Myanmar Investment Guide (Part-1) 26-12-2017

1. MYANMAR IN BRIEF

1.1 Geography

Myanmar is the second largest country in Southeast Asia and has a total land mass of 261,228 square miles (676,577 sq km). It stretches 582 miles (936 km) from east to west and 1,275 miles (2,051 km) from north to south. It shares a 1,370 mile (2,204 km) border with China and an 832 mile (1,338 km) border with India. Other bordering countries include Lao PDR, Thailand and Bangladesh. Myanmar’s extensive coastline stretches 1,759 miles (2,832 km) long and its access to sea routes to facilitate increased regional trade gives it the potential to become a trading bridge between China, South Asia and Southeast Asia. Myanmar is richly endowed with natural resources such as minerals, natural gas, fresh water and marine produce, as well as having plentiful forests and vast quantities of untapped arable land.Myanmar’s level of urbanisation remains lower than the Southeast Asian verage: around 13% of the country’s population of 51 million reside in cities, while across Southeast Asia, the figure is lmost three times higher, at 37%. Myanmar’s cities – 30 of which have populations of more than 100,000 – appear set
to become major growth hubs in the coming years. The former capital of Yangon is the country’s commercial centre and is the largest city in Myanmar, with a population of more than five million. Mandalay and Mawlamyine are second and third respectively. The Delta region in the south and the Dry Zone in the central plains are the most densely populated regions, and together contribute a significant chunk of Myanmar’s GDP. Myanmar’s urban areas present significant opportunities for new sales markets and consumer products.

1.2 Economy

The introduction of sweeping economic reforms over the past three years have liberalised Myanmar’s economy and opened the doors to foreign investment and trade. In 2012, the Myanmar Kyat was floated and a Foreign Investment Law enacted to facilitate growth and attract foreign investment. The Special Economic Zones Law of 2014 provides further incentives for foreign investors looking to enter Myanmar’s market, while tax reforms have substantially reduced profit taxes. As a result of this process of economic liberalisation, Myanmar’s GDP growth surged to 7.5% in 2013 (ADB) and is expected to surpass 8% by 2015. Myanmar now stands poised to achieve the highest GDP growth rate throughout Southeast Asia. Myanmar is a member of the ASEAN Economic Community (AEC), which will commence operations at the end of 2015. AEC aims to strengthen regional cooperation and increase regional trade. AEC will provide Myanmar with the opportunity to establish itself as a vital trade hub and production base between ASEAN, China and India.

Wai Hin Oo
HFS
Myanmar