1 / 29

Business Opportunities in Myanmar

Business Opportunities in Myanmar. Office of Commercial at Yangon Department of Export Promotion Ministry of Commerce. Country Profile. * Encarta 2009. Basic Country Data. Land Area: 676,577 sq. km. (Thai : 522,000 sq.km) Population: 57.50 million Export: US$ 6.8 billion *

gabriel-johnson
Download Presentation

Business Opportunities in Myanmar

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Business Opportunities in Myanmar Office of Commercial at Yangon Department of Export Promotion Ministry of Commerce

  2. Country Profile *Encarta 2009

  3. Basic Country Data Land Area: 676,577 sq. km. (Thai : 522,000 sq.km) Population: 57.50 million Export: US$ 6.8 billion* Import: US$ 4.5 billion* Main Exports: Agriculture, livestock and forestry products, Natural gas Main Imports: Machinery, transportation, construction material, industrial raw materials, consumer goods *2008-09

  4. Across-the-Border Trades Land frontier Trading post 1. Thailand2,099 km 3 2. Laos 235 km- 3. China2,227 km4 4. Bangladesh272 km1 5. India 1,453 km2 Sea frontier Trading post Rakhine coast713 km1 Delta coast438 km- Tanintharyi coast1,078 km1

  5. Land Utilization in Myanmar Net Sown Land 12.1 mil. ha. (18%) Waste Land 5.7 mil. ha. (8%) Forest Land 33.3 mil. ha. (49%) Other Land 16.5 mil. ha. (25%) Total 67.6 mil. ha. (100%) Source: Ministry of Agriculture and Irrigation 2008

  6. Land Utilization in Myanmar Net Sown 11.9 mil ha (17%) Net Sown 10.8 mil ha (16%) Other Land 16.5 mil ha (25%) Waste Land 5.7 mil ha (9%) Fallow 10.8 Forest Land 33.4 mil ha (49%) Source: Ministry of Agriculture and Irrigation 2008

  7. Role of Agricultural Sector 34% of GDP(including crops (26%),livestock & fisheries (7%) and forestry (1%)) 61% of Labor Force 44% of Export Earnings (crops (17%), livestock & fisheries (20%) and forestry (7%)) Source: CSO, Ministry of Commerce, Myanmar

  8. Trade Policy Domestic Agricultural Marketing Released all government controls on all crops including quota purchase on rice, sugarcane, cotton and rubber. Farmers can trade their produce freely in domestic markets.

  9. Agricultural Trade Policy (contd.) Export Marketing Exports of rice is being allowed to private companies based in divisions (provinces) where surplus rice are available Other crops (e.g. pulses, oilseeds such as sesame, groundnut etc. and industrial crops such as jute, kenaf, rubber etc. have no restriction to export) New industries for value-added agricultural commodities are also being encouraged to export

  10. Legal Frameworks for Investment Liberalized domestic and export markets in agriculture sector since 1988 Foreign Investment Law (1988) State Economics Enterprises Law (1989) Private Industrial Enterprise Law (1990) Promotion of Cottage Industrial Law (1991) Myanmar Citizens Investment Law (1994) Source: Myanmar Investment Commission

  11. Potential Business Opportunities Developing the land, including irrigation facilities, for increased production in agriculture sector Establishment of agro-based industries Trading produce and value-added products

  12. Developing the Land Central Committee for the Management of Cultivable Land, Fallow Land and Waste Land (CCMCL) Agriculture Plantation crops 5,000 acres Orchard 3,000 acres Seasonal crops 1,000 acres (1 hectare = 2.471 acres) Source: Ministry of Agriculture and Irrigation

  13. Developing the Land (contd.) Central Committee for the Management of Cultivable Land, Fallow Land and Waste Land (CCMCL) Livestock, Poultry Farming and Aqua-culture Aqua-culture 2000 acres Livestock and Poultry Farming Buffalo, Cattle, Horse 5000 acres Sheep , Goat 1000 acres Poultry, Pig 500 acres (1 hectare = 2.471 acres) Source: Ministry of Agriculture and Irrigation

  14. Developing the Land (contd.) Larger land area of up to (50,000 acres) can be allowed for foreigners with the approval of the Cabinet through Myanmar Investment Commission (MIC)

  15. Developing the Land (contd.) Period of Occupancy Initial (30) years which can be expandable upon negotiation depending on the types of crops and nature of investment Source: Myanmar Investment Commission

  16. Recommended Crops for the Regions Source: Ministry of Agriculture and Irrigation (2008)

  17. Types of Foreign Investment in Agriculture Sector 100 percent foreign investment Joint venture with public sector Joint venture with private sector

  18. 100% Foreign Investment To Invest 100% of foreign capital and technology Product sharing with the government Tax incentives prescribed by foreign investment law will be allowed

  19. Joint-Venture with Public Sector To invest minimum 35% foreign capital and technology, the remaining will be contributed by the related state enterprise Product Sharing Ratio to be proposed Tax incentives prescribed by foreign investment law will be allowed

  20. Joint-Venture with Private Sector To invest at least 35% of foreign capital and technology, the remaining will be contributed by the private partner Product Sharing Ratio to be proposed Tax incentives prescribed by foreign investment law will be allowed

  21. Minimum Foreign Capital Industry: US$ 500,000 Service: US$ 300,000 Source: Myanmar Investment Commission

  22. Types of Agri-business allowed for Foreign Investment Agriculture Cultivating, producing, processing and marketing of seasonal agricultural crops Establishing plantations, producing, processing and marketing of their produce Source: Myanmar Investment Commission

  23. Potential Agro-based Industries Sugar Industry Cotton Industry Rubber Industry Jute Industry Oil Palm Industry Edible Oil Industry Processed Foods (Fruits & Vegetables etc.) Bio-fuel Industry Animal Feed Industry Essential Oil Industry Fertilizer Industry Agro-Chemical Industry Seed Industry Small Scale Agri Machinery and others

  24. Bio-fuel Industry • Bio-ethanol • Sugarcane, Cassava, Corn, Sweet Sorghum • Bio-diesel • Jatropha, Rape Seed, Rubber Seed, Oil Palm

  25. Steps to be taken for Agri-business Development in Myanmar Brief project proposal to DAP, MOAI* Feasibility Study to be done with related enterprise of MOAI Submit project proposal to MOAI including product sharing scheme Submit 100% foreign investment proposal including product sharing agreement to MIC *DAP, MOAI: Department of Agricultural Planning, Ministry of Agriculture and Irrigation (trade-dap@myanmar.com.mm)

  26. Trading of Agricultural Products Export Quality Rice Maize Peas and beans Rubber Cashew nut Sugar Jute, Kenaf Coffee Vegetables & Fruits Import Hybrid and Quality Seeds Small Scale Agri Machinery Fertilizers & Pesticides Earth Moving Equipments Water Pumps Food Processing Machines

  27. Myanmar’s Regional Economic Integrations ACMECS China Vietnam GMS Laos Bhutan Cambodia Japan Nepal Bangladesh MYANMAR Thailand India Korea Sri Lanka Brunei Malaysia Philippines Singapore Indonesia BIMSTEC ASEAN+3 BIMSTEC: Bay of Bangal Initiative for Multi-sectoral Technical and Economic Cooperation GMS: Greater Mekong Sub-region ACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy

  28. Conclusion Myanmar will remain agricultural base for a foreseeable future Present resources and markets lead to agribusiness development Myanmar will become a major food supplier in the region in future

  29. Thank you for your kind attention and welcome to questions and comments. www.depthailand.com

More Related