The Government of the Republic of the Union of Myanmar warmly invites responsible investors to seek and seize business opportunities in Myanmar to accelerate sustainable economic growth.
Seize Investment Opportunities in Myanmar … … in AGRICULTURE
Myanmar is a agro-based country with a vast potential of fertile land and abundant water resources. In 2014-15 a total area of 11.379 million hectares had been used for agriculture (net area sown). Given the landscape profile, topographic dimensions of Myanmar and different climatic areas in Myanmar, not only perennial plants, but also crops such as rice, pulses and beans, fruits and vegetables can be easily grown.
DICA is aiming at attracting responsible local and foreign investors, transforming the mostly traditional agricultural economy of today into a productive and sustainable agro-economy. To achieve this goal, increases in agricultural productivity (e.g. better irrigation, better seeds and techniques) and quality (e.g. seed quality, immediate post-harvest processing) are required.
Seize Investment Opportunities in Myanmar …… in AQUACULTURE & FISHERIES
Given Myanmar’s 2,832 kilometers of coastline along the Bay of Bengal and in the Andaman Sea, fisheries represent – as a natural matter of fact – an important opportunity for communities and businesses in the coastal areas of Myanmar (particularly in Rakhine State). Fishing grounds in Myanmar water are relatively less exploited than elsewhere. The aquaculture sector is operating almost 50,000 hectares of freshwater ponds.
According to statistics of the Department of Fisheries of the Ministry of Livestock, Fisheries and Rural Development, the production of fish and seafood has nearly increased to an eightfold between 1994 and 2014 demonstrating the importance of the sector to the economy as well as its strong potentials. Opportunities in the sector exist inshore (e.g. fish ponds, inland river systems and aquaculture), offshore as well as at deepsea locations.
Foreign investment in the fisheries sector is permitted to foreign investors in a joint venture with a local company. Recently, fishery products from Myanmar received approval to be exported to the European Union by certified producers. Myanmar enjoys preferential tariff arrangements with the European Union as a least developed country (LDC).
Seize Investment Opportunities in Myanmar …… through URBANIZATION
Likewise to other economies, Myanmar is experiencing a gradual migration process of population from rural to urban areas of Myanmar driven by a more diverse set of educational, professional and income opportunities. Hand-in-hand with urbanization come challenges as well as opportunities for local and foreign businesses addressing these needs and finding durable solutions for better and smarter cities in a more livable and a sustainable environment.
Changed demand patterns of the rapidly growing middle and consumer class open up new opportunities for the distribution of a larger spectrum of consumer goods (e.g. FMCG) as well as an emergence of new service industries (e.g. restaurants, entertainment, education).
Seize Investment Opportunities in Myanmar …… in TOURISMAND HOSPITALITY
The tourism and hospitality sector in Myanmar is evolving rapidly since the political and economic opening of the country – the number of visitors to the country has been growing nearly exponentially since 2011:
TABLE: International tourist arrivals (including air, sea and road)
Source: Ministry of Hotels and Tourism, Ministry of Immigration and Population
At the moment, foreign tourists (on their first short-term visit to Myanmar) mostly visit Yangon, Bagan, Inle Lake / Nyaung Shwe as well as Mandalay. However, Myanmar offers to date unexplored treasures of natural beautyin the whole of the country from Kawthaung in the tropical South-East to Putao in the Himalaya.
The table displays the current distribution of hotels, motels and inns/guesthouses in Myanmar and reflects the considerable under capacity of available accommodation in numerous locations outside of the urban centers Yangon and Mandalay. There is a need for both, affordable as well as high-class accommodation depending on the current demand.
TABLE: Distribution of available capacity of hotels, motels, inns/guesthouses (in FY 2014-15; including private owned, state-owned and cooperative-owned establishments)
|State / Region||No. of hotels, motels and inns||No. of rooms||No. of beds|
|Nay Pyi Taw||2||70||102|
Source: Ministry of Hotels and Tourism and Ministry of Cooperatives
Foreign investors may engage independently in hotel developments of 3-stars or higher standard, whereby local investors are encouraged also to consider opportunities in offering budget accommodation through guesthouses at international standards. For foreign companies, investments in tour companies, travel agencies, budget hotels, amusement parks and tourism-related public infrastructure projects are permitted on a joint-venture basis.
Seize Investment Opportunities in Myanmar …… in the POWER SECTOR
The power sector of Myanmar opens up abundant and immediate opportunities to foreign and local investors. The installation of considerable additional capacity to the current 4,422 MW as well as the rapid construction of transmission lines are national priorities. In order to reach the objective of full national electrification until 2030, the power sector of Myanmar is to grow to a multiple of its current size.
