Weekly Business Roundup (July 4, 2009)

Hong Kong Trade Fair Woos Burmese Exhibitors

Organizers of a wide-ranging international Hong Kong trade fair have visited Rangoon seeking to attract exhibitors from Burma.

The move comes as Hong Kong also strives to increase economic links with Burma, despite growing international condemnation over the trial of Burmese opposition leader Aung San Suu Kyi.

Officials of the Hong Kong Trade Development Council were in Rangoon to meet Union of Myanmar Federation of Chambers of Commerce leaders to drum up interest in participating in the annual Hong Kong fair, which is being held next week and again in July 2010.

The Hong Kong trade visit to Burma was reported by China’s official news agency Xinhua which said the former British colony is now in the top five Burmese export destinations.

Hong Kong also now stands as sixth largest foreign investor in Burma, according to Xinhua, quoting unnamed government officials.

Hong Kong businesses invested just over US $500 million in Burma in 31 projects in 2008, the report said.
 
Junta Plans to Sell Gems at Foreign Fairs

The state-run Myanmar Gems Enterprise is reportedly planning to participate in several industry fairs abroad.

The junta is considering trying to sell Burmese precious stones in the Middle East and Sri Lanka to boost sales as Western countries tighten sanctions.

The Burmese gems agency has teamed up with the Union of Myanmar Federation of Chambers of Commerce and Industry to exhibit at a trade fair in the Sri Lankan capital of Colombo in September, according to the Chinese news agency Xinhua.

It quotes Burmese officials saying approaches have been made to take part also in fairs in Oman and the United Arab Emirates.

The report comes as the Burmese gems enterprise wraps up a two-week gems auction in Rangoon on Saturday. It was the second such event this year.

Despite Western sanctions, gems are among Burma’s top five foreign currency earners. The gems enterprise claims to have sold nearly US $200 million worth of precious stones at the last Rangoon auction in March.

The fair just ending attracted buyers from mainland China, Taiwan, Hong Kong and Singapore, according to Xinhua.

Bangladesh to Issue Bay of Bengal Gas Search Licenses

Bangladesh has announced plans to award offshore exploration licenses to hunt for oil and gas in the Bay of Bengal, but promises that any drilling will steer clear of contentious waters bordering Burma.

Exploration has been stalled for years but the new Dhaka government is being forced to act because of a worsening energy shortage in the country.

Bangladesh recently submitted its sea boundary claims in the Bay of Bengal to the United Nations after failing to reach agreement in long-running talks with the Burmese authorities.

“The government may award only three to four blocks to two oil companies as it does not want to take any decision right at this moment about the blocks that are in the offshore areas which have also been claimed by India and Myanmar,” an unnamed official from state energy firm Petrobangla was quoted by The Star newspaper of Dhaka as saying this week.

Bangladeshi navy vessels last year surrounded a drilling rig of the South Korean firm Daewoo in contentious waters and forced its withdrawal.

Daewoo said it was working with a license provided by the Myanmar Oil and Gas Enterprise.

Indonesia Seeks Closer Trade Ties with Burma

Indonesia is bidding to improve its trade links with Burma by creating direct economic links.

Although trade between the two countries is improving there are no direct air links and banking arrangements.

Officials in Jakarta, quoted by the Jakarta Post this week, say these are obstacles hindering further bilateral trade.

At present, Burma-Indonesia trade is conducted via third countries of the Association of Southeast Asian Nations—Singapore banks and Malaysian ports—the newspaper said.

Burma buys oil from Indonesia, which in turn imports Burmese farm produce.