Myanmar is a very promising market. But it has many risks for Vietnamese investors because most of us lack experience in the market.— Photo go-myanmar.com

HCM CITY (Biz Hub)— Entrepreneurs doing business in Myanmar or have studied the market counselled patience for those hoping to enter the country, but warned there is no more time to lose.

Speaking at a conference on investment in Myanmar held in HCM City on Tuesday, Le Duc Duy, marketing director of Vinamit Joint Stock Company, said: "Myanmar is a very promising market. But it has many risks for Vietnamese investors because most of us lack experience in the market."

Competition there is very tough, especially in terms of price, he said.

Vietnamese products are often expensive due to high raw-material and transport costs, he said, so investors must be ready to suffer short-term losses if they enter the market.

Duy told Viet Nam News: "We need to promote investment in Myanmar right now or we will lose the opportunity.

"We are one step behind other investors. It is now or never.

"Vietnamese companies can compete in consumer products, food and foodstuffs, beverages, confectionery, and cosmetics," he said.

Vinamit carried out a study of the Myanmar market several months ago.

Other attendees said 85 per cent of the people in Myanmar are poor, and low-end segments are dominated by Chinese investors and manufacturers.

The remaining 15 per cent of the population prefer products from Thailand, the US and the EU, they said.

It is optimal for Vietnamese companies to find a prestigious local partner while entering Myanmar, they said.

One delegate said that an important issue for investors to consider carefully is financial payment since Myanmarese banks do not issue letters of credit.

"Vietnamese companies must have close co-operation with each other," Vu Kim Hanh, general director of the Centre of Business Studies and Assistance, said.

She urged investors to closely follow the market and said they should never quit.

Production in Myanmar remains underdeveloped, and the country imports around 80 per cent of its consumer products, offering a huge opportunity to foreign investors and manufacturers. — VNS