MMRDRS
MMRD BULLETIN
August 19, 2019

NEWS
MANUFACTURING

Changhe Q35 comes to Yangon

Gold AYA Motors International Co Ltd has introduced its very first compact crossover the Changhe Q35 SUV in Yangon. The launch event for this sporty car was held at the Grand Wyndham Hotel on August 2. The new Q35 is positioned as a mid-high end SUV, and appeals to those young drivers looking to impress on the roads. The sleek design and front wheel drive make it easy to maneuver in many of Myanmar’s urban and rural terrain.

The unique sports SUV is semi knocked-down (SKD) model, meaning that all the cars have been imported and reassembled in Gold Aya Motors International’s car plant in Mandalay. The company hopes to produce about 10,000 units each year. All parts of the Q35 are assembled in Mandalay, imported by Gold AYA imported from the Chinese BAIC Company, which also works with Mercedes and Hyundai. The official retail price for Changhe Q35 is US$21,800, which includes a three year or 60,000 kilometre warranty. The Shining Star Group of Kunming, China established Gold AYA Motors International Co Ltd, and has assembled automobiles in Myanmar since 2017.

Source: Myanmar Times 

Automobiles to roll off new assembly line in Mandalay

Related imageMyanmar has been importing car parts and assembling them for years, but now Chinese cars will be produced here for the first time, at Myotha industrial zone in Ngazun township, Mandalay Region.

Shining Star Group of Kunming, China, established Gold AYA Motor International Co Ltd to make automobiles in Myanmar in 2017. The plant on more than 20 acres of land in Myotha industrial zone will manufacture high quality vehicles to be sold at reasonable prices, according to the company, with the ultimate goal of labelling them “made in Myanmar.”

Phase 1 of the factory project includes an assembly line for Semi Knocked-Down vehicles, equipment, car parts, storage godowns, parking, test-drive tracks, a fuel warehouse, dump areas, toilets and offices. It will require a US$30 million investment by the company and produce ten models of luxury cars, commercial cars, pickups, SUVs, and MPVs.

Within 5 years, the firm expects to sell over 50,000 cars with 40pc local production. Later, it expects to double the production. The first car to be made by the firm will be Beijing Auto Industry Corp.’s Changhe Q35 SUV, which rolls into Yangon and Mandalay showrooms on Friday.

Source: Myanmar Times 

European car makers express interest in Myanmar

Related imageThe Czech Republic has announced interest to assemble Skoda cars in Myanmar, U Thaung Tun, Union minister for Investment and Foreign Economic Relations, said last week. Hungary and Czech Republic made the offers during State Counsellor Daw Aung San Suu Kyi’s Europe visit last month.

However, more information on assembling Skoda vehicles in Myanmar was not provided. Hungary has offered to manufacture electric cars in Myanmar and the Ministry of Industry will cooperate. It will be an assembly plant. But first, three cars will be imported on a trial run basis to gauge their performance.

On May 30, Toyota Motor Corporation announced that it will establish Toyota Myanmar Co Ltd in Thilawa Special Economic Zone as its first vehicle production company in Myanmar, where it will locally produce the Hilux from February 2021. Investment is expected to amount to US$52.6 million. It intends to assemble around 2500 Hilux vehicles using the semi knock-down method and will hire around 130 employees.

Source: Myanmar Times 

First commercial solar power plant launched in Myanmar

Image result for Solar plant myanmarState Counsellor Daw Aung San Suu Kyi last week launched the first phase of Myanmar’s first commercial solar-power plant in Minbu, Magwe Region, adding 40MW of power to the national grid. The Minbu Solar Power Plant project, which will be completed in four phases, will have the capacity to generate 170MW of power and produce 350 million kilowatt hours per annum, which is sufficient to electrify about 210,000 households.

Construction first began in February 2018 under a Build, Operate and Transfer arrangement between Green Earth Power (Myanmar) Co and the government. The Minbu plant is part of a longer term goal to electrify the entire country by 2030, said Daw Aung San Suu Kyi. By 2021, at least 55pc of the country is expected to receive access to power. The launch of Minbu Solar Power Plant comes two days after the Ministry of Electricity and Energy (MOEE) announced substantial hikes in electricity prices for both residential and business users from today onwards.

The government incurs costs of K89 per unit to generate and distribute electricity from hydropower, and K178 per unit for electricity from natural gas, according to the MOEE. Before the hike, electricity was provided to the public at a loss of K507 billion in the 2017-18 fiscal year and losses rose to K630 billion in 2018-19, according to data from the Ministry of Planning and Finance.

Source: Myanmar Times

Textile Industry Park will be built in Mandalay

Image result for textile industryU Zaw Myint Maung, Chief Minister of Mandalay Region, said that the government will work with the Japan International Cooperation Agency (JICA) to set up textile industry park in Mandalay.

The chief minister said Mandalay welcomes investments, especially in agriculture and the garment industry, among others. Mandalay city has US$3.7 billion (K5.69 trillion) in foreign investments and K5.07 trillion in local investments. He said the Investment Law affords equal rights to citizens and foreigners alike.

