Yangon, Myanmar - Advantage Austria · 2013-02-06 · Dominant Force in Myanmar’s national...
Transcript of Yangon, Myanmar - Advantage Austria · 2013-02-06 · Dominant Force in Myanmar’s national...
Thaung Su Nyein / UMFCCI
30th January 2013
Yangon, Myanmar
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A big welcome to the Austrian Delegation.
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Where are we headed?
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Place to be for investors
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Greater international stage!
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Free flow
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ASEAN Free Trade Agreement
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Myanmar Pop: 60 mn $57.5 bn
India Pop: 1.2 bn
$3.5 tn ME, EU, Africa
China Pop: 1.3 bn
$8.8 tn
Bangladesh Pop: 156 mn
$242 bn Thailand
Pop: 67 mn $540 bn
Laos Pop: 7 mn
$15 bn
TOTAL Pop: 2.8 bn
GDP: $13.2 tn
India, China and ASEAN
wealth could top the West
by 2030
With a total area of 676,577 sq km, it is the largest country in mainland South
East Asia. 8
64% 8%
4%
4%
2% 1% 17%
Food & Beverage Construction Materials
Minerals & Petroleum Apparel
Personal Goods Industry Raw Materials
Other
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38%
26%
10%
8%
7%
5%
6%
Natural Gas Agricultural Products Mineral Products
Marine Products Forestry Garments
Other
More than 70% of export goes to the Asian region 10
23%
13%
7% 6% 5% 4%
42%
Petroleum Products Automobiles & Spare Parts
Steel Iron & Steel Wares
Machines & Spare Parts Palm Oil
Other
More than 90% of imports come from the Asian region 11
40%
38%
8%
5% 3% 3% 1% 2%
Energy Oil & Gas
Mining Industry
Hotels & Tourism Property Development
Fisheries & Livestock Other
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Previous sanctions have lead to a local market which relies mainly on Asian products, with limited choice for consumers.
A Local Market of 60 Million People
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90% literacy rate
Population largely unemployed or under-employed
Abundant Human Resources
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Construction of roads, railways and ports is underway
Highway system links Myanmar to all neighbors
AEC- Asian Economic Community- 2015
Improved Connectivity
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Many natural resources, largely untapped
Very rich in ruby, jade, sapphire and limestone
Large reserves of copper, lead, zinc, tin, tungsten, gold, coal and barite.
OIL and GAS!
Abundant in Natural Resources
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June 2011 2.3 million vehicles
142,395 km of road network
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60 million population. 4 million mobile phones in service.
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Better environment for investors
Mainstreaming of investment process / Lower transaction
costs
Lower cost for registering property
Stronger financial sector / Financial sector reforms
Increased transparency and anti-corruption policies
Incentives for investment, simplified procedures for
businesses
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Natural resource based industries ◦ Natural gas
Largest export item
◦ Other mineral products
Many kinds of mineral resources
Still untapped mineral resources
Huge potential for agricultural production ◦ Potential cropping intensity
◦ Huge global demand
◦ Potential abundant
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Export oriented agro-based industries.
Labour intensive manufacturing – garment, footwear, toys, etc…
Regional market oriented industries.
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Depends on what you want to do and what your long term objectives are.
TRADING INVESTMENT JOINT VENTURES
• Many Myanmar looking for partners
• Very easy and cheap to be registered
• Should consider mutual benefits
• Selective
• Reasonable benefits
• Economic long term
• Must check current infrastructure
• Must be adaptable
• Must be flexible
• Some high costs
• Mutual benefit mutual risks
• Available with both private and government sector
• Economized land
• In kind relation
• Can sell or purchase equity
• Consider repatriation of profits
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Involves mainly in ◦ Agriculture
◦ Manufacturing & processing
◦ Trading
◦ Services
◦ Banking
◦ Construction
More than 90% of total GDP ◦ Nearly 100% in Agriculture
◦ About 70% in Industry
◦ About 65% in Trade
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Sr. Sub- sector Total Number Share %
1 Food & Beverage 27,642 63.94
2 Clothing& Wearing Apparel 1,681 3.89
3 Construction materials 3,278 7.58
4 Personal goods 1,036 2.40
5 Household goods 305 0.70
6 Printing & Publishing 329 0.76
7 Industrial raw materials 562 1.30
8 Mineral & Petroleum 1,893 4.38
9 Agricultural equipment 61 0.14
10 Machinery & equipment 126 0.29
11 Transport vehicles 289 0.67
12 Electrical goods 67 0.15
13 Miscellaneous 5,962 13.79
Source: Ministry of Industry 43,231 100
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Year State Co-operative Private
1986/87 41.6 4.2 54.2
1998/99 28.6 0.9 70.8
2000/01 27.6 1.2 71.2
2007/08 25.1 0.7 74.2
2009/10 7.4 1.4 91.2
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Dominant Force in Myanmar’s national economic development.
