China is investing in Myanmar.

Myanmar has been one of the largest destinations for Chinese infrastructure investment over the past decade, particularly in hydropower. In fact, 40 per cent of Chinese-funded dams built since 2000 are located in Southeast Asia, and 30 per cent in Myanmar alone.

Since 2011, western countries have lifted sanctions on Myanmar and begun to ramp up investment. As a result, Myanmar has diversified its sources of foreign investment, but China remains the biggest source of FDI in terms of stock.

To boost infrastructure investment, Myanmar is looking to kickstart a number of projects with China, its largest investor.

China is also Myanmar’s largest trading partner, making up one-third of its total trade volume.

Foreign direct investment is conducive for growth and poverty alleviation. FDI and international market integration promote democratisation and reduce the incidence of armed conflicts in the long run. Such findings hold important implications for an increasingly open Myanmar economy.

Myanmar already has several garment factories in joint venture with entrepreneurs from Japan, China, Taiwan and South Korea.

The garment industry in Myanmar mainly caters to the cut-make-pack system. The industry employs over 3,50,000 people with women constituting 90 per cent of the workforce.

The garment industry in Myanmar is rapidly growing due to demand from the EU and Asian countries.