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Business opportunities for finnish companies & international financing in myanmar, presentation at Finpro Market Opportunity Day
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Business Opportunities for Finnish Companies & International Financing in Myanmar
KAI TUORILA8.5.2014
11/04/2023 2© Finpro
Industries with Most Opportunities
Energy insufficient energy supply, private investments allowed
Environment Waste management, waste to energy, industrial waste water, biomass
Forestry from exporting logs to process for my value added products
Mining Untapped resources - Gold, copper, lead, zinc, nickel and etc.
Telecom mobile networks, optical lines
Real Estate & Tourism Hotels, office space, service apartments, 2000km sandy beaches
Transportation infrastructure & Industrial Estates Deep seaports & industrial zones, roads, railways, airports
Capacity Building / Education training of local authorities and private sector
11/04/2023 © Finpro 3
Energy & Environment
Only 25% of the population gets electricity from the Government grit !
IPP for industrial zones and major cities
Coal, gas, hydro 6 new power plant projects
nearby Yangon Biomass & Biogas
Agri waste, waste water Renewable energy
Solar, Wind Waste to energy
11/04/2023 © Finpro 4
Environment
Municipal solid waste management
Yangon, Mandalay, NayPyiTaw
Waste collection a big challenger
80% organic waste Industrial waste water
treatment Mandalay
Water purification Salt removal
Waste to energy
© Finpro 5
Forestry
From log smuggling to value added exports
Teak (approx. 70% of world’s teak wood reserves) and other hardwoods
Development of wood processing industries – need for new machinery and knowhow
EU’s FLAG certification issue – tracebility, documentation
Plantations Regional and global rubber,
pulp&paper industries looking for opportunities
11/04/2023 © Finpro 6
Mining
Plenty of Untapped Resources Gold, gemstones, copper, lead,
zinc, nickel, tin, antimony, chrome, uranium etc..
New Foreign Investment Legislation
Foreign businesses would be allowed to own 100% of mining projects
Exempt from income taxes for the first five years of operation in Myanmar
Foreign investors able to lease land for up to 50 years with possibility to extend 2 times 10 years
Australian and other multinational companies waiting further clarifications
• This mining site, like others along the Irrawaddy River, is a concession given by Burma’s ruling military junta to local warlords or businessmen.
11/04/2023 © Finpro 7
Telecom
Approx. 7% mobilephone penetration in 2012 !
Official Telecom Licenses Telenor (budget 1 billion
Euros, technology from Ericsson and Chinese, license to build and operate 15 years)
Ooredoo (budget 15 billion USD, technology from Nokia and Chinese).
Myanmar Post & Telecom (MPT)
Yatanaporn Teleport Army
Internet Users the country had 400,000 Internet
users (0.8% of the population)
11/04/2023 © Finpro 8
Real Estate
Real Estate Booming Hotels (47 new hotel
investment projects approved for Yangon, Condominiums and Service Apartments, Offices etc.
Ownership and Land Leases
Land leasing for foreigners up to 70 years
Law allows foreign investment for buildings taller than six stories and must be serviced by elevators
11/04/2023 © Finpro 9
Tourism
Tourist Master Plan 2013-2020
Reached 1 million foreign visitors in 2012
Targeting 3.01 million arrivals for 2015 and 7.5 million arrivals by 2020
Tourist Destinations Yangon, Mandalay Pagan, Mon state, Shan
state.. 2000 kilometers of seaside
and thousands of Islands
11/04/2023 © Finpro 10
Transportation Infra & Industrial Estates
New Deep Seaport Developments
Dawei, Thilawa, Sittwe, Phatein
Airports New international airport for
Yangon Upgrade of regional airports
Railways Roads Rivers
Huge need for dredging!
Industrial Estates Deep seaports Yangon Border areas with Thailand
11/04/2023 © Finpro 11
Used and New Machinery
Presently huge market for 2nd hand machinery
Construction machinery Agricultural machinery Transportation Equipment Forestry and wood
processing Generators
Fast developing market for new machinery
Local businessmen looking for foreign machinery dealerships
Main street and construction site in Yangon, Myanmar
11/04/2023 12© Finpro
International Financing
Asian Development Bank (ADB) $1 billion for 2013-16. New plan
after 2015 election (one priority area rural off-grid renewable energy)
World Bank $2 billion package for agriculture,
energy and health European Union
200 million from 2011-2013 for rural development, health, trade certification
MoU signed to start EU investment bank activities
Finnish Financing EEP Mekong, Finnfund IKI financing for capacity building,
Other ?
*World Bank Group President Jim Yong Kim visits the Myanmar North Dagon Township Hospital.
11/04/2023 13© Finpro
Summary
Large untapped natural resources Need for Electricity investments have 1st priority Large infrastructure investments expected for Telecom, Logistics Development for Health and Education Huge need for international financing to activate infra projects (?) but
ADB, World Bank and bilateral financing from many countries pouring in
Existing market for 2nd hand (and new) generators, transportation-, agricultural-, forestry- and construction machinery
“We might be 2-3 years too early for our business, but if we come back after 2-3 years, we will be already too late..!”
Finpro – Finland Trade Center in Thailand Kai Tuorila
+66 (0) 81 815 2029