Present by:Present by:Present by:Present by: Ms. SANDA THEINMs. SANDA THEIN

Ms.Ms. MU MU MYINT MU MU MYINT

Ms. HNIN HNIN AUNGMs. HNIN HNIN AUNG

THE UNION OF MYANMARTHE UNION OF MYANMARTHE UNION OF MYANMARTHE UNION OF MYANMAR

Mekong Institute, Mekong Institute, ThailandThailand

Mekong Institute, Mekong Institute, ThailandThailand

Contents

(1) Introduction

(2) General Information of Myanmar

(3) Aims of Industrial Development and Policy

(4) SME Development in Myanmar

(5) Industrial Zone and Business Clusters

(6) Conclusion

- It has been widely recognized that Small and Medium Enterprises

(SMEs) play ;

- an overwhelmingly important and significant roles in the

country’s economic, social and political development.

- contributing toward employment creation, resource utilization,

income generation, equal distribution of income and

promotion of investment in both the industrialized and

developing countries.

- contributing to greater economic growth of the ASEAN

Countries.

- comparative advantage in their flexibility and dynamism

in response to the changing economic and social environment.

I. Introduction

II. General Information on Myanmar Largest Country in South East Asia Region

Total land area: 261228 sq miles, (677,000 sq

km)

- 582 miles (936 Km ) from east to west.

- 1275 miles (2051 Km) from north to south.

- Length of coastline from the mouth of

Naaf River to Kawthaug - 1385 miles (2234

Km)

Population: 56.515 million (2007)

Climate: Tropical monsoon climate

Religion : Freedom of Religion

Buddhism, Islam, Christian ,Hindus

Official Language: Myanmar

- In Myanmar, population and Land ratio is favorable and

it is rich in natural resources as well as human recourses.

- Myanmar economy is based on agriculture and is striving

for all round development of the nation.

- For economic development Myanmar invited both foreign

and Local Entrepreneurs for investment.

- Current economic conditions favor the foreign investments

and accelerate the development of private sector as well.

- Manufacturing, forestry, mining, energy, livestock breeding and

fisheries and tourism industry have also identities as vital

role to the progress of the country’s economy.

- The agricultural development undertakings alone are not enough

to fulfill all the public needs.

- The industrial development is important in building a new modern

and developed nation.

- The small and Medium Enterprises had been predominant

in Myanmar for centuries.

After the adoption of market economy in 1988,

- The private sector revitalized and appreciable progress had been

achieved in all economic activities, mining, construction, transportation

and services, such as wholesale and retail trade, import and export

trade, banking, hotels and tourism, etc. Approximately 99% of all

business enterprise are SMEs .

- Criteria for definition of SMEs vary according to the country.

- No distinction in size is made for enterprises under the trade and

service sector or Cottage and handicrafts industries.

III . Aims and Policy of Industrial Development

As Myanmar is a developing nation , agriculture play a vital

role in fulfilling the food , clothing and shelter needs of the

people .The state set up new industries at the possible

places with the following aim  of ;

- manufacturing agro-based products

-  producing import-substitute goods,

- utilizing domestic raw-material

- disseminating techniques

- generating job opportunities for local people and

- narrowing the gap in the standard of living.

Aims

Policy

Development of Industries with agriculture as the base.

Enhancement of quantity and quality of industrial products.

Increased production of new type of machinery and equipment.

Production of machinery and equipment for industrial use. Creation of suitable conditions for changing over to a industrial state.

In late 1988, - The new economic policy based on market oriented system.-- The country’s economy welcomes the private sectors as well as foreign direct investment with less state intervention.

Sectors of Infrastructure

Procession and manufacturing 63.4 %

sector

Service sector 22.4 %

Trade sector 14.2 %

Total 100.0 %

Processing & Manufacturing Sector

Agriculture 37.95

%

Livestock and Fisheries 7.40 %

Forestry 0.60 %

Mining 0.60 %

Industries 13.00 %

Energy / Electronic 0.40

%

Construction 3.5 %

The Industry Sector of Myanmar

Industrial zones 18

Industrial Works 8463

Private industries 42707

Cottage industries 8500

State- owned industries 833

Upgrading industrial power

IV. SME Development in Myanmar

Category Small Medium

Large

(a) Power used(H.P) up to 25 up to 50 over

50

(b) No of workers up to 50 up to 100

over 10 (c) Capital Outlay(ky mi) up to 1 up to 5 over

5

(d) Production value up to 2.5 up to 10 over 10

(ky mi)/yr

Criteria for definition of SMEs vary according to the country. Classification of Small, Medium and Large Industries in Myanmar are as following;

Growth of Registered Private Industries

Scale 2003-04 2004-05 2005-06 2006-07 2007 -08

Large abs: 3135 3213 3438 3463 3570

share % 7.3 7.4 7.9 8.0 8.16

Medium abs: 6215 6359 6430 6483 6693

Share % 14.5 14.6 14.8 14.9 15.30

Small abs: 33454 33863 33456 33455 33500

Share % 78.2 78.00 77.3 77.1 76.54

Total abs: 42804 43435 43324 43401 43763

Share % 100 100 100 100 100

Type of SMEs at (31-5-09)

