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Business Opportunity in Myanmar Moe Myint Kyaw Republic of Union of Myanmar Federation of Chamber of Commerce & Industry
Business Opportunity in Myanmar
Moe Myint Kyaw
Republic of Union of Myanmar Federation of
Chamber of Commerce & Industry
Myanmar in the Past!
“…In the 1950’s Myanmar was seen as one of
the Asian economies with the most potential.
It was the world’s largest rice exporter,
exported oil to India, had timber, gems,
minerals and good supplies of many other
natural resources. It was also under-
populated, with a well-educated workforce
and a parliamentary system…”
(David Steinberg, Georgetown University)
Interview with KWR International Advisor (edited)
“Myanmar Naingan, Mingalaba”
President Obama Said on 19th Nov 2012
“…….I came here because of the importance
of your country. You live at the crossroads of
East and South Asia. You border the most
populated nations on the planet. You have a
history that reaches back thousands of years,
and the ability to help determine the destiny
of the fastest growing region of the
world…….”
Area
676,577 sq km
60 million
Population
Coastline
2,832 km
New Capital
Naypyitaw
•Bangladesh 193 km, •India 1,463 km, •China 2,185 km, •Lao 235 km, •Thailand 1,800 km
China: 1,300 mil
GDP: $ 10,090 bil
60 mil
GDP
$76.5bil
India: 1,200 mil
GDP: $ 4,060 bil
Bangla:158 mil
GDP: 258 bil
Lao: 7mil
GDP: $ 15 bil
Thailand: 67 mil
GDP: $ 622 bil
Population: 2,800 mil (41% of World)
GDP: $ 15,088 bil (17% of World)
Transit Trade to
Billion Population
Maesod-Yangon: 450 km
Yangon-Mdy: 690 km
Ygn-Kunming: 2,020 km
Yangon-Tamu: 1,230 km
Yangon-Muse: 1,150 km
Top Ten Export Items of Myanmar (2011-2012)
10
No Items Value ( USD in Million)
1 Natural Gas 3463.482
2 Bean and Pulses 1120.938
3 jade 780.340
4 Marine Products 705.866
5 Garment 498.608
6 Rice 324.622
7 Rubber 311.090
8 Teak log 283.923
9 Hardwood Log 272.883
10 Corn 216.789
Top Ten Import Items of Myanmar (2011-2012)
No Items Value (USD in Million)
1 Petroleum Products 2079.765
2 Vehicles & Spare Parts 1178.761
3 Iron & Steel Construction materials
603.768
4 Iron and Steel Materials 512.460
5 Machinery and Spare Parts 511.518
6 Palm Oil 388.291
7 Plastic Raw Materials 314.129
8 Ships, Boats and Spare Parts 311.383
9 Pharmaceuticals 226.061
10 Fertilizers 174.590
1
1
Age
Group
Male Female Total %
15-19 yr 2.90 2.79 5.70 9.5%
20-24 yr 2.77 2.69 5.46 9.1%
25-29 yr 2.57 2.54 5.12 8.5%
30-34 yr 2.34 2.38 4.73 7.8%
35-39 yr 2.10 2.18 4.29 7.2%
40-44 yr 1.84 1.96 3.80 6.3%
45-49 yr 1.58 1.71 3.30 5.5%
50-54 yr 1.31 1.44 2.75 4.6%
55-59 yr 1.06 1.19 2.26 3.8%
Total 18.47 18.88 37.35 62.25%
Work Forces in million
Minimum Labor Wages and
Labor Law is still at
implementing stage
Myanmar Cambodia Malaysia Thailand
$70-80 $90-100 $300 $200
Current Market Wages in USD
per month
13
Mandalay Ind. Zone
Myingyan Ind. Zone
Meiktila Ind. Zone (3)
Monywa Ind. Zone
Kalay Ind. Zone,
Shwe Bo Ind. Zone (3)
Magwe Ind. Zone,
Pakokku Ind. Zone
Yenanggyaung Ind.
