Industry & Retail
From The Report: Myanmar 2019
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Myanmar’s manufacturing sector reached a turning point in 2018 as liberalisation, tax reforms, infrastructure improvements and the development of special economic zones helped turn the country from a low-cost regional production base to a rising manufacturing destination with capacity on the rise. The sector has an advantage due to the country’s relatively low operating costs, favourable demographics and liberalising government policies.

Myanmar’s retail segment has boomed in the years since the economy was liberalised, with foreign goods hitting the market and local sellers making their offer more sophisticated. Legacy retail conglomerates are investing in Western-style upgrades to supermarkets and malls, and foreign investors are entering into joint ventures to bring technical know-how. Foreign loans and investment in the retail sector are also bearing fruit.

This chapter contains interviews with U Win Aung, Chairman, Myanmar Thilawa SEZ Holdings; and Daw Win Win Tint, CEO and Founder, City Mart Holding.

Articles from this Chapter

Overview

Turning point: A number of manufacturing subsectors are positioned for growth thanks to new openness to investment
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Myanmar’s manufacturing sector reached a turning point in 2018 as liberalisation, tax reforms, infrastructure improvements and the development of special economic zones (SEZs) helped turn the country from a low-cost regional production base to a rising manufacturing destination with capacity on the rise. The sector has an advantage due to the country’s relatively low operating costs, favourable demographics and liberalising government policies. Despite its many strengths, players in…

Analysis

Minimum rising: Debate on the minimum wage is one of many challenges manufacturing must overcome to continue its upward trend
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Myanmar instituted sweeping increases to the national minimum wage in 2018, boosting the rate to MMK4800 ($3.40) per eight-hour day, up from the MMK3600 ($2.55) rate set in September 2015. The changes come as Myanmar’s fast-paced growth draws an increasing number of rural workers into the larger cities for employment in the surging garment and light manufacturing sectors. Faced with high inflation — which World Bank figures estimate will reach 8.8% in 2018, up from 5.5% the previous year…

Interview

Return on investment: U Win Aung, Chairman, Myanmar Thilawa SEZ Holdings, on growing special economic zones (SEZs)
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Interview:U Win Aung What benefits have been generated so far by the Thilawa SEZ, and what are the main priorities for its development in the future? U WIN AUNG: The Thilawa SEZ is at a turning point. In recent years, Thilawa has faced a shortage of certain utilities, particularly electricity. However, thanks to Japan’s Official Development Assistance, power supply was secured in the industrial zone at the beginning of 2018, and we can now accommodate heavier industries and larger manufacturers.…

Overview

Buyers’ market: An expanding young population and rising incomes drive demand for non-essential goods
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Myanmar’s retail segment has boomed in the years since the economy was liberalised, with foreign goods hitting the market and local sellers making their offer more sophisticated. Legacy retail conglomerates are investing in Western-style upgrades to supermarkets and malls, and foreign investors are entering into joint ventures to bring technical know-how. Foreign loans and investment in the retail sector are also bearing fruit, with international-standard outlets expanding outside the traditional…

Interview

Convenient consumption: Daw Win Win Tint, CEO and Founder, City Mart Holding, on investment opportunities, the shift towards card payments and expanding the convenience store model
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Daw Win Win Tint: Interview What factors do investors need to consider when doing business in retail in Myanmar? DAW WIN WIN TINT: There are three essential factors that investors need to consider. First, the investor needs to understand and become familiar with the country’s regulations and procedures related to the retail and wholesale sector. Second, it is important for them to identify market dynamics and plan accordingly. For instance, the supply chain is still in the early stages, and even…

Analysis

Open for business: The world’s last untapped retail market stands to benefit substantially from the entry of foreign investors
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Myanmar’s growing retail sector received a boost in 2018 with regulations aimed at encouraging foreign investment in the sector and the economy as a whole, with more foreign brands now entering the market. Foreign investment laws and regulations governing the retail sector were reformed in recent years, paving the way for more foreign players in the local market. In August 2018 the Myanmar Companies Law came into force, which allows foreigners to acquire up to a 35% stake in local companies…