Sr. Commodity Group No: of Industrial EnterprisesNo. Small Medium large Total Share1. Food & Beverages 22984 3920 1846 28750 65.662. Clothing apparel & Wearing 1178 354 273 1805 4.123. Construction materials 2151 503 452 3106 7.094. Personal goods 450 296 264 1010 2.305. Household goods 126 68 114 308 0.706. Printing and publishing 189 73 20 282 0.647. Industrial raw materials 519 273 98 890 2.038. Minerals & Petroleum Products 1182 311 170 1663 3.809. Agricultural equipment 45 27 13 85 0.2010.Machinery equipment 171 83 13 267 0.6111.Transport Vehicles 80 11 142 233 0.5312.Electrical goods 22 10 30 62 0.1413. Miscellaneous 4346 811 168 532512.16

Total 33443 6741 3604 43788Percentage % 76.38 15.39 8.23 100

The Private Industrial Sector

Large 3604 ( 9 %)

Medium 6741 (15 %)

Small 33443 (76 %)

Large

Medium

Small

Foodstuff Industries

Government 154

City Development Council 6

Private 5667

Total 35827

0

50000

1 2 3

Foodstuff Industries

Private

City DevelopmentCouncil

Government

Processed Food Industries

Concerning Ministry

Concerning Organization Union of Myanmar Federation of Chamber

of Commerce and Industry

Myanma Food Processors’ Association

Ministry of Industry (I)

Ministry of Agriculture and Irrigation

Ministry of Livestock Breeding and Fisheries

Ministry of Co-operative

Ministry of Commerce

Industrial Cooperation

Association of South East Asia Nations

(ASEAN)

AFTA

WGIC

AICO

Bay of Bengal Initiative for Multi Sectoral

Technical and Economic Co-operation

(BIMSTEC)

The Ministry of Industry (I)

playing a key role in fulfilling the food,

cloth and shelter needs of the people

is responsible for - directing

promoting industrial investment

production of consumer goods and other

light industrial products

acts as a focal point for the industrial

activities of the public sector

The Ministry of Industry (I)

The Directorate of Industry (DI)

The Directorate of Industrial Supervision

and Inspection (DISI)

Two Directorates:

The Ministry of Industry (I)

Myanma Textile Industries (MTI)

Myanma Foodstuff Industries (MFI)

Myanma Pharmaceutical Industries (MPI)

Myanma Ceramic Industries (MCI)

Myanma General and Maintenance Industries

(MGMI)

Myanma Paper and Chemical Industries

(MPCI)

Six Industries:

Factories under the Ministry of Industry (I)

Myanma Textile Industries (MTI) 26

Myanma Foodstuff Industries (MFI) 22

Myanma Pharmaceutical Industries 15

(MPI)

Myanma Ceramic Industries (MCI) 15

Myanma General and Maintenance 11

Industries (MGMI)

Myanma Paper and Chemical 18

Industries (MPCI)

TOTAL 107

Myanma Foodstuff Industries

Distilleries 5

Wheat Product Factories 2

Starch Factory 1

Virginia Tobacco Factories 3

Soft Drinks and Ice Factories 6

Candy Factories 2

Sugar Mills 2

Soy Sauce and Vinegar Factory 1

22

The Main Products of MFI

Rectified Spirit

Alcoholic Drinks

Beer

Soft Drinks

Ice

Purified Drinking Water

Wheat Flour

Biscuits

Noodles

Vinegar

Glucose

Maltose

Candy

Chocolate

Starch

Corn Oil

Soy Milk

Soy Sauce

Contact US

• Ministry of Industry (1)

Building No (37) . Nay Pyi Taw,

Myanmar

Phone No- 095-067-408140 , 408195

Fax No- 095 -408140

Ministry of Live and Fisheries Fish Inspection and Quality Control Division

Dept. of Fisheries, Sin Min Road,

Ahlone, Township, Yangon, Myanmar

Phone No- 095-1- 222182

National Policy on Fishery Sector

To Promote all- round development in the

fisheries Sector.

To increases fish production for domestic consumption

and share the surplus with neighboring country.

To encourage the expansion of marine and fresh

water .

To upgrade the socio-economic status of fishery

communities.

To Policies and Objectives of the

Ministry of Live stock and Fisheries

To Promote quietly breads of livestock and fish.

To promote all round development in the livestock

and fishery sector.

To increases meet and fish production for domestic

consumption and share the surplus with neighboring countries.

To promote investment in livestock and fishery sector.

To encourage the expansion of me line and freshwater.

aquaculture.

To Promote quality breads of livestock and fish.

To promote all round development in the livestock

and fishery sector.

To increases meet and fish production for domestic

consumption and share the surplus with neighboring countries.

To promote investment in livestock and fishery sector.

To encourage the expansion of me line and freshwater.

aquaculture.

To maintain and conserve freshwater and marine resources.

To extend freshwater fisheries for to let consumption and promote

marine fisheries for export.

To upgrade the second –economic status of livestock and fisheries

communities.

To Policies and Objectives of the

Ministry of Live Stock and Fisheries