There is big opportunity, and and also big risk in the Mekong mining sector, according to recently published report.
Fitch Solutions Macro Research’s industry analysis maintains 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 amid a myriad of risks.
The report also predicts that Myanmar will be an outperformer in the region and that 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.
Read the full report here.