Myanmar has received US$928mn in foreign aid to support 16 agricultural projects in the country
Ohn Than, deputy minister for agriculture in Myanmar, said that the foreign financial aid would fund 12 of the projects and the remaining four would be funded by loans.
The 2012 Farmland Law allows foreign investment flow into the agricultural sector, on which more than 70 per cent of Myanmar’s population depends.
“But investment has been limited because of the loss of farmland tenure, high land prices driven by speculation and the weakness of the rule of law,” the minister added.
More than 70 percent of foreign investments go to extracting natural resources such as oil, gas and mining, but just one per cent has gone to agriculture, he revealed.
“Foreign investment is low because of discrepancies between the foreign investment law and the vacant, fallow and virgin lands management law. The foreign investment law allows an initial 50 years of investment, while the land management law allowed a maximum of only 30 years,” added Than.
In the recent years, China, Thailand, South Korea and Japan have invested in the agricultural sector of Myanmar. China has invested in sugarcane and fruit plantations, whereas Thailand has invested in vegetable and fruit plantations in the country.
