Nay Pyi Taw, Myanmar, October 06, 2015 – The President of the Republic of the Union of Myanmar U Thein Sein met with Mr. Tran Bac Ha, Chairman of Association of Vietnamese Investors in Myanmar (AVIM) and Chairman of BIDV in Nay Pyi Taw, Myanmar to discuss future business relations between the two countries. Representatives of Myanmar’s Minister of President Office, the Myanmar Ministry of Information and the Central Bank of Myanmar, as well as Mr. Pham Thanh Dung, Vietnamese Ambassador to Myanmar and Mr. Doan Nguyen Duc, Chairman of Hoang Anh Gia Lai Group, AVIM member were in attendance.

 

​Cementing long-term business connections in Myanmar

As part of the meeting, Ambassador Pham Thanh Dung submitted a Diplomatic Note from the Prime Minister of the Socialist Republic of Vietnam to President U Thein Sein. This note highlighted the successful relations between Vietnam and Myanmar and the good results seen from economic cooperation, including trade, investment and services between the two countries. The Vietnamese Prime Minister also emphasised a proposal to the Government of Myanmar to consider licensing Vietnamese banks to operate in Myanmar.

Mr. Tran Bac Ha, Chairman of AVIM, briefed the President on the positive results of the socio-economic development and sustainable growth of Vietnam and the strong economic cooperation from investment, trade and tourism between the two countries. The AVIM chairman affirmed that the Vietnamese business community hasidentified Myanmar as an important new market and has a vested interest in conducting long-term business in Myanmar.

The AVIM Chairman also reported on the difficulties seen in some projects, including PVEP’s oil and gas exploration and exploitation, Viettel’s telecom, Vietjetairlines’ domestic flights, as well as in the proposal on organising a tourism development cooperation forum themed “Four countries, one destination” between Cambodia, Laos, Myanmar and Vietnam.

The AVIM association reported that import-export turnover between the two countries increased by thirty percent and Vietnam was ranked eighth amongst investors in Myanmar, with a turnover of USD688 million. However, the turnover showed signs of decline in 2015. During the first nine months of 2015, there was no FDI registered by Vietnam.Trade relations decreased by nearly thirteen percent, primarily due to Vietnamese banks not yet being licensed to establish their banks in Myanmar, leading to a shortage of payments and investment capital to Vietnamese enterprises operating in Myanmar.

The AVIM/BIDV chairman officially reported to the President that BIDV has now fully met all requirements to open its branch in Myanmar and the bank has made good preparations for finance, investment and technology. The branch is ready to begin operating immediately uponreceiving the license and it is hoped the licence will be in place by 2016.

Expectations foreffective business

President U Thein Seinresponded positively and stressed that Myanmar appreciates the friendly relations and cooperation between Vietnam and Myanmar, with particular regard to the fruitful cooperation between the two countries in terms of economy and trade in recent years. He expressed his hopes forpotential cooperationbetween Vietnam and Myanmar in trade areas such as livestock, agriculture and industrial crops as well as in Vietnam’s strong products in agriculture and seafood.

The President addressed the obstacles encountered by Vietnamese enterprises in an open and satisfactory manner as well as directing his ministries to support as necessary. The President showed a particular interest and willingness to obtain more specific information about tourism promotion forums in the last five years to direct his ministries for future participation.

The President commented upon the significant positive role of BIDV and its presences in Myanmar, including the BIDV representative office, BIC and BMF – a microfinance joint venture finance between BIDV and its Myanmar partner- as well as BIDV’s commitment to supporting Myanmar's financial markets. The President further instructed his ministers to prioritise licensing BIDV operations in 2016.

The President once again welcomed the activities of AVIM/BIDV in Myanmar and expressed his hopes that AVIM/BIDV activities will continue to make greater contributions to Vietnamese businesses’ activities in Myanmar, further contributing to the sustainable relationship between the two countries. 

For more information, please contact:

Bank for Investment and Development of Vietnam JSC (BIDV)

Tel: (04) 2220 5256; Hotline: 19009247   

Website: www.bidv.com.vn