khine khine nwe_whef 2013 bangkok for dkkn
TRANSCRIPT
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Investment Opportunitiesin Myanmar(WHEF 2013, Bangkok)
Khine Khine NweJoint Secretary GeneralUMFCCIAugust 10, 2013
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Kunming
Strategic Location
ChennaiYangon
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GDP - composition by sector :agriculture: 43%industry: 20.5%
services: 36.6% (2011 est.)Labor force :
37.35 million (2011 est.)country comparison to the world: 19
Employment - by occupation :agriculture: 65%industry: 12%services: 23% (2011 est.)
Total land boundaries 5,867 km
- China 2,185 km- Lao 235 km
- Thailand 1,800 km
- Bangladesh 193 km
- India 1,463 km
https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2095rank.html?countryName=Burma&countryCode=bm®ionCode=eas&rank=19https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/rankorder/2095rank.html?countryName=Burma&countryCode=bm®ionCode=eas&rank=19https://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.htmlhttps://www.cia.gov/library/publications/the-world-factbook/docs/notesanddefs.html -
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Myanmar is well situated on the
Northern Corridor, North-South
Economic Corridor and East-WestEconomic Corridor and, Southern
and Western Corridors.
Although East-West Economic
Corridor known as EWEC connects
eastern ASEAN countries, Western
Corridor and Southern Economic
Corridor are the key base toestablish Mekong-India Economic
Corridor (MIEC) by extending the
link to Dawei of Myanmar.
ECONOMIC CORRIDORS
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What s new in Myanmar, what s news about Myanmar
New GovernmentThe first democratically elected government New Political Landscape
Measures to achieve positive changes in political,economic and social spheres are put in place, in line withthe market conditions and international circumstances.June 2013 : World Economic Forum
2013 : SEA Games2014 : Asean Chairmanship
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New Economic LandscapeMyanmar is in the process of instituting a series of policy and strategic reforms with the aims of achieving national development and catching up withthe economic success of neighboring countries.
New Development Ideology to reduce poverty and to increase wealth to lift the country out of the least developed
country status to ensure job opportunities and health and social
security benefits for its people
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New National Economic Policy
Sustainable development of agriculture sector
towards industrialization Equitable and proportionate development among
Regions and States Inclusive development of entire people Develop the Quality of statistics and statistical
system
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Goals of the Fifth Five-Year Plan (2011-12 to 2015-16)
To achieve an average annual GDP growth rate of 7.7% To increase industrial share of GDP from 26% to 32%together with an increase in the service sector, reducing thecurrently high share of agriculture. To increase Per capita GDP growth between 30-40% fromthe base year of 2010, which will help attain the first goal of
MDG in reducing the poverty incidence by half over theperiod 2000-2015.
Source: MNPED
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Finance and Banking Unification of exchange rates in April 2012 Adopted a managed floating rates
Foreign currency reserve US$7 billion inSeptember 2011 and expected to US$ 9billion by end of the year 2013.
Central Bank Law (approved July 13, 2013by Parliament)
New Reforms and Laws
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Myanmar s Foreign Investment Law
FIL is revised with more exemptions and relief and approvedby the Parliament in November 2012.
Ministry of National Planning and Economic Development issuedthe Foreign Investment Law Regulations, passed on 31 January2013.
Myanmar Investment Commission announced - List of Prohibited Economic Activities List of Economic Activities allowed in the form of Joint Venture
with Myanmar citizens and List of Economic Activities which shall be allowed under the
specific circumstances
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Aims of the New FIL
to produce products using abundant resources of the country, for the people
to enjoy sufficiently and to enable the surplus to export
to open up more employment opportunities for the people, as business
develop and expand
to develop human resources
to develop infrastructures , both hard and soft to develop respective area of studies in communication networks, transport
business such as rail, ship, aircraft, throughout the entire country, to meet
the international standard
To promote nationwide development and to encourage citizens to work inrelevance with other countries
To promote the building up of the economic enterprises and investment
business in accord with the international norms.
