Trade & Investment
From The Report: Myanmar 2017
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Although Myanmar remains in trade deficit, its trade balance has been improving in recent months. The trade deficit stood at $1.11bn in the first quarter of 2015 and fell to $945.7m in the same period of 2016, highlighting the impact rising exports are having on trade growth, and painting a brighter picture for long-term trade trends.

This chapter contains interviews with Le Luong Minh, ASEAN Secretary- General; Cecilia Malmström, European Commissioner for Trade; Vivek Pathak, Director for East Asia and the Pacific, International Finance Corporation; U Thura Ko Ko, Managing Director, YGA Capital and Local Representative, Texas Pacific Group; and Peter Beynon, Chairman, British Chamber of Commerce Myanmar.

Articles from this Chapter

Overview

Making progress: A renewed focus is leading to major improvements in trade
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In recent years trade and investment in Myanmar have soared, buoyed by ongoing efforts to liberalise the economy and a successful political transition in November 2015 that saw the National League for Democracy (NLD) become the country’s first civilian-led government elected to power in modern history. Political reforms have brought significant economic benefits, as the US government moved to lift burdensome sanctions that had weighed on investor sentiment and trade growth. With the administration…

Analysis

Free and clear: Removal of most economic sanctions has unleashed significant economic potential
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The business environment is set for dramatic improvements after several burdensome trade restrictions were lifted in 2016. Most notable for foreign investors was the US government’s move to end sanctions on seven state-owned companies and three state-owned banks, with US President Barack Obama promising to further ease sanctions, even as a number of new companies were added to the sanctions list. Domestic trade restrictions are also loosening, with the Ministry of Commerce (MoC) announcing…

Interview

Improving access: Vivek Pathak, Director for East Asia and the Pacific, International Finance Corporation (IFC), on funding energy projects and attracting foreign investment
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Interview:Vivek Pathak What priorities has the IFC identified in financing the expansion of Myanmar’s national grid? VIVEK PATHAK: Only about a third of Myanmar’s population has access to the electricity grid. The existing gas-fired power plants, which supply about 30% of the country’s power generation, are obsolete and inefficient. Expanding access to electricity is crucial to Myanmar’s long-term growth and job creation. To help Myanmar meet growing domestic power demands, IFC plans…

Analysis

Right moves: A new law will reform the nation’s investment framework
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In a move to further liberalise its business environment and improve investor certainty, the government of Myanmar recently promulgated the new Myanmar Investment Law (MIL), which was drafted by the country’s primary investment oversight entity, the Myanmar Investment Commission (MIC). Although regulations outlining the law’s provisions and implementation have not yet been released, the law’s enactment will transform Myanmar’s current investment framework, merging regulations for…

Interview

Market dynamics: U Thura Ko Ko, Managing Director, YGA Capital; and Local Representative, Texas Pacific Group, on the country’s development and the role of small and medium-sized enterprises (SMEs)
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Interview:U Thura Ko Ko Decades of sanctions have held Myanmar back economically. What factors do you expect to enhance the country’s development? U THURA KO KO: You have to make a distinction. Sanctions have held back certain trade and investment activities, and certain businesses – particularly those linked to the military economic entities – but we must be clear that it was not just sanctions but decades of, effectively, bad policy. To figure out what it is we need to do to bridge…

Interview

Positive traction: Peter Beynon, Chairman, British Chamber of Commerce Myanmar, on the country’s current investment climate
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Interview:Peter Beynon As Myanmar continues to carry out reforms, what key areas can the country improve upon to promote investment? PETER BEYNON: Myanmar is currently engaged in a dynamic process of transition to a democratic, market-led economy from one that has spent 50 years isolated from the international business community. This has left the country with the advantage of being a blank canvas for investors. At the same time, it has the disadvantage of infrastructure and a regulatory…