Trade & Investment
From The Report: Myanmar 2015
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Myanmar has seen an extraordinary surge in trade and investment in the few years since emerging from isolation. Out of the $9.5bn in FDI permissions granted from April 2012 to October 2014, $2.9bn went to projects in manufacturing; $2.2bn to those in real estate, hotels and tourism; and $2.5bn to transport and communications. Foreign investment in many sectors, however, still remains banned and the list of restricted sectors is set out in regulations that can be revised by the government without parliamentary approval. In this light, the government under President U Thein Sein has been gradually liberalising Myanmar’s trade regime. Largely due to a reform passed in April 2013 that eliminated export and import licensing requirements, the country’s ranking for international trade jumped from 135th to 103rd in the World Bank’s “Doing Business 2015” survey.

This chapter contains interviews with Gregory So, Secretary for Commerce and Economic Development, Hong Kong; U Win Myint, Minister of Commerce; and Serge Pun, Chairman, Serge Pun & Associates Myanmar.

Articles from this Chapter

Overview

Though many restrictions remain, gradual liberalisation continues apace
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As it emerges from a half-century of economic isolation, Myanmar is undergoing an extraordinary surge of foreign investment and international trade. Of all foreign direct investment (FDI) accumulated in the country as of the end of 2013, half had entered in the previous three years, while recorded trade volumes more than doubled from 2009 to 2013. This surge is taking place even as foreign investment continues to be highly restricted, and despite considerable uncertainty surrounding national elections…

Interview

Gregory So, Secretary for Commerce and Economic Development, Hong Kong: Interview
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Interview: Gregory So As the ASEAN Economic Community (AEC) nears its formation, how would you assess Hong Kong’s economic cooperation with ASEAN members? GREGORY SO: As the AEC approaches implementation, it is only natural for Hong Kong to strengthen its economic ties with ASEAN. The AEC is a populous market characterised by increasing consumption power, improving living standards and an expanding middle class. ASEAN is Hong Kong’s second-largest trading partner in goods and fourth-largest…

Interview

U Win Myint, Minister of Commerce: Interview
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Interview: U Win Myint Which sectors hold the most potential for developing Myanmar’s trade relations? U WIN MYINT: Myanmar still possesses many untapped resources due to its long experience of isolation from international markets, as well as economic sanctions. The resumption of the Generalised System of Preferences (GSP) from the EU and Japan, as well as the ASEAN-plus-five free trade agreement, have increased trade volumes from $15bn to nearly $25bn within the three-year tenure of the new…

Analysis

The country’s first special economic zone gears up for production
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Foreign investment in manufacturing, already strong, is set to accelerate further with the long-awaited launch of Myanmar’s first special economic zone (SEZ), located near the port of Thilawa about 25 km south-east of Yangon. A greenfield project comprising 2342 ha of former farmland, the Thilawa SEZ aims to simplify the process of foreign investment by providing a ready package, with land, utilities, access roads and a nearby port all within a short drive of the country’s business capital. Backed…

Analysis

Holes in the cheese: Discrepancies in data on trade volumes have many causes
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Two things are clear about Myanmar’s international trade: it is growing, and fast. By just how much is less certain – sources vary widely in their estimates, and even the best data available have obvious holes. Myanmar’s trade figures, published by the Central Statistical Organisation (CSO), show merchandise imports rocketing upward in recent years, from $4.2bn in FY 2009 to $13.8bn in FY 2013 (running from April 1 of same-numbered calendar years). Other countries likewise report a spike in…

Interview

Serge Pun, Chairman, Serge Pun & Associates Myanmar: Interview
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Interview: Serge Pun What barriers do new entrants in the financial services sector face in Myanmar? How important is the development of the sector in drawing in foreign direct investment? SERGE PUN: The promulgation of the revised financial institution law – particularly the advent of foreign banks in Myanmar and how they will interact with local banks – remains a major focal point at this moment. I think the entry of foreign financial institutions into our market will be a positive factor…