Taipei, June 14 (CNA) Taiwan has recently acted to strengthen its economic and trade cooperation with Myanmar as part of its efforts to seek closer ties with the Association of Southeast Asian Nations (ASEAN), an expanding regional economic bloc.

A memorandum of understanding (MOU) on mutual cooperation between the quasi-official Taiwan External Trade Development Council (TAITRA) and the Union of Myanmar Federation of Chambers of Commerce and Industry (UMFCCI) was signed in Yangon last week, according to a TAITRA statement.

UMFCCI Vice Chairman Zaw Min Win said during the signing ceremony that he welcomed Taiwanese investment in his country of 57 million people, which he described as having a sizable domestic market.

He also said Myanmar was a key player in regional economic integration in the Mekong River Basin, Bay of Bengal and ASEAN.

According to the TAITRA statement, a TAITRA-organized trade promotion delegation visited Myanmar and Cambodia last week to study the local economic and investment climate.

The group was composed of representatives of manufacturers of textile materials, garments, shoes, machines, electronic appliances, plastic and rubber goods, automobile parts and components, and cosmetics, the statement said.

The UMFCCI arranged a trade presentation in Yangon for the delegation to attract local buyers, TAITRA said.

Taiwan exported US$93.7 million worth of goods to Myanmar in 2008, 33.6 percent higher than in 2007, according to TAITRA.

With Myanmar's manufacturing sector underdeveloped, it has relied heavily on imports to satisfy its citizens' daily needs, and TAITRA suggested it was an ideal place to open labor-intensive production lines because workers are paid only US$30 to US$50 a month on average.

In addition, TAITRA sees Myanmar as a place suitable for the development of the energy industry and of other businesses such as precious stone processing, farming and fish breeding due to its abundant natural resources.

Myanmar has one of the world's worst human rights records and the United States imposed economic sanctions on the country beginning in 2004.

The sanctions and the existing political environment have cast a shadow over local economic activity, but the TAITRA believes that change could be forthcoming after next year's general election, enabling the country to develop its economic potential.

It suggested that Taiwanese businesses develop a foothold there to be ready to take advantage of the changes when they occur.

(By Elizabeth Hsu)

Source: Taiwan News