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Abstract

This Independent Study aimed to study factors influencing investment decision in Union of Myanmar of Chiang Mai businessmen and investigate problems and obstacles in investing in Union of Myanmar. This qualitative study employed documentary research and interview as research methods and descriptive analysis was used as a data analysis method. The data revealed that there were four factors influencing investment decision in Myanmar of Chiang Mai businessmen. Firstly, a political factor was highly influential and important in investment decision because the political reformed by the government had caused the belief in the stability of the political situations in Myanmar. The second factor was the wage and employment in Myanmar was still cheap which positively affected business and trades along the border. The third factor was the geography of Myanmar which was abundant in natural resources. In addition, many neighboring Chiang Mai provinces, in which the locals shared cultures and lifestyle, positively affected business and trades along the border. The final factor was about trade and investment law in Myanmar. After the economic reform, the law had provided more benefits for international investment. Though Myanmar has been a target country which had high investment potentials and opportunity, there were many problems and obstacles. Firstly, the insufficient and low coverage of infrastructure caused the inconveniences in trades and investment. The second problem was the outdated financial and banking systems. Thirdly, the government did not have definite border trade policies. The fourth problem was drugs along the border. The fifth problem was the language used. Since there were many ethnic groups, there were many languages used in conducting business. Furthermore, there have been corruptions in and overlapping of the government organizations. The seventh problem was the political instability of the government. Therefore, it can be suggested that the government should take an important role in solving trade problems along the border to create trade stability. In addition, the imported product limitation and prohibition measures should be abolished. Complicated and overlapping customs formality should also be decreased. Finally, temporarily permitted point at Ban Lak Taeng, Wianghaeng District should be officially opened.