Investment Opportunities

Myanmar

Win Tin

Assistant Director

Directorate of Investment and Company Administration 1

Myanmar in Brief Location: Southeastern Asia, bordering the Andaman Sea and the Bay of Bengal, between Bangladesh and Thailand

Geographic coordinates: 22 00 N, 98 00 E

Area: total: 678,500 sq km land: 657,740 sq km water: 20,760 sq km

Land boundaries: total: 5,876 km border countries: Bangladesh 193 km, China 2,185 km, India 1,463 km, Laos 235 km, Thailand 1,800 km

The length of the coastline: 1,385 miles

Climate: summer, rainy season and cold season

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Myanmar in Brief (Cont.)

The largest country in mainland South East Asia

Location is geo-strategic, being situated at the tri-junction of South East Asia-

South East Asia and East Asia

Endowed with abundant natural resources

A prime country for investments in the region

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Topography can roughly be divided into 3 parts: the Western Hills Region, the

Central Valley Region and the Eastern Hills Region

Has three seasons namely summer from March to May, rainy season from June

to October and cold season from November to February

Myanmar in Brief (Cont.)

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Agriculture

agro-based country

Potential projects

- perennial plantation for industrial crops such as rubber, oil palm, cashew nuts; seasonal plantations such as pulses, maize, oilseeds; orchard crops plantations such as mango, banana, pineapple etc and higher value fruits and vegetables. - herbal plantation, organic farming. - sugar industry, cotton industry, jute and kenaf industry, rubber industry, oil palm industry, edible oil industry, food processing industry, biofuel industry, animal feed industry, tropical fresh fruit industry. - fertilizer industry, pesticides industry, seed industry

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EXISTING INVESTMENT & POTENTIALS IN AGRICULTURE SECTOR

• Foreign investment in this sector is only USD 173.10 Million,

which Is 0.48% 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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a long sea coastline of 2,832 kilometers associated with

229,000 square kilometers of continental shelf and

486,000 square kilometers of exclusive economic zone

potential in fresh water fisheries.

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fishing right is not granted to foreign investors

foreign investors are allowed for breeding in livestock and fisheries sector such as freshwater fisheries and marine fisheries

production of value added products together with ice plant, processing plant and cold storage are allowed either in the form of hundred percent foreign- owned or joint venture

Production of animal feed products

Value-added marine products industries are very promising.

Livestock and Fishery

INVESTMENT OPPORTUNITIES IN FISHERIES & LIVESTOCK SECTOR

• 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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Forestry

Very rich in forest 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

Mining

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Rich in mineral resources such as copper, gold,

lead, zinc, silver, tin and tungsten, antimony,

chromium and nickel.

Energy Business

• 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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Hydropower projects

• Several power plants are under implementation which respectively are located in Mandalay, Magway, Bago divisions, and Rakhine state as well as Chindwin river valley.

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Investment Potential of Myanmar (Cont.)

Energy Sector

Power

Manufacturing

potentials for cooperation in the downstream projects in Energy Sector

such as refinery plant and fertilizer plants.

Developing together with other sector such as agriculture, fishery,

mining and oil and gas sectors ; plenty of opportunities to invest in

manufacturing sector such as labour intensive industries, Small and

Medium Enterprises (SMEs) and production Network FDI projects.

At least 48,638 megawatts can be generated from hydro all over the

country in the Ayeyarwaddy, Sittaung, Thanlwin and Chindwin river

basins and only about 3,360 megawatts has been developed so far.

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Manufacturing

Ministry of Myanmar Industrial Development is a New Ministry, to establish

source industries for national industrial development in Myanmar. The Ministry of

Myanmar Industrial Development was established by March 2011.

Objectives

(1) to establish infrastructure and develop the source industry for national

industrial development in three sectors.

(a) Mechanical Industry

(b) Electronic Industry

(c) Aviation and Aerospace Industry

(2) to development the technology based industry (mechanical), knowledge

based industry (electronic) and integrated technology based industry

(aviation and aerospace) based on R & D centres for sustainable

development in industrial sector in order to boost national economy

development

(3) to encourage, and enhance the capacity of SME’s in government, and

private sectors.