Contributing 34 % of GDP, 61.2 % of total employment and 15.4 % of export
earning in 2008-09.
Change from “mono crop” to “multiple crop” pattern.
Leading producer as well as exporter of beans and pulses among ASEAN and
second largest exporter in global market.
The government allowed leading private companies to involve in commercial
farming business with many incentives.
Extensive rice cultivation method of commercial farming that has never been
before.
Now, more than half million hectares are engaged in this program.
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EXISTING INVESTMENT & POTENTIALS IN AGRICULTURE SECTOR
Foreign investment in this sector is only USD 173.10 Million,
which Is 0.43% of the total investment.
Local investment in this sector is also Kyat 547.90 Million,
only 0.4% of its total.
Production of seeds and value-added production from
various crops are some potentials areas for investment in
Agriculture sector.
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Very rich in forest resources
Myanmar teak is highly reputable in the world market.
It has a large variety of timber species with some lesser
known species.
Production of value added wood based products is a
prosperous business area for investment.
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Long sea coastline of 2,832 kms
229,000 sq km of continental shelf
486,000 sq km of EEZ.
Value-added marine products industries are very promising.
Varied marine and inland fishery resources (shrimp , prawn
and fresh water fish breeding)
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There are (130) cold storage facilities in Myanmar, out of which (75) are situated in
Yangon Division.
Yangon Division has great potential for the extensive investment in cold storage
facilities.
There is no investment in the Cattle breeding and tremendous potential exists for
investment for high quality species.
There is illegal export of cattle to the neighbouring countries.
Production and export of meat is a great opportunity for the existing demand.
Organic farming of poultry and eggs production has abundant prospects to enter to
local and export market, investors can invest not only in production but also for invest
in service provision regarding Hygiene Certification, quality Inspection certification and
others.
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Rich natural energy resources.
Abundant hydropower potential.
FDI welcome from South Asian countries for energy
cooperation.
Private companies to invest in offshore and
onshore oil and gas exploration projects.
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Several power plants are under implementation which respectively are located in Mandalay, Magway, Bago regions and Rakhine State as well as Chindwin river valley.
Potential for Hydro Power Resources
Ayeyarwady river 2,170 km (1,348 miles)
Chindwin river 1,207 km (750 miles)
Thanlwin river 2,815 km (1,749 mile)
Sittaung river 420 km (261 miles)
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Many famous mines
Many opportunities to work under FDI in various fields of mining.
Mining extensively quality gems such as Rubies, Jade, etc.
Manufacturing of jeweler and jade carving are quite popular.
Myanmar ranks high among the Asian countries in terms of mineral potential.(copper, lead, zinc, tin, gold, limestone, granite and marble).
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Very Rich Rich Fairly Rich Poor
Jade,
Ruby,
Sapphire
Limestone
Copper,
Lead,
Zinc,
Tin,
Tungsten
Gold,
Coal,
Barite
Antimony
Silver,
Nickel,
Gypsum,
Iron
Cromite,
Manganese,
PGM Minerals,
Radioactive Minerals,
Diamond,
Fertilizer Minerals,
Fluorite,
Bauxite,
Mercury,
Kaolin,
Feldspar,
Quartz,
Bentonite,
Mica
Prospecting Permits 1 Year
Exploration Permit 1 Year
Feasibility Study 1 Year
Subsistence Mining
Permit 1 Year
Small scale Mining
Permit 5 Years
Large scale Mining
Permit 25 Years
Categories of Mining Permit
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Thank you for your attention!
Thaung Su Nyein / UMFCCI
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