Trade & Investment
From The Report: Myanmar 2018
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Trade and investment has expanded rapidly in Myanmar since 2011, bolstered by economic liberalisation, legal reforms, a large untapped domestic market and a favourable geographic position bordering Bangladesh, China, India, Laos and Thailand, which together comprise 40% of the world’s population. However, several factors weigh on 2018’s investment outlook, including ambiguous legislation and red tape, depressed global commodity prices and India’s agriculture import quotas. Concerns over the country’s human rights record could also act as a deterrent to Western financiers, even as Chinese firms move in to fill the funding gap in infrastructure, real estate, transportation and industry. Nonetheless, new opportunities created by China’s Belt and Road Initiative are set to play a significant role in supporting Myanmar’s trade and investment growth over the medium term. This chapter contains interviews with U Than Myint, Minister of Commerce; Jin Liqun, President, Asian Infrastructure Investment Bank; and Mai Trang Thanh, President, Honeywell Indochina.

Articles from this Chapter

Overview

Across borders: Raft of investment expected to unlock economic potential
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Trade and investment has expanded rapidly in Myanmar since 2011, bolstered by economic liberalisation, legal reforms, a large untapped domestic market and a favourable geographic position bordering Bangladesh, China, India, Laos and Thailand, which together comprise 40% of the world’s population. However, several factors are weighing on 2018’s investment outlook, including ambiguous legislation and red tape, depressed global commodities prices and India’s agriculture import quotas (see analysis).…

Interview

Transition period: U Than Myint, Minister of Commerce, on establishing a modern economy
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Interview:U Than Myint What impact do you foresee the National Export Strategy (NES) having on the trade deficit? THAN MYINT: The NES will effectively support the main objectives of the nation, namely poverty alleviation, rural development, broad-based income growth and sustainable export-led growth. The Ministry of Commerce (MoC) has been developing the NES in cooperation with the International Trade Centre and various relevant public and private stakeholders, with financial support from…

Interview

Financing the future: Jin Liqun, President, Asian Infrastructure Investment Bank (AIIB), on supporting forward-thinking ASEAN infrastructure
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Interview:Jin Liqun How do you see AIIB supporting infrastructure development in ASEAN in the coming years? JIN LIQUN: ASEAN countries were some of the first to join AIIB, and we greatly appreciate their support. We have already begun investing in ASEAN infrastructure, including projects in Myanmar and Indonesia. As a multilateral development bank we can play a number of different roles in infrastructure project financing, and as a new institution we have a clean, healthy balance sheet, meaning…

Analysis

Mind the gap: Government to address the trade deficit by increasing exports
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As its economic liberalisation agenda progresses, the government has increasingly turned its attention towards addressing the country’s widening trade deficit. Although Myanmar exports have risen sharply over the previous decade, they have not kept pace with import growth. An overdependence on raw resource exports and the lack of a diversified, value-added export base have been identified as primary challenges. The National Export Strategy (NES) 2015-19 highlights priority sectors for investment,…

Overview

Business Barometer: Myanmar CEO Survey
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Two years after State Counsellor Aung San Suu Kyi took up the reins of a civilian-led government in Myanmar, executives surveyed by Oxford Business Group remain broadly positive about the country’s outlook in spite of challenges and risks. Myanmar continues to enjoy inherent advantages that should allow it to remain the fastest-growing economy in ASEAN. The keys to success lie in the creation of a clear and transparent regulatory environment for attracting investment and financing the real economy, while also ensuring it capitalises on its position between China and India without becoming beholden to either. For more information on the OBG Business…

Interview

Connected solutions: Mai Trang Thanh, President, Honeywell Indochina, on opportunities for investment in construction, oil and gas
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Interview:Mai Trang Thanh Which sectors are ripe for foreign investment? MAI TRANG THANH: Economic and political reform has captured the attention of foreign investors. With a young population, one of the largest landmasses in South-east Asia, vast natural resources and a GDP of about $66bn, the country is an exciting and dynamic frontier market with a variety of business opportunities. Honeywell identified especially promising opportunities in oil and gas, city planning, household products…

Analysis

Legal matters: A number of legislative reforms aimed at boosting key sectors
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Approved foreign investment in Myanmar has dropped off since the early years of economic liberalisation. The government now seeks to attract new inflows in an effort to boost exports and employment, reduce the trade deficit and diversify the production base. Companies Law A number of major legal reforms have been rolled out to increase international trade and investment. The most recent of these is the Myanmar Companies Law, which replaces the Companies Act of 1914 and is slated to come into effect…