Myanmar

Land of Opportunities and Challenges

2016
What are the associations?

U.S.A U.K.

Aung San Suu Kyi

China Myanmar 2
Where is Myanmar?
 Myanmar’s Vital Statistics
Population 53.96 mln
-Male - 49.43%
-Female - 50.57%

Area 676,577 sq. km

GDP Usd 46.947 bln (2012-13)

GDP annual growth rate 7.6% (as of March 2013)

Number of household 11.1 mln (2013)

Working population
31 mln (2013)
(age 15 & above)
Youth population
20 mln (2013)
(age 15-24)

Tourist arrivals Over 2 mln (2014)

Local system Common law

SME size 126,237 (99.4%)

Source: The World Bank/Myanmar Government

 5

Myanmar’s Exports & Imports

In US Dollar in Million In US$ Million

No TOP 10 Exports Value No TOP 10 IMPORTS Value

1 Natural Gas 2,522.5 1 Petroleum Products 1,463.0
2 Jade 2,204.9 2 Machinery & Spare Parts 873.7
3 Matpe ( Black Gram Bean ) 458.6 3 Iron & Steel Construction materials 430.4
4 Garment 381.1 4 Plastic Raw Materials 202.1
5 Fish 306.0 5 Palm Oil 198.8
6 Rubber 302.0 6 Vehicles & Spare Parts 197.1
7 Teak Log 292.3 7 Pharmaceuticals 188.3
8 Green Mung Bean 291.3 8 Ships, Boats 180.4
9 Hardwood Log 282.0 9 Cement 167.8
10 Rice 194.4 10 Fertilizers 162.6
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Myanmar’s Foreign Investments
FDI in Myanmar by Sector, as of 31/10/2014
Permitted Enterprises
Sector Particulars Approved Amount
Number %
(in Usd mln)
1 Power 8 19,324.54 38.48
2 Oil and gas 132 15,177.32 30.22
3 Manufacturing 416 4,640.91 9.24
4 Mining 69 2,863.18 5.7
5 Transport & communication 27 2,858.04 5.69
6 Hotel & tourism 57 2,154.59 4.29
7 Real estate 28 2,120.15 4.22
8 Livestock & fisheries 32 441.318 0.88
9 Agriculture 16 240.645 0.48
10 Industrial estate 3 193.113 0.38
11 Other services 22 169.697 0.34
12 Construction 2 37.767 0.08
812 50,221.27 100
Source: HKMCC
 Myanmar’s Priorities
- in regard to itself
• Rural development and poverty reduction
• Agriculture development and industrialization
• Energy sector development
• Telecommunication development
• Micro-finance for rural people and SMEs
• Education and health sector development
• Human resource development
• Infrastructure development
 China’s Priorities
- in regard to Myanmar
• Building the Bangladesh-China-India-Myanmar
land bridge

• Counting Myanmar in building smooth, secure and efficient ocean

routes to connect the major sea ports along the ROAD

• Including Myanmar in strengthening infrastructural connection,

trade, investment, resource exploration, finance, ecology, culture,
maritime development

• Maintaining the Ruili (Yunnan) – Kyaukpyu (Myanmar) oil and gas

pipeline, 2013
8
 MCL’s Priorities
- in regard to Myanmar

9
Opportunities
Myanmar’s Market Development
- relative to other Asean countries
Malaysia

• High value merchanise

Thailand

• Daily necessities Indonesia

Philippines
Vietnam

Laos
• Low value merchandise Cambodia
Myanmar

11
Myanmar’s Minimum Wage Level
- relative to other Asean countries

• Myanmar : Usd100

• Cambodia : Usd140

• Vietnam : Usd156

12
Myanmar’s Import Sourcing
- general merchandise

Yiwu in
Zhejiang

Guangzhou in
Guangdong
Myanmar’s Other Opportunities

14
Other Import Logistics Opportunities

Myanmar Plaza Myanmar Parkson

City Mart Holding 15

Yangon - Thilawa - MTT

MITT

MITT is about 25km

from city area

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Yangon Thilawa － MITT

SEZ - 2,400 hectares

MITT

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 Foreign Investment Law
1

A citizen or 100%
concerned
foreign
Government
2 owned
organisation

Joint
venture 3

Any “system”
Included in
the Mutually
Agreed
Contract 18
 Starting Up Business - MMCL

• Documents requirements
Business Permit
Company Registration

• Capital requirement
Min. USD50,000

19
MMCL Team in Yangon

20
 Myanmar’s Transport and Logistics

Finance
Logistics Supply Chain
Physical
Concepts Management
Distribution
Product
Development

Customer
Development

Supply Chain Integration

www.vietnamsupplychain

1960s 1970s 1980s

 Logistics Plus

• Logistics services

LCL FCL

Land, Air, Ocean Freight

Break Bulk Out of Gauge 22

 Logistics Plus
• CFS / Warehouse

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 Logistics Plus
• Value added services (import to Myanmar)

LCL Consolidation
Supply Sourcing PO Management Cargo Inspection

FCL

Landside Delivery Inspection/Quarantee Customs Clearance

MMCL’s Overseas Network

Italy Japan &

Korea

China &
Hong Kong

ASEAN

Australia &
New Zealand
Challenges
Congested Roads & Terminals

Yangon
Down Town

Yangon
Inner Port

27
Yangon Inner Harbour – Terminals & ICDs
International wharves
HTD (Hteedan)
o Yangon Port – 17 wharves
o Thilawa Port – 6 wharves
AWPT Total – 23 wharves
ICD – 3 Depots
MIP SPW NANTHIDA BSW ICD 1 & 2

Monkey
Point

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 Competition
- general merchandise logistics

Competition
from existing agents in China
Competition
- FMCG logistics

Resources?
30
Myanmar’s Business Transaction
- still cash based

31
Myanmese People and Culture
Government Effectiveness

33
Putting into perspective
 SWOT Analysis - Myanmar
Strengths
1. Strategic geo-political & commercial
location
2. Opening up for business & investment
3. Pragmatic leadership
4. Peaceful foreign policy
5. Large and young population
6. Rich in natural resources
Opportunities
1. On the Maritime Road
2. Last frontier in ASEAN
3. Connectivity with end-markets
4. Strategic interest to China & USA
5. Investment in infrastructure, tourism,
trade & commerce, education &
ecology (the “green” vision)
Weakness
1. Complex bureaucratic regulations & legal
issues
2. Rudimentary financial market
3. Inadequate infrastructures
4. Limited industrial diversification
5. Lack of international exposure
6. Insufficiency of skilled labour
Threat
1. Risks associated with reforms – economic,
social, and political
2. Negative impact on environment resulting
from massive industrialization
3. Inflationary pressure resulting from rapid
economic expansion
4. Conflict with ethnic minorities
5. External political forces impacting internal
political, social and economic stability 35
 On balance…

Put a Marker on this Land of Opportunities

36
 Communication

Shenzhen Shunde

37
Yangon
To follow up…
 Myanmar Star

39
www.mclhkg.com.hk
 40

A New Chapter in Myanmar

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 One Belt One Road

G G
(Government) (Government)

P P
(People) (People)

B B
(Business) 2 (Business)
Questions & Comments

42