Zone (3)
Pathein Ind. Zone
Myangmya Ind. Zone
Hinthada Ind. Zone (3)
Myeik Ind. Zone (1)
Pyay Ind. Zone
(1)
Mawlamyine Ind.Zone (1)
Taunggyi Ind. Zone (1)
Yangon Ind. Zone (14)
Industrial Zones in Myanmar
30 Industrial Zones are
already developed
In the SEZ plan, SEZ and industrial zones will be as follows;
Special Industrial Zone (for FDI)- 2300 acres
Local Industrial Zone- 430 acres
Singapore Myanmar Development (SINMARDEV) Industrial Zone -247 acres
Sea ports and container yard
Thilawa Special Industrial Zone – 3,170 acres
Conceptual Image of
Dawei Master Development Plan
Location
Made Island., 11.2 km S/E of Kyaukphu
Geographical Position
19 H 22'.6 N, 93 H 40'.8 E
Approach channel
LAD 24 m, Tidal Range 2~2.7m
Habour Area
LAD 20 m, Sea Room 1000 m ~ 1600 m
Prosperity
o Most appropriate approach to cope western corridor.
o Save sailing distance about 5000 Km compare with existing
sea route through Malacca Strait to China East Coast.
o Main Outlet of ocean route for land locked regions' trade.
o Short linkage to sea outlet for land locked provinces of China
and Lao.
o Opportunity for transporting of Container, General Cargoes,
Crude Oil and Gas.
o Shortest trade route from India to China and Lao.
Kyaukpyu Deep Sea Port Project
Kyaukpyu
Sittwe
16
Made Is.
Land Utilization Net sown
acreage of
crop land
15%
Fallow
Land
1% Waste
Land
10%
Reserved
Forest
22%
Other Forest
27%
Unclassified
Land not
suitable for
crop land
25%
Total Crop Land 10.273 mil Hectare
Total Rice Sown Area: 8.09 mil Hectare
Total Paddy Production: 32.68 mil MT
Total Rice Production: 22.88 mil MT
Domestic Rice Consumption: 19.45 mil MT
Second Largest Bean exporter of the World
Total Export about 1.5 mil MT per year
Total developed farm
area about 160,000
Hectare
Exclusive Economic
Zone 486,000 sq km
Continental Shelf of total
228,000 sq km
Fishery Sector
SEAFOOD PROCESSING FACILITIES
Total of 131 factories & 13 got EU Approval
Total Export in 2011-12 is US$ 653 mil & 386,781 MT
2
2
FORESTRY SECTOR
Potentials for Value added
production of other Forestry
Products such as Bamboo,
Cane, Rattan , etc..
50% of Total Land Area is
Forest area
Myanmar is major exporter of
teak in the world holding 75%
of world market share
Forestry Products export is
about 8% of Total Export
Myanmar Teak is the Best in the
World
24
MINERAL SECTOR
Eastern
Highlands
Central
Belt
Western
Ranges
Lead,Zinc
Copper
Silver
Tungsten
Antimony
Iron
Porphyry
Copper
Gold
Coal
Oil & Gas
Nickel
Chromite
Platinum
Jade is second largest export item
with the amount of USD 2.2 Billion.
2.8 Billion USD investment by 64
Enterprises.
Biggest Jade Deposit in the World
Myanmar Ruby is the
Best in the World!