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Special Economic Zone Law : Existing lawenacted in February 2011, being revised to be
one of the most investor friendly laws in theregion. Taxation Law : Revised with effect from 1st April,
2012, reduction of tax rates to induce foreign and
local investment. Intellectual Property Law : 11 th draft in process,
based on minimum standard and maximumflexibility, expected end 2013 or early 2014.
New York Convention : Submitted instrument of accession to the Convention on the Recognitionand Enforcement of Foreign Arbitral Award(1957) in Aoril 2013.
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Changes in Trade and InvestmentEnvironment
Commercial tax and Income tax for export - 10% to 0 % (exceptfor 18 special commodities)
Income tax- 10% to 0% (CMP including garment exports) Reduce Cargo inspection stations at Border Checkpoints Liberalization in documentation process for trade procedure Liberalized in car import- any citizen with foreign exchange
account is allowed to import car Online Licensing system will be introduced soon. Myanmar Investment Commission reorganized. One Stop Service for Investors in Yangon (DICA) started on
April 10
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Top 10 Exports & Imports (2011-2012)
No Items Value ( US Dollar in Million)1 Natural Gas 3463.482
2 Bean and Pulses 1120.938
3 jade 780.340
4 Marine Products 705.866
5 Garment 498.608
6 Rice 324.622
7 Rubber 311.090
8 Teak log 283.923
9
Hardwood Log 272.883
10 Corn 216.789
Total 9097.000
No Items Value (US Dollar in Million)
1 Petroleum Products 2079.765
2 Vehicles & Spare Parts 1178.761
3 Iron & Steel Constructionmaterials
603.768
4 Iron and Steel Materials
512.460
5 Machinery and Spare Parts 511.518
6 Palm Oil 388.291
7 Plastic Raw Materials 314.129
8 Ships, Boats and Spare Parts 311.383
9 Pharmaceuticals 226.06110 Fertilizers 174.590
Total 9053.780
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Export Import Total (mil USD)
China 2166.40 2748.20 4914.60
Thailand 3752.16 789.50 4541.66
Singapore 282.89 2500.02 2782.91
Top 3 Trade Partners of Myanmar (2012-2013)
Source: MOC
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Source: DICA 2013
FOREIGN INVESTMENT OF PERMITTED ENTERPRISES AS OF (30/6/2013)(BY SECTOR)
(US $ in million)
Sr.
Particulars
Permitted EnterprisesNo
No.Approved
%Amount1 Power 6 19237.92 44.82
2 Oil and Gas 115 14372.27 33.483 Mining 67 2829.694 6.59
4 Manufacturing 255 2730.883 6.365 Hotel and Tourism 47 1585.811 3.69
6 Real Estate 19 1056.453 2.46
7 Livestock & Fisheries 26 347.124 0.81
8
Transport &
Communication 16 313.906 0.739 Industrial Estate 3 193.113 0.45
10 Agriculture 10 185.351 0.43
11 Construction 2 37.767 0.09
12 Other Services 11 38.752 0.09Total 577 42929 100
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Source: DICA 2013
FOREIGN INVESTMENT OF PERMITTED ENTERPRISES AS OF (30/6/2013)(BY COUNTRY)
( US $ in million )Sr.
ParticularsPermitted Enterprises
NoNo.