Source: Myanmar Times

Businesspersons attending Rakhine State Investment Fair conduct study tour

Local and foreign businesspersons attending the Rakhine State Investment Fair on Ngapali Beach, Thandwe Township in Rakhine State, conducted study tours to new beach sites developed at Thandwe Township, Ngapali Beach and Gwa Township as well as aquatic works and cold storages.

During the study tour a prawn cold storage and a fishing village in Thandwe Township; a prawn hatchery in Gwa Township; new beach sites developed in Maung Shwelay, Mawyone and Kanthaya and hotel zone projects were visited.

Commenting on the study tour, Rakhine State Investment and Company Administration director Dr. Htoo Min Thein said, “After viewing first-hand the potentials for investment and locations where works can be conducted in Rakhine State, business persons and investors can make decisions. They can also considering upgrading the present works.”
According to Rakhine State Investment and Company Administration at the present Singapore, South Korea, China and India were doing the most investment in Rakhine State and the majority was in the energy sector.

Rakhine State Investment Fair was conducted with an aims to create investment opportunities and connect local businesses with local and foreign investor for economic development of Rakhine State and was conducted with the support of Myanmar Investment Commission, Japan International Cooperation Agency (JICA), Japan External Trade Organization (JETRO), Myanmar Survey Research Co., Ltd. (MSR) and private sector companies led by Rakhine State Government.

Source: The Global New Light of Myanmar

Osotspa builds new factory in Myanmar to produce energy drink

Image result for Osotspa builds new factory in Myanmar to produce energy drinkThailand’s Osotspa Public Company Limited, the maker of M-150 energy drink, and Loi Hein Co., Ltd., Myanmar’s largest drinking water and beverage business, held a groundbreaking ceremony for the construction of a new beverage production facility located in the Thilawa Special Economic Zone (Zone B) in Yangon at the end of November 2018.

This is Osotspa’s first production facility in Myanmar. The new beverage production facility is located on 83 rai (approximately 132,800 square meters) in the Thilawa Special Economic Zone (Zone B). It will be operated by Osotspa Myanmar Co., Ltd., a joint venture in which Osotspa PCL holds an 85% share and Loi Hein Co., Ltd. holds a 15% share.

The project represents a total investment of 2,400 million baht funded by the proceeds received from Osotspa’s initial public offering (IPO) which took place in October.

Construction of the new plant is expected to be completed and ready for operations in the fourth quarter of 2019, producing Osotspa drinks for distribution in Myanmar.

Source: Mini Me Insights

Myanmar to manufacture electric buses

Image result for Myanmar to manufacture electric busesThe signing of an agreement to manufacture electric buses and erect charging stations held at the Research and Development Bureau in Yedhashe, Myanmar.

Union Minister for Industry U Khin Maung Cho said that Myanmar will manufacture electric buses and charging stations, in cooperation with Green Power Myanmar Co Ltd, by adapting the technology of Csepel Holding Limited of Hungary.

The ultimate aim is to turn Myanmar into an electric bus and parts exporter, as well as the Southeast Asian hub for electric vehicles. The Hungarian cooperation will provide Myanmar with new manufacturing, repair and maintenance technologies. Moreover, the country can earn income from exports and generate job opportunities.

Source: The Mirror

Launching of new Mahindra Tractor by Bandoola Group of Myanmar

Image result for mahindra tractor myanmarFarmers can buy India-made tractor, Mahindra, with fifty percent-off loan according to the company’s new product launching show.

Mahindra Tractors, Rice Planters and other agricultural equipments were imported and distributed by Bandoola Enterprises Limited of Myanmar. The company is also selling new product of India-made Tractor named Four-Wheel Tractor at the current and that new product launching show was held at Mandalay.

Mahindra Tractor and Agricultural Equipments Company was regarded as most tractor selling company on 2010 and it was distributed in Myanmar since 2012.

Source: Daily Eleven

Yoma Bank, Myanmar CP Livestock sign loan agreement

YOMA Bank, one of Myanmar’s largest commercial banks, signed a loan agreement with authorized dealers of Myanmar CP Livestock (MCPL), a leading agro-industry and food business in Myanmar, on Friday, according to a press release issued by the bank. The joint agribusiness finance programme aims to facilitate livestock dealers and farmers with working capital to buy animal feed from the Myanmar CP Livestock, which is currently operating four feed mills in Yangon, Taunggyi and Mandalay, with a total capacity of around 750,000 tons per year.

This is Yoma Bank’s new innovative financing for the development of local small- and medium-enterprises. With this program, individual farmers and dealers will have access to a formal financial system to grow their livestock businesses.

Under the new loan system, applicants are not required to put up any physical collateral, typically requested by banks in Myanmar, but rather earn unsecured bank credit, based on their positive track record. The agribusiness finance program ensures to develop the country’s poultry sector by providing this need-based financing program for local farmers and other stakeholders, who might currently be excluded from the formal financial system.

Source- The Global New Light of Myanmar

 

HOME PAGE

NEWS BY SECTOR

If you prefer to read previous version with PDF format, click here to go to our bulletin library .

MMRD BUSINESS INSIGHT

MMRD helping clients unlock growth opportunities and shape tomorrow’s Myanmar.
MMRD Insight—Editor