Famous since 13th
Century
27
Oil and Gas Bearing Areas of Myanmar
SEDIMENTARY BASINS
1. Rakhine Coastal
2. Hukaung
3. Chindwin
4. Shwebo-Monywa
5. Central Myanmar
6. Pyay Embayment
7. Ayeyarwady Delta
8. Bago Yoma Basin
9. Sittaung Valley
10. Mepale
11. Mawlamyine
12. Namyau
13. Hsipaw-Lashio
14. Kalaw
15. Rakhine offshore
16. Moattama offshore
17. Tanintharyi offshore
STATUS OF EXPLORATION
(Offshore)
Thoroughly Explored Basins
• Rakhine Offshore
• Moattama Offshore
• Tanintharyi Offshore
STATUS OF EXPLORATION
(Onshore)
A. Thoroughly Explored
Basins
1. Central Myanmar
2. Pyay Embayment
3. Ayeyarwady Delta
(Only Part of the Basin)
B. Explored to Some Extent
1. Chindwin
2. Rakhine Coastal
C. Very Little Explored
1. Hukaung
2. Shwebo-Monywa
3. Bago Yoma
D. Not Explored Yet
1. Hsipaw-Lashio
2. Namyau
3. Kalaw
4. Sittaung Valley
5. Mawlamyine
6. Mepale
(Pipeline size varies from 6" to 20")
NATURAL GAS PIPELINE
NETWORK
Onshore Gas Pipeline
1980 miles
Offshore Gas Pipeline
520 miles
28
Total Gas Pipeline
2500 miles
Major Coal Deposits in Myanmar
Sr
No State/Division
Tonnage
(in million) Remarks
1 Shan 234.053 Lignite – Sub-
bituminous
2 Sagaing 220.94 Lignite – Sub-
bituminous
3 Taninthayi 8.35 Lignite – Sub-
bituminous
4 Magwe 1.93 Lignite – Sub-
bituminous
Potential Coal Reserves - 711 Million Tons
30
TOURISM SECTOR
Growth Rate
2009-10: 16.95%
2010-11: 4.88%
2011-12: 30%
Year round festivals with
simple and kind hearted
people
New white sand beaches
at Myeik Archipelago
comprising 800 islands
Thai visitors were ranking
first with 22.8%
Booming sector after reform
What is our Business
Direction?
Where is Myanmar?
"..Myanmar is at the critical
juncture, where she has
evolved from the military
administration putting an
end to armed conflict to
achieve sustainable peace
and moving toward a new
democratic era..."
(U Thein Sein at US Business Conference on July 13, 2012 in
Cambodia)
Myanmar, where to go?
".....Myanmar had to 'walk out' from a
centralized system that had been
practiced for a half-century and build a
mature democratic state by reforming
the Executive, Legislative and Judiciary
Bodies......"
(U Thein Sein at US Business Conference on July 13, 2012 in Cambodia)
President Obama Historic Visit to Myanmar and lifted all
import bans to United State
New Political System has been in place
New Democratic Government is established
Constructive Participation of MPs in Parliament
Major Opposition Party is now in the Parliament
Hard Liners in the Government tend to faint out
Economic Reforms are on Progress
Sanctions are moving away
More International Aids and Fundings are coming
More Investors are approaching
Making Ready for Sea Game 2013 and ASEAN
Chairmanship on 2014
Myanmar@Change
Progress in Economic Reform Removal of Export Tax 10%
Reduction of Bank Interest 18% to 13%
Reduction of Commercial tax to be 5% to majority
Liberalization of Agriculture & Petroleum Business
Liberalization of Land Lease for FDI
Liberalization Foreign Currency Exchange
Free import of Cars
Liberalization on Electrical Power Business
New Foreign Investment Law & SEZ Law
Auto Licensing of all major imports
On Progress to AEC 2015
Policy for Foreign Investment
Protect the interest of Myanmar Citizens
Protect the dignity of the State
Protect National Sovereignty
To allow environment-friendly Investment
(U Thein Sein at US Business Conference on July 13, 2012 in
Cambodia)
New Trend of Myanmar Seafood Industry
More on Value Added Products will
be focused
Import of Raw Materials and make
value added
Aquaculture Sector will be more
developed
Marine Catching will be more
sustainable
More HACCP & GMP factories will
coming up
Foreign Investors will involve more
in Aquaculture and Processing
Plants
Seafood Industry will spread around
the country especially along the
coastal regions
Develop more on Labour Intensive Industry
Shipping & Logistics Business will be one of the High
Demand Services
Infrastructure Development related Business
will be one of the most promising
Real Estate Development are in urgent need!
Thank You for Your
Kind Attention
