Nissan to Assemble Cars, Trucks at New Myanmar Plant

EU Hears Allegations of Abuse of Myanmar Workers at Thailand Factory

Questions have been asked in the European Parliament about the treatment of Myanmar workers in Thailand after charges of criminal defamation and damage were brought in a Bangkok court against a Myanmar-based human rights campaigner by the fruit juice processing company Natural Fruit.

The Switzerland-based giant produces such internationally recognized brands as Nescafe instant coffee, Kit Kat chocolate biscuits, and Maggi soups and sauces, as well as baby foods, numerous snack products, and breakfast cereals. It’s not clear yet which will be produced in Myanmar.

Major Japanese vehicle maker Nissan Motor Company is to open a factory in Myanmar to produce cars and small trucks, the Tokyo business newspaper Nikkei has reported.

Nissan plans to partner with Tan Chong Motor Holdings of Malaysia and an as yet unnamed Myanmar firm to build a small plant which will “produce several thousand small passenger cars and pick-up trucks a year,” said Nikkei.

The vehicles will be assembled from parts built in other Nissan factories in the region, including Thailand. The location of the factory and details of the investment were due to be announced during a visit to Myanmar by Nissan’s chief executive Carlos Ghosn.

It will be the second production start-up by a Japanese vehicle manufacturer. Earlier this year, the Suzuki Motor Corporation announced the re-opening of its Yangon factory to build pickup trucks. The factory, which had been closed since 2010, is initially producing 100 vehicles a month.

Japan’s Mazda Motor Corporation also announced in late September it will start selling new vehicles soon in Myanmar.

China Seeks Contracts to Build Roads, Bridges and Improve Ports

Chinese companies are keen to win contracts to help develop Myanmar’s transport infrastructure, Beijing’s ambassador Yang Houlan said.

“The Chinese government attached importance to Sino-Myanmar cooperation in the transport sector, supporting the strength of Chinese enterprises to actively participate in port development, dredging and road and bridge construction,” the official news agency Xinhua quoted Mr. Yang as saying.

He made the proposal when he attended an official handover in Yangon harbor of 19 dredgers and supporting vessels supplied by the state-owned China National Aero-Technology Import & Export Corporation, also known as CATIC Beijing.

The dredging equipment was supplied with the assistance of a preferential loan provided by the Chinese government, said Xinhua.

The charges were laid against British national Andy Hall in connection with a film he made documenting alleged abuse of hundreds of Myanmar workers at a Natural Fruit factory. He accused the company of a host of rights violations, including illegally hiring underage Myanmar workers, paying wages below the Thai national minimum, and confiscating workers’ passports. Natural Fruit has denied all allegations.

Mr. Hall’s film was commissioned by Finnwatch, a group concerned about imports into Finland of unethical produce.

In a Sept. 18 video now on YouTube, Finnwatch executive director Sonja Vartiala said: “The legal process [in Thailand] is a farce. Natural Fruit is suspected of serious human rights violations. It’s the company’s managers and not Andy Hall who should be facing the threat of a trial.”

Nestlé to Open a Factory in Myanmar, State Agency Says

Giant processed foods company Nestlé has established a subsidiary in Myanmar and will soon build a production factory in the country, according to the Directorate of Investment and Company Administration (DICA). The new subsidiary, Nestlé Myanmar, was formed on Sept. 16, said DICA.

Nestlé upgraded its representative office in Yangon last year in anticipation of an increase in sales in Myanmar. Although it maintained a presence in Myanmar even when international sanctions were in force, Nestlé has until now kept a low profile in the country.

US, Indian Oil Firms to Explore Bangladesh Seas Adjacent to Myanmar

The Bangladesh government is to award three offshore blocks in the Bay of Bengal this month to ConocoPhillips of the US and India’s Oil and Natural Gas Corporation (ONGC), Dhaka newspapers said.

The two firms were the only bidders for the blocks which were among 12 offered by the government in December 2012. No bids for the other nine blocks were received.

Under the terms of the concession agreement, the companies will be allowed to sell up to 50 percent of any production to third parties without reference to the state oil and gas firm Petrobangla, said The Star newspaper. ConocoPhillips will get block 7, while ONGC will take blocks 4 and 9, the paper said.

ONGC is a partner in the development of Myanmar’s Shwe gas field in the Bay of Bengal, where the two neighbors had a naval confrontation in 2008 before their joint sea border was finalized following UN arbitration.

— WILLIAM BOOT