Trade & Investment
From The Report: Myanmar 2020
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Since initiating the process of liberalising its economy and encouraging greater foreign participation, Myanmar’s international investment inflows and trade have expanded significantly. This has gone hand in hand with strong domestic economic growth, even at a time of global trade slowdowns and protectionist headwinds. Capitalising on its strategic location as a crossroads between China, India and South-east Asia, as well as leveraging its abundant natural resources and youthful population, Myanmar has indeed made remarkable progress in just a few short years. Yet the horizon is not without storm clouds, both in the form of economic responses to the country’s internal conflicts from the international community and continuing challenges to the ease of doing business. Nevertheless, investment from Asia’s economic powers remains strong, even if Western commitments are limited. This chapter contains interviews with U Thaung Tun, Chairman, Myanmar Investment Commission; and Minister of Investment and Foreign Economic Relations; and U Than Myint, Minister of Commerce.

Articles from this Chapter

Overview

Navigating headwinds: The authorities are working to overcome internal and external challenges with incentives and new trading relationships
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Since initiating the process of liberalising its economy and encouraging greater foreign participation, Myanmar’s international investment inflows and trade have expanded significantly. This has gone hand in hand with strong domestic economic growth, even at a time of global trade slowdowns and protectionist headwinds. Capitalising on its strategic location as a crossroads between China, India and South-east Asia, as well as leveraging its abundant natural resources and youthful population,…

Interview

Strong message: U Thaung Tun, Chairman, Myanmar Investment Commission; and Minister of Investment and Foreign Economic Relations, on enhancing economic competitiveness
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Interview: U Thaung Tun How are regulatory improvements encouraging foreign direct investment (FDI)? U THAUNG TUN: In accordance with liberal economic principles, the liberalisation of the retail, wholesale, education, insurance and banking sectors shows that we are working hard to open up to foreign investment. This change is rapid, but we want to ensure that the investment environment is favourable, friendly and predictable. The Myanmar Sustainable Development Plan 2018-30 is the country’s…

Analysis

Forward planning: National blueprint outlines sustainable development projects through public-private partnerships
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Among its provisions, the Myanmar Sustainable Development Plan (MSDP) 2018-30 – the country’s long-term development strategy – highlights the need for major reforms in the way the nation trades. Noting that years of isolation from the international community has led to a deterioration in the country’s trading capacity, the MSDP outlines a plan to boost exports and facilitate investment flows. The MSDP states that, “Myanmar will review its institutional and legal framework governing…

Interview

A jump start: U Than Myint, Minister of Commerce, on navigating geopolitical headwinds to create opportunities for expansion
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Interview:U Than Myint To what extent has the trade dispute between the US and China impacted the attractiveness of Myanmar as an investment destination? U THAN MYINT: The trade dispute has created a more favourable investment environment for Myanmar as China looks to alternative markets for its products. To fully take advantage of this, the government and private sector should increase outreach to their Chinese counterparts and highlight how our country has made strides in creating a welcoming…

Analysis

In the market: Capital markets are anticipated to expand as reforms open them up to foreign and local investors
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Now occupying the impressive downtown premises of the former central bank, the Yangon Stock Exchange (YSX) celebrated its third year of business in March 2019. However, as one of the region’s youngest stock exchanges, the YSX is still in the process of catching up to its regional peers. The YSX is seeking to establish a wider international profile, as foreign investment and international traders will be essential to the stock exchange’s expansion. In July 2019 regulators announced further…

Overview

Myanmar CEO Survey:
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The country’s ongoing transition from authoritarianism to democracy will reach its next milestone in 2020, when general elections will be held in union, state and regional legislatures. The polls will take place almost 10 years after Myanmar began the gradual process of opening its economy to the world and granting democratic freedoms to a population that had lived under military rule for some five decades. In OBG’s latest Myanmar CEO Survey, participants of local and international firms are generally positive about the short-term prospects for expansion, with 69% of survey respondents expressing a favourable opinion of business conditions…

Overview

CEOs have their say on the: economy as elections draw near
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Citizens received their last taste of participatory democracy in 2015 with general elections that resulted in a civilian government, although the military maintained control of several key state institutions and still has a strong presence in the national parliament under the constitution. Hopes were high then that the government, led by the National League for Democracy (NLD) and its revered figurehead, Daw Aung San Suu Kyi, could usher in a new era of prosperity, taking advantage of the country’s wealth of natural resources and favourable demographics, as well as the goodwill of international partners keen to do business with South-east…

Overview

Shifting trade winds: Regional integration among emerging economies and a raft of new multilateral agreements bolster international trade
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Global trade faces protectionist headwinds that are dampening the outlook for growth in the coming years. According to the World Trade Organisation (WTO), trade volumes grew by close to 3% in 2018 and are expected to decline slightly to 2.6% in 2019 before rebounding to 3% in 2020. This may be the first time since the 2007-08 global financial crisis that growth will fall below a 3% average, as significant uncertainty driven by an escalating US-China tariff war, acrimonious Brexit negotiations, and wariness surrounding US involvement in several multilateral trade agreements affect business confidence and investment decisions. Nevertheless,…

Overview

Shifting trade winds: Regional integration among emerging economies and a raft of new multilateral agreements bolster international trade
OBG
plus

Global trade faces protectionist headwinds that are dampening the outlook for growth in the coming years. According to the World Trade Organisation (WTO), trade volumes grew by close to 3% in 2018 and are expected to decline slightly to 2.6% in 2019 before rebounding to 3% in 2020. This may be the first time since the 2007-08 global financial crisis that growth will fall below a 3% average, as significant uncertainty driven by an escalating US-China tariff war, acrimonious Brexit negotiations, and wariness surrounding US involvement in several multilateral trade agreements affect business confidence and investment decisions. Nevertheless,…