Opportunities in Myanmar

Agriculture Sector

Myanmar posses a land area of 676,577 sq meter – 50% of which is available for plantation of various crops that are in line with tropical weather conditions.

The Myanmar Government has invited both local and foreign investors to invest, under structures of Joint Venture or 100% investment, in the following areas:

  • Establishing Agro-based Industries
  • Assembling and manufacturing light agricultural machinery and small farm implements
  • Manufacturing agricultural inputs and related support products

Forestry Sector

About 85 species of tree in Myanmar are recognised as being able to produce good timber quality. Development of wood-based industry is a crucial aspect of the Forestry sector, and besides timber forests in Myanmar contain a wide range of non-wood forest products.

Major forest products include teak and hardwoods such as Pyinkatoe, Paduak, Ingyin and many others. Alos, minor products varieties, from Bamboo, Rattan, Charcoal, Beewax and editable Bird’s Nests.

The investment opportunity for the production of Teak and hardwood furniture is the most prosperous area, especially with the input of good design and modern technology equipment, processes and packaging.

 

Mining Sector

Myanmar has a considerable deposits of gold, copper, lead, zinc, silver, nickel, coal and Dimension Stones; such as granite, marble and limestone.

In 1989, Myanmar embarked on a policy of encouraging foreign investments and invited foreign companies to invest. The policy and objective of the Ministry of Mines is to encourage responsible and environmentally sound commercial exploitation, and the development of abundant but underutilised mineral resources in the country.

Six granite deposits are located in the country and an estimated ore reserve of deposits in the Mon State is 3.7 billion tons.

Regarding ornamental stones, the estimated ore reserve in the whole country is about 563 million tons. Gemstones such as rubies, sapphire, colored gemstones and jade are being exported. Myanmar is the primary source of top grade Jadeite, with Hpakant region being one of the highest deposited areas in the world.

Livestock & Fishery Sector

Ranking 5th position among all sectors, in its contribution to Myanmar’s economy, fisheries in Myanmar can be classified into freshwater fisheries and marine fisheries.

Myanmar has a long coastline of 2,832 kilometers, and the total area of swamps along the coast is about 0.5 million hectares; which provides a very good basic for the development of shrimps and prawn culture.

According to recent surveys and research, the Maximum Sustainable Yield (MSY) of the Union of Myanmar is estimated at about 1.05 million metric tons per year.

Transportation Sector

Myanmar has about 142,395 km of road networks, and the lengths of various categories of road are as below:

  • Union Highways                               18,740 km
  • Township network road                19,045 km
  • Major City road & other roads    26,472 km
  • Village & Boundary Area roads   78,183 km

The Ministry of Construction is promoting private sector participation in infrastructure development, on the basis of Built-Operate-Transfer (BOT) and other suitable PPP models; for the construction of Roads, Inland Cargo Deport, Ports and Airports.

Hydro Power Production Sector

Hydro Power production is one of the major sources for the generation of electricity, based on the rich water resources of the country.

For the Generation Sub-Sector, Foreign Direct Investment (FDI) can be made in the form of Joint Ventures, Build-Operate-Transfer (BOT) and other suitable PPP models; for suitable power generation projects. Local investors are also allowed to participate in schemes of Independent Power Producer (IPP) for hydropower projects.

Oil & Gas Sector

Myanmar’s petroleum sector is administered by the Ministry of Energy, which takes the leading role in the coordination, discussion and negotiation of the development of programs in energy sector. Myanmar Oil and Gas Enterprise (MOGE) under the Ministry of Energy, is responsible for conducting exploration and production of crude oil and natural gas, in both onshore and offshore areas.

The Ministry of Energy has invited multinational companies to participate in the exploration and production of crude oil and natural gas in cooperation with MOGE, on a production-sharing basis. In the onshore sector, a total of 47 blocks have been demarcated; which is comprised of 18 Production Sharing Contract (PSC) Blocks, 5 Exploration and Production (EP) Blocks, 10 Reactivation of Suspended Fields (RSF), 7 Improved Petroleum Recovery (IPR) Blocks and 7 MOGE Blocks.

26 blocks has been demarcated in the offshore sector.

Investment opportunities include:

  • Exploration and Production in petroliferous Onshore and Offshore Myanmar;
  • Rehabilitating to marginal fields and Enhancing to decline fields and suspended fields;
  • New Plants commissioning; Refinery, LPG, LNG, Fertiliser Plants;
  • Floating Storage Unit (FSU), Floating Storage and Offtake Facilities;
  • CNG refueling stations and necessary parts and kits;
  • Research and Development
  • Trading, Marketing and Retailing of Petroleum Products
  • Indispensable equipment to revamp and renovate Drilling rigs, Refineries and Plants.

Hotel & Tourism Sector

The Hotel and tourism sector is booming in recent years and global tourists are being attracted by the country’s unspoilt, scenic and historic places – and of course extremely nice local people and very safe travel experience.

Hotel business in Myanmar is allowed 100% foreign direct investment, for the development of 3 Star above rated hotels. However, tourism business is only allowed under a Joint Venture system.

Infrastructure & Construction Development Sector

There is a great need for building and the upgrade of the majority of infrastructure sectors in Myanmar. Myanmar’s construction industry is expected to grow at an annual minimum of 7.8% over each of the next 5 years.

The Government also recently announced the construction of over 120,000 apartments in the Yangon area, with the help of local and foreign investors and developers. The Yangon City Development Committee (YCDC) is aiming to finish the construction of over 9,500 affordable apartments by 2015.

The increase in the number of investment opportunities in energy and public infrastructure projects include:

  • Development Project for Greater Yangon – 39 townships
  • Affordable Housing Project – by The Department of Human Settlement and Housing Development (DHSHD)
  • Urban Development Projects – such as Mindama Secondary CBD Development
  • Thilawa Social Economic Zone Development and Urban Spatial Control Management projects.

Investment opportunities for foreign firms are based on the of Built-Operate-Transfer (BOT) and other suitable PPP models.

Dairy Farming Sector

There is great potential to develop the dairy farming sector in Myanmar, and Myanmar has been striving to boost production of milk products; to meet rising demand as it imported 40 million US dollars worth of product annually.

To reduce the amount of total imports, the authorities are calling for an increase in the breeding of milk cows.

Myanmar produced annually about 1.5 billion kilograms of milk, and over 226,570 kilograms of condensed milk from about 500,000 milk cows. The industry needs to upgrade in terms of planning, technology and financing – which limitations handicap the industry.

The Government is promoting the development of breeding dairy cattle, in order to boost dairy production locally. Presently, Myanmar has 14 million cows and steers, and some three million buffaloes. Local and foreign dairy firms have been invited to invest in raising dairy cattle, and Myanmar Livestock and Fisheries Federation will render necessary assistance, such as land lease and allocation.