Industry & Retail
From The Report: Myanmar 2018
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Myanmar’s recent economic growth, low wages and favourable tax exemptions have spurred the arrival of international manufacturers. To support this trend, the government has enacted a range of policies to promote the development of special economic zones (SEZs) and industrial clusters. Manufacturing capacity is on the rise as a result, helping to diversify the economy away from its traditional reliance on agriculture. Maturing consumption patterns have likewise captured the attention of some of the world’s leading consumer brands, which now occupy retail shelves across the country. Real annual sales growth reached 4.3% between 2013 and 2015, higher than that of Cambodia, Laos, Thailand and Vietnam. This chapter contains interviews with U Khin Maung Cho, Minister of Industry; Takeshi Minakata, Managing Director, Myanmar Brewery; and Daw Marlar Win, Chairperson, UMG Myanmar.

Articles from this Chapter

Overview

A rising star: Moves undertaken to develop a modern manufacturing base and enhance international competitiveness
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Myanmar’s recent economic growth, low wages and favourable tax exemptions have enticed the arrival of international manufacturers. To support this trend, the government has enacted a range of policies to promote the development of special economic zones (SEZs) and industrial clusters. As a result, manufacturing capacity is on the rise, helping to diversify the agricultural economy. Likewise, maturing consumption patterns have captured the attention of some of the world’s leading consumer brands,…

Interview

Climbing competitor: U Khin Maung Cho, Minister of Industry, on new policies to promote investment and improve efficiency
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Interview:U Khin Maung Cho How is the government addressing the main challenges to industrial development? U KHIN MAUNG CHO: Industrial development still faces many interconnected challenges that curtail the competitiveness and productivity of our manufacturing sector. Those challenges are identified in the government’s industrial plan, which is aligned with the National League for Democracy’s economic policy. Some of the government’s chief concerns are the high cost of land, the inadequate…

Interview

Tastemakers: Takeshi Minakata, Managing Director, Myanmar Brewery, on the expanding beverage industry
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Interview:Takeshi Minakata What are the main challenges for the growth prospects of the beverage industry? TAKESHI MINAKATA: Since the transition towards democratic rule, Myanmar has become a much more competitive market with new players entering the country. In recent years the beer market has registered growth rates of 7%, with canned products becoming an increasingly valuable product category for manufacturers. Notwithstanding the interesting growth prospects, Myanmar still needs more…

Analysis

Strategic ambitions: As capacity continues to grow, the government is providing further incentives to invest
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With a long-term goal of developing advanced industries, local authorities have been working alongside international agencies and foreign governments in an effort to expand the country’s manufacturing capacity through investments in infrastructure and much-needed power stations. Meanwhile, the adoption of legislation to support special economic zones (SEZs) in 2014 paved the way for growth by introducing a number of pro-business reforms – such as corporate income tax relief, import duty relief,…

Interview

Market in transition: Daw Marlar Win, Chairperson, UMG Myanmar, on economic developments and potential future growth
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Interview:Daw Marlar Win How can the government address the trade deficit? DAW MARLAR WIN: Since the beginning of Myanmar’s democratic transition and political overture, the economy has changed a lot. Several trade barriers were removed, which led to a large influx of foreign investment and new consumer products. Given the low stage of development of the local industrial sector, the opening of international markets caused a sharp increase in imports. These factors help explain the country’s…