Myanmar allows foreign joint venture to trade construction materials

The Ministry of Commerce of Myanmar has allowed foreign joint venture companies for trading and distribution of construction materials, according to an announcement of the ministry Saturday.

The ministry has liberalized such restrictions, granting export/import license to foreign joint ventures on construction materials in order to meet the international trade regulations of World Trade Organization(WTO) and to boost the country's construction sector.

Moreover, gradual growth of foreign investment in the country is also a main factor.

"The companies are allowed to trade any kind of permitted construction materials .But they can trade with a limit of capital in accordance with their equity ratio ," U Aung Soe,Deputy Director General of Ministry of Commerce, told Xinhua.

Myanmar's construction industry expanded rapidly in recent years. The sector's GDP growth amounted to 7.7 percent in the fiscal year 2014-2015 and is expected to grow to 8.3 percent in 2015-2016 fiscal year, according to the report of Oxford Business Group.

However, the industry is declining at present as the regional government of Yangon, the commercial capital of Myanmar, has suspended the construction of high rise building in the region since mid May.

Therefore the permission to more import of construction materials may not suit the current condition of industry, according to a member of Myanmar Construction Entrepreneurs Association.

Foreign investment in country's construction sector amounted to 37.767 million U.S. dollars as the end of June since late 1988. Endit