11:02 AM
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By AYAKO MIE, Staff writer ...
April 8th, 2012, The Japan Times - Mizuho Corporate Bank opened a representative office in Yangon on
Friday, joining the legion of domestic companies seeking to tap into
Myanmar as it moves toward democracy.
Mizuho's move underlines the recent rush to enter
a market previously isolated by economic sanctions imposed by the
international community.
Myanmar's abundant natural resources, cheap
labor and 62 million potential consumers make it an attractive
investment target for Japanese companies. Only a few, however, managed
to penetrate the market amid the U.S.-led economic sanctions.
But ever since Myanmar's junta launched a reform
drive last year, companies have been champing at the bit. Several have
already announced plans to make a foray into the country.
Lawson Inc., Japan's second-largest
convenience chain, said Thursday it will send two senior officials to
Myanmar this week in hopes of launching its first franchise by the end
of the year.
The Daiso discount chain already opened a store
in Yangon last month. Suzuki Motor Corp. is poised to restart a joint
venture, spearheading moves by domestic automakers. Suzuki's previous
joint venture ended in 2010 when its local business license expired.
The Japan External Trade Organization said
more than 290 of the nation's companies visited Myanmar between last
April and December, up 50 percent from the same period the year before.
JETRO is planning to set up a business support center for them by the
end of this year.
Japanese clothing makers have long capitalized on
Myanmar's cheap labor, but JETRO said there's more diversified interest
now, including for factory builders, accountants and legal specialists.
"Everybody is thinking 'China plus one' now. Myanmar could be the one," said Masayoshi Watanabe of JETRO.
China has been losing its luster amid rising
wages and labor strikes, leading companies to boost operations in
members of the Association of Southeast Asian Nations, while maintaining
their presence in China.
A recent announcement by the U.S. that it
will ease some sanctions on Myanmar might be an encouraging sign for
Japanese companies, but experts say the lack of infrastructure and
transparent business system pose obstacles.
"There are some uncertainties as the extent of
the relaxation is unknown, but more companies will try to enter the
country," said Eitaro Kojima of JETRO.
Japanese investment in Myanmar has been minor
at a cumulative $221 million since 1988, compared with China's $9.63
billion. But Tokyo, in the face of increasing global competition, has
pursued more economic ties with the nation.
After U.S. Secretary of State Hillary Rodham
Clinton visited Myanmar in November, Foreign Minister Koichiro Genba and
trade minister Yukio Edano followed suit and forged an agreement to
launch economic talks.
The government is also considering a
resumption of yen loans to Myanmar for the first time in 25 years, which
would spur more investment opportunities for traders such as Marubeni
Corp. and Mitsui & Co.
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