Foreign direct investment (FDI) has topped USD 2 billion in the first five months of the current fiscal year. That number came from 132 new foreign investors who received approval from the Directorate of Investment and Company Administration (DICA) between October 1, 2019, and February 29, 2020. Together, the oil and gas and power sectors accounted for more than USD 1 billion. Manufacturing was the next highest sector with 14.14 percent of new FDI.

The USD 2 billion mark puts Myanmar on track to at least match the 2018-2019 fiscal year, which saw USD 4.4 billion in foreign investment. Instability on the western border and a politically-embarrassing condemnation from the United Nations and International Court of Justice have tempered Western interest somewhat. However, Myanmar has found eager investors from Thailand, Japan, South Korea and China. China, in particular, has redoubled investments in oil and gas, power, and transportation infrastructure as it develops the so-named China-Myanmar Economic Corridor, a key component of China’s Belt and Road Initiative.

Myanmar, in return, has been happy to oblige its largest neighbor, especially in the energy sector. Surging demand for power has led Myanmar to import large quantities of liquid natural gas from China and Hong Kong and partner with Chinese firms for domestic power plants. Beyond power, Myanmar’s garment sector continues to grow despite worker unrest and, more recently, factory closures due to the COVID-19 pandemic. Although the pandemic has also hit Myanmar’s tourism industry, foreign companies have announced several high-profile hotel and resort projects in Yangon and on Myanmar’s coasts. Finally, foreign investment is up in the finance sector, as new rule changes have opened banks, listed companies on the Yangon Stock Exchange and the insurance market to outside stakeholders.