Approved%Amount
1 China 47 14185.529 33.042 Thailand 66 9979.443 23.253 Hong Kong 49 6393.334 14.894 Republic of Korea* 78 3013.705 7.025 U.K* 60 3045.434 7.096 Singapore 90 2358.946 5.497 Malaysia 44 1034.785 2.418 France 2 469 1.099 Viet Nam*** 6 511.186 1.19
10 India 9 283.1 0.6611 Japan 35 270.283 0.6312 The Netherlands 7 249.136 0.5813 U.S.A 15 243.565 0.5714 Indonesia 12 241.497 0.5615 Philippine 2 146.667 0.3416 Russia Federation 2 94 0.2217 Australia 14 99.246 0.2318 Austria 2 72.5 0.1719 Panama 2 55.101 0.1320 United Arab Emirates 1 41 0.121 Canada 16 41.883 0.122 Mauritius 2 30.575 0.0723 Germany 2 17.5 0.0424 Republic of Liberia** 2 14.6 0.0325 Denmark 1 13.37 0.0326 Cyprus 1 5.25 0.0127 Macau 2 4.4 0.0128 Switzerland 1 3.382 0.0129 Bangladesh 2 2.957 0.0130 Israel 1 2.4 0.0131 Brunei Darussalam 3 4.273 0.0132 Sri lanka 1 1 0
Total 577 42929.047 100
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Increase of FDI Since September 2012
Sr.
Particulars
Existing Enterprises(30/9/2012)
Existing Enterprises(30/6/2013)
No. No.ApprovedAmount % No.
ApprovedAmount %
1 Oil and Gas 62 13474.728 43.37 64 13665.028 42.33
2 Power 4 13037.498 41.96 5 13207.921 40.92
3 Mining 8 2289.162 7.37 9 2304.496 7.14
4 Hotel and Tourism 30 814.475 2.62 31 1254.475 3.89
5 Manufacturing 94 633.447 2.04 155 992.505 3.07
6 Real Estate 7 275 0.89 7 275.000 0.85
7 Industrial Estate 2 179.113 0.58 2 179.113 0.55
8 Agriculture 6 154.07 0.50 6 154.0700.48
9 Transport & Communication 7 137.676 0.44 7 137.676 0.43
10 Livestock & Fisheries 7 64.946 0.21 8 87.712 0.27
11 Other Services 5 8.067 0.03 8 21.827 0.07
Total 232 31068.182 100.00 302 32279.823 100.00
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SEZs
ThilawaSEZ
DaweiSEZ
KyaukphyuSEZ
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Source: Ministry of Industry
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Agriculture
agro-based countryPotential food basket for AsiaVast potential of landresources as well asdifferent networks of irrigation facilities for theexpansion of AgricultureSector both horizontally andvertically
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MINERAL SECTOREastern
Highlands
CentralBelt
WesternRanges
Lead,Zinc Copper Silver Tungsten
Antimony Iron
Porphyry Copper
Gold Coal Oil & Gas
Nickel ChromitePGM
Abundance of precious gem stone such as
ruby, sapphire, jade and diamond. Ruby
accounts for 90% of world supply and the
largest jade resource country in the world .
Jade is second largest export item
with the amount of USD 2.2 Billion.
2.8 Billion USD investment by 64
Enterprises.
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Foodstuff, Textile, Personal Goods, Household Goods,
Leather Products
INDUSTRY SECTOR
Transport Equipment, Building Materials, Pulp and Paper, Chemicals,
Pharmaceuticals, Iron and Steel, Machinery and Plant
Developing together with other sector such as agriculture,fishery, mining and oil and gas sectors ; plenty of opportunitiesto invest in manufacturing sector such as labour intensiveindustries, Small and Medium Enterprises (SMEs) and
production Network FDI projects.
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Garment Industries
9/30/2013
High Growth Potential for
Export to Japan, Korea, EU
and USA
Large Domestic Demand for
textile and clothing (about
USD 56 million, 75% of
which has been imported.)0
100
200
300
400
500
600
700
800
900
2001 2003 2005 2007 2008 2009 2010 2011
U S $ i n M i l l i o n
Myanmar Garment Export Trend(2001-11)
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Energy Sector
potentials for cooperation in the downstreamprojects in Energy Sector such as refineryplant and fertilizer plants.
Power
At least 37,000 megawatts can be generated
from hydro all over the country in theAyeyarwaddy, Sittaung, Thanlwin andChindwin river basins and only about 745megawatts has been developed so far.
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OIL & GAS SECTOR
Myanmar possesses significant naturalgas and oil reserves.
10th largest resource of natural gas inthe world, over 90 trillion cubic feet.