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Three Pillar for Industrial Development :

(1) Mechanical Industry Complex

(2) Electronic Industry Complex

(3) Aviation and Aerospace Industry Complex

(1) Mechanical Industry Complex

- heavy industry

- basic machinery industry

- production line industry

- plant industry

- central laboratory

(2) Electronic Industry Complex

- basic electronic industry

- special system industry

- electronic laboratory

(3) Aviation and Aerospace Industry Complex

- basic aviation and aerospace industry

- aviation and aerospace production industry

- special system industry

- aviation and aerospace laboratory

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The Myanmar Special Economic Zone Law(SEZ)

High-tech industrial zone

Information and telecommunications technology zones

Export processing zone

Port area zones

Logistics and transportation zones

Sub-trading zones

Service business zones

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The Myanmar Special Economic Zone Law(SEZ)

Production based businesses

• goods processing business

• hi-tech production business

• Industries

• Agriculture

• livestock breeding and fishery

• mineral produce business

• forestry produce business;

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The Myanmar Special Economic Zone Law(SEZ)

Services business

• Trading

• logistics and transportation

• Storage

• hotel and tourism

• education and health

• residential quarters

• infrastructure supply and support centers

• green areas which conserves and protects the natural environment

• recreation and resort centers

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The Myanmar Special Economic Zone Law(SEZ)

Infrastructure construction businesses

• Road

• Bridge

• Airport

• Port

• Electricity

• communication and water supply

• environment conservation and protection

• wastes control

Other businesses

• determined by the Central Body, with the approval of the Government.

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Foreign Investment of Permitted Enterprises as of (30/10/2011)

(By Sector)

(US$ in Million)

Sr. No. Particulars

Permitted Enterprises

No. Approved

Amount %

1

2

3

4

5

6

7

8

9

10

11

12

Power

Oil and Gas

Mining

Manufacturing

Hotel and Tourism

Real Estate

Livestock & Fisheries

Transport & Communication

Industrial Estate

Agriculture

Construction

Other Services

4

104

64

159

45

19

25

16

3

7

2

6

14529.742

13815.375

2794.463

1751.587

1064.811

1056.453

324.358

313.272

193.113

173.101

37.767

23.686

40.27

38.29

7.75

4.86

2.95

2.93

0.90

0.87

0.54

0.48

0.10

0.07

Total 454 36077.728 100.00

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Foreign Investment of Existing Enterprises as of (30/10/2011)

(By Sector) (US$ in Million)

Sr. No. Particulars

Existing Enterprises

No. Amount %

1

2

3

4

5

6

7

8

9

10

11

12

Power

Oil and Gas

Mining

Manufacturing

Hotel and Tourism

Real Estate

Transport & Communication

Industrial Estate

Agriculture

Livestock & Fisheries

Construction

Other Services

4

60

15

99

40

14

9

3

7

11

2

6

14529.742

13192.231

2415.704

1304.189

981.349

827.140

210.042

193.113

173.101

76.911

37.767

23.686

42.78

38.84

7.11

3.84

2.89

2.44

0.62

0.57

0.51

0.23

0.11

0.07

Total 270 33964.975 100.00

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) Foreign Investment of Permitted Enterprises as of (30/10/2011)

(By Country)

(US$ in Million)

Sr. No. Particulars

Permitted Enterprises

No. Approved Amount %

1 2 3 4 5 6 7 8 9

10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

China Thailand Hong Kong Republic of Korea U.K* Singapore Malaysia France U.S.A Indonesia The Netherlands Japan India Philippines Russia Federation Australia Austria United Arab Emirates Canada Mauritius Panama Vietnam Germany Denmark Cyprus Macau Switzerland Bangladesh Israel Brunei Darussalam Sri Lanka

32 61 38 47 51 74 38

2 15 12

5 22

5 2 2

14 2 1

14 2 1 2 2 1 1 2 1 2 1 1

1

9603.168 9568.093 6308.495 2938.857 2659.954 1818.613

975.097 469.000 243.565 241.497 238.835 211.902 189.000 146.667

94.000 82.080 72.500 41.000 39.781 30.575 29.101 23.649 17.500 13.370

5.250 4.400 3.382 2.957 2.400 2.040 1.000

26.62 26.52 17.49

8.15 7.37 5.04 2.70 1.30 0.68 0.67 0.66 0.59 0.52 0.41 0.26 0.23 0.20 0.11 0.11 0.08 0.08 0.07 0.05 0.04 0.01 0.01 0.01 0.01 0.01 0.01 0.00

Total 454 36077.728 100.00

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Korea’s Investment in Myanmar (as of October,2011)

Foreign Investment of Permitted Korea Enterprises

Sr. No. Particular No. of Enterprises Approved Amount

(US$ in million)

1 Agricultural Sector 1 62.000

2 Livestock & Fisheries Sector 2 14.600

3 Manufacturing Sector 33 126.374

4 Oil and Gas Sector 10 2733.888

5 Others 1 1.995

Total 47 2938.857

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Korea’s Investment in Myanmar (as of October,2011)

Foreign Investment of Existing Korea Enterprises

Sr. No. Particular No. of Enterprises Approved Amount

(US$ in million)

1 Agriculture Sector 1 62.000

2 Livestock & Fisheries sector 2 14.600

3 Manufacturing Sector 26 104.554

4 Oil & Gas Sector 9 2695.188

6 Other Services 1 1.995

Total 39 2878.337

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Investment Opportunities

Tourism

Energy

Hydro Power

Industry

Agriculture

Forestry

Mining

Fishery Jewelry

Thank You

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