Foreign investors re-routing capital from Myanmar to Vietnam, Cambodia

Those foreign investors which were positive until recently of a dazzling economic future of a democratic Myanmar have been taught better by the February 1, 2021 military coup, which many analysts say was a both politically and economically utterly pointless maneuver by the Myanmar army.

The coup descended the united states into chaos, with violent protests occurring every day and the country sent right into a stalemate by general strikes of public workers, including teachers, bureaucrats and medics, new international sanctions and a retreat of foreign investors.

According to market observers, international investors which usually previously preferred Myanmar to create organization in Southeast Asia are actually looking towards chances in Vietnam and Cambodia, with Vietnam becoming the top destination because of its booming economy, attractiveness for conducting business and political stability.

Likewise, investment firms that have setup seed capital cash for Myanmar startups and business owners are now turning away and so are looking for latest deals in Vietnam as one of the top emerging countries in your community regarding expansion of its digital and ground breaking economy.

With the foreign investment flow halted by the coup, Myanmar has ceased to be Southeast Asia’s top nation in relation to growth in foreign fund inflows, a role which it has held for some time following the country’s democratisation method started after the 2010 elections.

Meanwhile, many businesses have terminated Myanmar partnerships that involve corporations with ties to the armed service.

Japanese brewer Kirin Holdings severed ties with Myanmar Economical Holdings, a military-run company. Lim Kaling, co-founder of Singapore-based gaming provider Razer, just lately announced that he's divesting his stake in a venture which indirectly owns a pastime in the Myanmar Economic Holdings-linked Virginia Tobacco Business.

All benefits of the previous decade are lost

In a nutshell, for most observing the situation the Myanmar coup was a pointless working out of disgruntled generals and army cronies fearing to lose control that place the country’s development back several decades.

With investors re-routing their funds, companies cutting their ties and startups and business owners looking elsewhere in the region to set up shop, the entire devastating results are yet to be observed, but it appears the coup shows that the Myanmar armed service is ready to give up most of Myanmar’s gains of the last ten years in diplomacy, international trade and investment just to make contact with holding an iron fist and continue steadily to plunder the country in an unimpeded manner.