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FORESTRY
Expansive forest which covers
half of total area of thecountry, exports 80% of worldteak supplyMajor exporter of teak in
the world
many hardwood andsoftwood species that have beenneglected in the past
processing value-addedproducts commercially for
exports as wellPotentials for Value added
production of Minor ForestProducts: Bamboo, Cane, Rattan
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FISHERIES SECTOR
A long sea coastline of 2,832 kilometers associated
with 229,000 squarekilometers of continentalshelf and 486,000 squarekilometers of exclusiveeconomic zone
Fishery resources that are
currently being used is lessthan 60% of sustainableyield, potential of 1.05million MT of fish and
fishery product
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TOURISM SECTOR
Booming sector after reform16.95% increased in 2009-10, 4.88% increased in2010-11 and 30% increasedin 2011-12Very new white sandbeaches at Myeik
Archipelago comprising 800islandsYear round festivals withsimple and kind heartedpeople
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3. Supportive Industries SMEs & SMIs
PROMISING FUTURE BUSINESS
2. Export oriented agro-basedvalue added industries
Huge potential for agriculturalproduction
huge global demand abundant potential in food
supply
1. Labor intensive manufacturing
garment, footwear, toy, wigs etc
i l b O i i
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Resource
Agriculture
Fishery
Mining
Forestry
Oil & Gas
Food Processing
Mineral Processin g
Wood Processing
Petrochemical
Labor
GarmentElectronic Parts
Assembly
Others
Services
Hotel & Tourism
Logistics
Real Estate
Other
Potential Jobs Opportunities
Footwear Industry
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Market Potential
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CHINA1.35 Billion
LAO7 Million
THAILAND66 Million
INDIA1.21 Billion
BANGLADESH145 Million
60 Million
BAY OF BENGAL
Neighboring Markets TOTAL : 2.839 BILLION
40.6% OF WORLD POPULATION
ANDAMAN SEA
2 Giants EconomiesASEAN Pop 600 mil
EU, USA, Japan,Korea
60 million Population
International Markets
Domestic market
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STRENGTH
Abundant trainable labor force with basic education, hard-working, quick learning, sincere and obedient mindset of thepeople.Well connected to major Asian market, ASEAN, China andIndia.Strategic location : Geopolitical importance for regionalconnectivity as the tri-junction of East Asia, Southeast Asiaand South Asia.Benefit of late comer in development: can leapfrog.
Strong political and economic will of the leaders and strongwill of the people to advance forward under the goodleadership.
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Weakness
Poor infrastructure adds up in high production and transaction cost. Underdeveloped banking and financial system. ( Reforms in banking
system.)
Shortage of skill workers and middle level technicians. ( Skill Development
Law, schemes)
Job-hopping from one workplace to another. (Insecurity, Minimum Wage
Law, Social Security Scheme)
Lack of financial access, incentives, modern efficient machineries,
technology and management. ( Training Center )
Transshipment in Singapore. ( Corridors and Deep Sea Ports )
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THREAT
Regional inequality may cause socialinequality
Competitiveness International pressures amid reforms and
economic sanctions. (?) Genuine change! Reversible-irreviserble!
Capacity !
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OPPORTUNITIES
Regional hub for multimodal transportation and a potentialsupply route bypassing the Malacca Strait. Huge Domestic Demand for textile and clothing (about USD56 million, 75% of which has been imported.)GMS Cross Border Transport Agreement (CBTA) basedTransit Transport. Cutting off substantially transaction cost,both time and money.Sole land-bridge between two giant economies, China andIndia Bharat.High potential to be a
food basket
and
energy source
forAsia (Connectivity Hub ). Huge industrial potential for FDIfrom ASEAN and global supply chains.Lifting of economic sanctions and re-instatement of GSP/EBA by EU, by US?
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Conclusion On the right track politically, economically and socially.
On the runway to take off which ensures the benefit forinvestors.
Amid abundant opportunities.
From blossoms to blooms.
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