Japan’s Nikkei business daily reports that technology firm NEC will open offices in Myanmar to meet the anticipated growing demand for information technology infrastructure. Like others, including Japan’s own KDDI, NEC is betting on manufacturers and retails from a number of different countries entering the Southeast Asian nation as it continues its political reformation.
NEC’s first office branch will open in the city of Yangon next month, with a second in the capital of Naypyidaw in the spring. Their operation will start out with a small team, but they plan to add more personnel as demand increases. Their target is offer services to companies needing IT infrastructure to begin their own operations, as well as firms looking to lay undersea cables to develop telecommunications. The telecom market is especially expected to grow in the near future, as the Myanmar government has set a goal of increasing the country’s population with any phone service from a very small percentage, to 50% of the 50 million population with mobile phone subscriptions by 2015.
Japan’s second largest mobile phone carrier, KDDI, also just announced operations beginning in Myanmar in January 2013, looking to service the infrastructure market as well. The number of rapid political reforms this year has a number of industries, including auto manufacturing and airline service, eager to return to the country after pulling out over tensions. Japanese companies are also viewing Myanmar as strong alternative to China, where the increasing cost of labor and anti-Japanese sentiment has increased the desire to relocate.
[via Market Watch]