The mining sector in the Mekong region will remain underdeveloped and dominated by domestic players in the coming years as foreign investment flows into the sector will be minimal amidst a myriad of risks, a recently published Mining in the Mekong Region report concludes.
Fitch Solutions Macro Research’s outlook for mining in the Mekong region report maintains that Myanmar will be an outperformer in the region while Thailand will underperform.
The outlook forecasts large, untapped mineral deposits of the countries in the Mekong region. While the Mekong region boasts rich mineral deposits of gold, copper, iron ore, bauxite, lead, tin and zinc, foreign investment flows into the sector are expected to remain low due to political uncertainty, resource nationalisation sentiment and poor infrastructure.
Myanmar is expected to lead in the Mekong region for mining industry growth, driven by the high production growth of tin, lead and coal. The country is experiencing a broadbased economic boom, while the construction sector continues to grow.
In contrast, Fitch reports that Thailand will be the underperformer of the region due to risk of political uprising and delays and cancellations of infrastructure projects.
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