Industry
From The Report: Myanmar 2014
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Myanmar is seeking to build upon the growing and steady contribution of industry to GDP. This figure rose from 12% to 15.3% between 1970 and 1995 even as international sanctions affected the garment industry, with clothing exports falling by 60% and a loss of 80,000 jobs. However, with reform has come optimism of a turnaround in the making. As of 2012 the country had around 200 garment factories, having peaked at 300 in 1999. In addition, there are five steel plants, as well as hundreds of smaller steel workshops and four cement factories. In many ways, Myanmar has very suitable conditions already in place to develop and sustain an industrial base. In order to maintain its position as an attractive, low-cost market for international investment, Myanmar will need to overcome rising property and electricity prices, not to mention gaps in transport infrastructure. Progress will also depend on how laws are finally settled and whether the domestic financial system can be reformed to the extent that local corporations are able to finance their own facilities.
This chapter contains interviews with U Maung Myint, Minister of Industry; U Khin Maung Win, Chairman, Myan Shwe Pyi Tractors; Dr Sai Sam Htun, Chairman, Loi Hein Company; and Daw Win Win Tint, Managing Director, City Mart Holdings.

Articles from this Chapter

Overview

Turning in motion: Foreign investors set sights on benefitting from reform and low costs
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Myanmar is one of the more promising nations for investment into manufacturing. Wages are some of the lowest in the world, workers are productive and the literacy rate is in the high ninety percentile. In addition, the country is actively targeting manufactured goods after years of isolation, with legal reform and better regulation gathering pace to allow foreign investors easier access to the market and a higher degree of certainty. International investors are already positive on the country. Tetsuo…

Interview

OBG talks to U Maung Myint, Minister of Industry
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Interview:U Maung Myint How can the Small and Medium Industry Development Policy (SMIDP) ensure the development of local small and medium-sized enterprises (SMEs)? U MAUNG MYINT: The government understands the importance of private sector development as the root of national economic growth, hence the creation of the SMIDP. This policy has identified three strategic measures to obtain the principal tasks of human resources (HR) development, technology promotion and innovated spirit incubation,…

Interview

OBG talks to U Khin Maung Win, Chairman, Myan Shwe Pyi Tractors
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Interview:U Khin Maung Win How do you see the newly drafted Foreign Investment Law impacting the industry and retail sector? U KHIN MAUNG WIN: The government and lawmakers should be commended for their efforts to attract foreign direct investment (FDI). We do expect investment laws to go through a few more revisions. All investors prefer to deal with little paperwork and faster processes. The laws are still restrictive as the execution and approval for incentives could involve multiple agencies…

Analysis

In the zone: Mapping the opportunities and challenges of industrial zones
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Myanmar may find that the first steps toward general nationwide economic reform will begin within industrial estates. These zones can create forms of ownership not possible under the law of the land, and can be paired with special incentives and offer better infrastructure than is available elsewhere. The strategy has worked well in Thailand, where industrial estates have been especially popular with Japanese manufacturers. Background Myanmar has had industrial zones for more than two decades,…

Analysis

Dressed for success: Foreign investment is key to expanding garment manufacturing
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Garment manufacturing is likely to be a key driver of Myanmar’s economic growth going forward. Not only was it a major part of the economy before sanctions were enacted, but it has also been one of the fastest to recover. The garment business is set to expand considerably in the near to mid term as foreign investment pours in and pre-sanction capacity is put back in place. By Numbers According to the Myanmar Investment Commission, foreign direct investment (FDI) is set to more than double in…

Interview

OBG talks to Dr Sai Sam Htun, Chairman, Loi Hein Company
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Interview:Dr Sai Sam Htun How much potential for growth do you foresee for fast-moving consumer goods (FMCG)? DR SAI SAM HTUN: The size of Myanmar’s population, coupled with economic growth, is likely to spark an increase in demand for many products, and the number of companies within the FMCG sector should also grow. The beverage market will become more developed in the next three to five years and more brands will be introduced, increasing consumer choice. Of course, consumers’ purchasing…

Interview

OBG talks to Daw Win Win Tint, Managing Director, City Mart Holdings
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Interview:Daw Win Win Tint How has the retail sector adjusted to recent political and economic changes? DAW WIN WIN TINT: We started to notice a change two years ago when, after the elections, it was not clear in what direction the country was headed. At the time, everybody was a little suspicious that the elections were a sham, but when the new government took office and we heard our president’s speech for the first time, there was a belief that the country was ready for change. Foreign…