The abundance of locations suitable for hydropower generation, the available rich natural gas deposits and nearly unexplored potentials in solar power and wind power along with the expansion of the transmission system open miscellaneous investment potentials. In the medium run, Myanmar may even develop to a net exporter of electricity to neighboring countries.
Beyond 92 identified larger-scale hydropower development (for the future development of potentially additional 46.1 GW) along the Ayeyarwaddy, Sittaung, Salween and Chindwin River systems, also smaller-scale hydro power plants as well as other sources of energy (i.e. solar, wind, gas) have high potential to play a significant role for national power supply.
Seize Investment Opportunities in Myanmar …… in MANUFACTURING
The manufacturing sector opens up opportunities due to the significant domestic market of Myanmar, direct access to strategic markets of Southeast Asia (ASEAN Economic Community) as well as to China and India. Preferential tariff arrangements for exports of the least developed country Myanmar to various geographies (e.g. European Union, Japan) create distinct economic incentives for investments in Myanmar.
With comparatively low labor costs, rich natural resource endowments, a diverse agricultural base for further value-added production and the strong support of industrial investment as a priority of the Government of Myanmar, investors enjoy favorable conditions.
To facilitate investments in manufacturing, three Special Economic Zones (SEZ) in Thilawa (near Yangon), Dawei in Myanmar’s Southeastern Tanintharyi Region as well as Kyaukphyu in Rakhine State are currently under development along with a separate legal framework granting investment incentives to companies in these SEZ. Thilawa started its operation in 2015 as the first SEZ of Myanmar.
In addition to the SEZ, numerous industrial zones have been established throughout the country, i.e. 14 industrial zones in Yangon Region (e.g. Mingaladon Industrial Park), Mandalay, Monywa, Hpa An, Kalay, Shwebo, Myingyan, Meikhtila, Magway, Pakhokku, Yenanchaung, Taunggyi, Pyay, Mawlamyine, Pathein, Myaungmya, Hinthada and Myeik.
Seize Investment Opportunities in Myanmar …… in INFRASTRUCTURE DEVELOPMENT
The development of sufficient and better infrastructure is an important requirement to be able to physically carry the industrial and agricultural growth in Myanmar’s dynamic future. As stipulated in the National Comprehensive Development Plan, the Government prioritizes infrastructural and economic development along certain major trade paths through the country in order to facilitate the integration of Myanmar into production networks of the Greater Mekong Subregion (GMS) and Myanmar’s Western neighbors.
The Government of Myanmar has experience in conducting infrastructural projects under Build-Operate-Transfer (BOT) or other Public Private Partnerships (PPP)agreements with the private sector (e.g. in the railway and highway sector) and is welcoming investors for infrastructural improvement projects.
Seize Investment Opportunities in Myanmar ……in EXTRACTIVE INDUSTRIES (Minerals / Oil and Gas)
Myanmar possesses natural resources in abundance, such as predominantly the following minerals:
The Government of Myanmar is encouraging responsible investments in the field of the extractive industries. Investors may support the exploration and extraction of the natural resources according to international best practices. Responsible investments in extractive industries are necessarily to consider the implications on livelihoods of the local population, the environment, societal factors as well as the political economy in specific areas. Myanmar is a candidate of the Extractive Industries Transparency Initiative.
Seize Investment Opportunities in Myanmar …… in FORESTRY-BASED INDUSTRIES
Myanmar’s strong forestry sector offers numerous opportunities for involvement of local and international investors. The country is one of the leading producers of teak and hardwood (particularly Pyinkadoe and Padauk).
In order to prevent the continuation of unsustainable forestry practices and large scale log-harvesting particularly of teak, the Government of Myanmar strictly and effectively abandoned the export of unprocessed teak and hardwood in April 2014. According to the Department of Forestry, between 2000 and 2014, the total forest cover of Myanmar decreased from 348,680 sq-km to 304,725 sq-km equaling anaverage deforestation rate of approximately 1%.The ban on logging has proven to be effective in incentivizing more value-added production in wood-processing in Myanmar and increasing the GDP contribution of this sector.
The structural change offers opportunities to foreign and local investors to support this emergence of value-added and sustainable forestry e.g. by establishing new wood-processing industries in Myanmar. Furthermore, the stronger engagement of the private sector in the plantation business to restore forests in an environmentally and economically sustainable way is desired.