NAYPYIDAW, Myanmar--The release of more political prisoners on Jan. 13 in Myanmar (Burma) will likely spur Western nations to lift their economic sanctions against the Southeast Asian nation.
Japanese industry minister Yukio Edano, visiting the capital city here Jan. 13, said Tokyo welcomes Myanmar's efforts to promote democratization and economic reforms. He also said that Japan supports “reforms without backtracking.”
Edano made the remarks in meetings with President Thein Sein and other government leaders.
“Good relations between the two countries will begin today,” said Thein Htaik, minister for mines.
Edano was accompanied by executives of the Japan Business Federation (Keidanren) and Japanese companies.
The Japanese delegation held meetings with high-ranking Burmese officials and agreed to cooperate in projects to improve Myanmar's infrastructure, including roads, and the joint exploration of natural resources.
Japan, which trails Western and Asian rival nations in terms of investment in the country, is eager to make inroads there as Myanmar's population stands at about 62 million, offering a sizable market.
Although the per-capita gross domestic product for 2011 is low--it is estimated to be around $800 (61,600 yen), or just 60 percent that of its neighboring countries--Myanmar's economy is expected to take off with foreign assistance.
The country is also rich in natural resources.
“A huge volume of natural resources, including natural gas and coal, is ‘sleeping’ (in Myanmar),” said Shigeo Nakamura, president of Advanced Material Japan, a trading company specializing in rare earth metals, who accompanied Edano to Myanmar.
In the mid-1990s, Myanmar experienced an investment boom. But it lost steam in the late 1990s due to the Asian currency crisis that flared in 1998.
Japanese companies also withdrew from the country after economic sanctions were imposed by the United States and Europe over the then military junta's track record on human rights and other issues.
Myanmar is now actively seeking foreign investment as the democratization process takes hold.
In fiscal 2010, foreign investment in Myanmar came to $20 billion, much of it for natural gas development. Of that amount, 98 percent came from four countries, including China and South Korea.
Japan's presence in Myanmar on a full-fledged basis is currently reflected in the activities of only a few dozen Japanese companies.
Tokyo is now pushing to increase the level of economic activity.
However, many challenges lie ahead.
Clothes and textile manufacturer Matsuoka Corp., based in Fukuyama, Hiroshima Prefecture, set up a subsidiary in a suburb of Myanmar’s largest city, Yangon, in 2004. It said labor costs there were only one-fifth of that of its factory in China. However, the subsidiary’s operations are not going smoothly due to power shortages.
“There are times when electricity is supplied only for one hour a day,” said a company representative.
(This article was written by Takashi Fukuyama and Masaaki Shoji.)
Japanese industry minister Yukio Edano, visiting the capital city here Jan. 13, said Tokyo welcomes Myanmar's efforts to promote democratization and economic reforms. He also said that Japan supports “reforms without backtracking.”
Edano made the remarks in meetings with President Thein Sein and other government leaders.
“Good relations between the two countries will begin today,” said Thein Htaik, minister for mines.
Edano was accompanied by executives of the Japan Business Federation (Keidanren) and Japanese companies.
The Japanese delegation held meetings with high-ranking Burmese officials and agreed to cooperate in projects to improve Myanmar's infrastructure, including roads, and the joint exploration of natural resources.
Japan, which trails Western and Asian rival nations in terms of investment in the country, is eager to make inroads there as Myanmar's population stands at about 62 million, offering a sizable market.
Although the per-capita gross domestic product for 2011 is low--it is estimated to be around $800 (61,600 yen), or just 60 percent that of its neighboring countries--Myanmar's economy is expected to take off with foreign assistance.
The country is also rich in natural resources.
“A huge volume of natural resources, including natural gas and coal, is ‘sleeping’ (in Myanmar),” said Shigeo Nakamura, president of Advanced Material Japan, a trading company specializing in rare earth metals, who accompanied Edano to Myanmar.
In the mid-1990s, Myanmar experienced an investment boom. But it lost steam in the late 1990s due to the Asian currency crisis that flared in 1998.
Japanese companies also withdrew from the country after economic sanctions were imposed by the United States and Europe over the then military junta's track record on human rights and other issues.
Myanmar is now actively seeking foreign investment as the democratization process takes hold.
In fiscal 2010, foreign investment in Myanmar came to $20 billion, much of it for natural gas development. Of that amount, 98 percent came from four countries, including China and South Korea.
Japan's presence in Myanmar on a full-fledged basis is currently reflected in the activities of only a few dozen Japanese companies.
Tokyo is now pushing to increase the level of economic activity.
However, many challenges lie ahead.
Clothes and textile manufacturer Matsuoka Corp., based in Fukuyama, Hiroshima Prefecture, set up a subsidiary in a suburb of Myanmar’s largest city, Yangon, in 2004. It said labor costs there were only one-fifth of that of its factory in China. However, the subsidiary’s operations are not going smoothly due to power shortages.
“There are times when electricity is supplied only for one hour a day,” said a company representative.
(This article was written by Takashi Fukuyama and Masaaki Shoji.)
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