US secretary of Commerce Penny Pritzker oversaw the opening of a commercial services office in Yangon on June 6 as the US looks to strengthen economic ties with Myanmar after decades of severely limited engagement hampered by strict sanctions. The commercial services office will operate out of the US Embassy in Yan
US secretary of Commerce Penny Pritzker oversaw the opening of a commercial services office in Yangon on June 6 as the US looks to strengthen economic ties with Myanmar after decades of severely limited engagement hampered by strict sanctions.
The commercial services office will operate out of the US Embassy in Yangon and will serve as a resource for US companies that are looking to investment in Myanmar as well as Myanmar-based companies who are looking to export products to the US.
Colorado-based beverage container manufacturer Ball Corp in May announced plans for a US$40 million production line that will sell cans to Coca-Cola and other soft drink producers with Myanmar operations.
At a signing ceremony following the US Embassy event, Ball Corp officials confirmed that the plant would be located in the Japanese-backed Thilawa Special Economic Zone, making it the first of two companies to agree to set up production in the SEZ. The other is Japanese auto parts maker Koyo Radiator Company.
Officials from APR Energy, a Jacksonville-headquartered short-term energy firm, announced that their 100 megawatt power generation plant in Kyaukse, Mandalay Region was fully operational. The initial contract for the project was signed in February.
As of April 30, US companies have planned to invest US$243.6 million in Myanmar, according to figures released by the US Embassy, lagging well behind Myanmar's top investor China, which accounts for $14 billion in approved FDI, but also never levelled sanctions against Myanmar's previous military government.
US officials were optimistic that Myanmar could draw significant investment despite a business environment described by US Ambassador to Myanmar Derek Mitchell as “complex”.
But observers said that many companies still look to be taking a wait-and-see approach to the Myanmar market, where a number of uncertainties still remain.
Ms Pritzker's two-day visit to Myanmar was part of a larger trip that saw her make stops in Vietnam and the Philippines and aimed to offer assurance to ASEAN countries that American economic engagement in the region was a priority. In the past investment has “seemed less important to the US rebalance to Asia than security relations”, said Mr Hiebert.