjoying favorable tax incentives, longer leases of land and other facilitative measures. Likewise, I do believe that Chinese investors receive great mutual beneft from doing business in Myanmar.

Chinese investment in Myanmar ranks top out of the 39 countries currently investing and accounts for 31 percent of total foreign investment in Myanmar. We have issued 122 Chinese enterprises investment permits and out of those, 97 are successfully running their businesses as total investment among them has reached US$15.3 billion. China mainly invests in the energy sector, oil and gas and manufacturing industries.

Currently, our investment structure is resource-based investment and thus we look forward to changing resource-based investment into technology and knowledge-based investment in the future. We would like to welcome all development partners to increase cooperation and collaboration in those felds.