Current Situation & Outlook of Myanmar Economy‚»ッション1（1） Current... ·...

Current Situation & Outlook of

Myanmar Economy

The Republic of the Union of Myanmar

Federation of Chambers of Commerce and

Industry (UMFCCI)

Myanmar in Numbers

Population 52.6 million (2017)

Unemployment rate 4.0 (2017)

GDP USD 66.5 Billion (2017)

GDP annual variation

in %

6.7% (2017)

Inflation 5.1% (2017)

Minimum Wages 4,800 MMK/day

Electricity Penetration 41% per household

(from national grid)

As of June 2018

Source : https://www.focus-economics.com/countries/myanmar

Political Transition

towards liberal democracy and market economy

and leading to national reconciliation (2010)

general elections (2015)

political, economic and administrative

transformations started

Economic Turnings

Liberalization of the Telecommunications Sector

(Oct 2013)

Myanmar Special Economic Zone Law (Jan 214)

Arbitration Law (Jan 2015)

New Myanmar Investment Law (Oct 2016)

New Myanmar Companies Law (Dec 2017)

Approved Amount of Foreign Investment

(by sector)

Sr. Sector 2017-2018

(USD in million)

1 Agriculture 134.485

2 Livestock and Fishery 27.661

3 Mining 1.310

4 Manufacturing 1,769.177

5 Power 405.774

6 Oil and Gas -

7 Construction -

8 Transport and Communication 901.639

9 Hotel and Tourism 176.767

10 Real Estate 1,261.977

11 Industrial Estate 34.037

12 Other Services 1,005.259

Total 5,718.086

Source : Directorate of Investment and Company Administration

Foreign Investment of Permitted Enterprises

Source : Directorate of Investment and Company Administration

Foreign Trade by Fiscal Year

Source : Ministry of Commerce

Major Exports by Sector (2017-2018)

Source : Ministry of Commerce

Major Imports by Sector (2017-2018)

Source : Ministry of Commerce

Export and Import Items

Sr. Export

1 Agriculture Produce

2 Wood Products

3 Natural Gas

4 Minerals

5 Marine Products

6 Clothing

7 Jade and Gems

Sr. Import

1 Crude Oil

2 Petroleum Products

3 Machinery and Equipment

4 Transport Equipment

5 Construction Materials

6 Fertilizer

7 Cement

8 Edible Oil

9 Food Products

10 Fabric

11 Plastic Resin

Export and Import Partners

Export Partner

China

Thailand

Japan

Singapore

India

Germany

United Kingdom

Import Partner

China

Singapore

Thailand

Japan

Indonesia

Malaysia

India

5 Potential Sectors in Myanmar

1. Agricultural

2. Fishery

3. Manufacturing

4. Establishment of Industrial Zones

5. Tourism

1. Agricultural

Main industry in Myanmar

Rich in land resources

Mainly grows rice, pulses and beans, maize, sesame,

fruits and vegetables

Welcomes investments in producing value-added

agricultural products and processed foods

Vast potential for investors in agricultural sector

2. Fishery

Rich in vast fishery resources in its coastal waters, rivers and

inland lakes

Export fishery products to China, Hong Kong, Japan, Korea,

the Middle East, Europe and the United States

Achieve export earning from marine products

Important role for the social and economic development of the

country

3. Manufacturing

Expected to become one the country’s most

significant economic growth drivers

18 Industrial Zones with 9589 small and medium

sized enterprises (SMEs)

Developing together with other sectors such as

agriculture, fishery, forestry, mining, energy and

hotel & tourism.

Plenty of opportunities to invest in manufacturing

sector such as labor intensive industries, small

and medium sized enterprises (SMEs)

4. Establishment of Industrial Zones

Three main Special Economic Zones

1. Thilawa SEZ

2. Dawei SEZ

3. Kyaukphyu SEZ

And many more Industrial Zones.

Thilawa SEZ

Major port city in Myanmar

Access to Yangon International Airport and Business Center

Manufacturing

Technology

Forest products

Agriculture

Opening Ceremony of Thilawa SEZ Zone A

Dawei SEZ

Land and sea routes to Thailand, Cambodia and Vietnam

Leather products

Furniture

Steel production

Fertilizer

Oil refinery

Vehicle manufacturing

Kyaukphyu SEZ

Sea route to India and China

Land and airport transportation implemented between China

and Myanmar

Exportation

Oil and gas

Logistics

Services industry

Tax Benefit for Investors

Subject Investment in SEZ

Free Zone Promotion Zone

Corporate Tax Tax Exemption 7 years 5 years

50% Tax Relief 5 years 5 years

50% Tax Relief for

Reinvestment

5 years 5 years

Import Tax

Exemption

Import of Construction

Materials, Machineries

and Equipment

Exempted 5 years exempted +

5 years

(50% Tax Relief)

Import of Raw Materials Exempted Export portion is

refundable

5. Tourism Sector

Thank you very much !