Doing Business in Myanmar (Burma). Burmese Economy Foreign Trade

Course summary Doing Business in Myanmar (Burma)

The Union of Myanmar, formerly known as Burma, is geographically situated in Southeast Asia. Myanmar is bordered on the north and northeast by the People's Republic of China, on the east and southeast by the Lao People's Democratic Republic and the Kingdom of Thailand, on the west by the People's Republic of Bangladesh and the Republic of India (states of Arunachal Pradesh, Nagaland, Manipur, and Mizoram). The capital is Yangon (Rangoon).

Burma is a resource-rich country with a strong agricultural base (50% of GDP derived from agriculture, livestock and fisheries, and forestry). It has vast hardwood timber, natural gas, and fishery reserves and is a leading source of gems and jade.

Myanmar has liberalized domestic and Foreign trade, promoting the role of private sector and opening up to FDI. The state remains heavily and inefficiently involved in most parts of the economy, infrastructure has deteriorated. State-controlled activity predominates in energy, heavy industry, and the rice trade. The military's commercial entities play a major role in the economy.

Burma's rice exports hit a near-record high in 2009, but indicators are that 2010 numbers will be much lower as drought, delayed monsoon rains, and a government desire to carefully control domestic rice prices combine to constrict exports.

- Burma' main export products: natural gas 38%, agricultural products 18%, precious and semi-precious stones 11%, timber and forest products 8%, and marine products 5%.
- Major export markets: Thailand 40%, Hong Kong 11%, India 11%, Singapore 13%, China 7.5%, and Malaysia 5%.
- Main imports: lubricant oil and diesel 16.9%, textiles and fabrics 8.6%, machinery parts 8.7%, and steel, iron, and bars 5.8%.
- Major suppliers: Singapore 30%, China 18%, Bahamas 13% Thailand 6%, and Japan 5%.

The Port of Yangon is the premier port of Myanmar and handled about 90 % of the country's exports and imports.

International Economic Relations. Myanmar is member of: Association of Southeast Asian Nations (ASEAN) - ASEAN Economic Community, Mekong Economic Cooperation Strategy (ACMECS), Bay of Bengal Initiative (BIMSTEC), Asian Clearing Union (ACU), Boao Forum For Asia (BFA), Forum for East Asia-Latin America Cooperation (FEALAC), Asia-Europe Economic Meeting (ASEM), Asia - Middle East Dialogue (AMED), Asia Cooperation Dialogue (ACD), Asian Development Bank (ADB), Economic and Social Commission for Asia and the Pacific (ESCAP), Colombo Plan,  International Monetary Fund, World Bank, UNCTAD ...

Myanmar Free Trade Agreements (FTAs): ASEAN Free Trade Area (AFTA).
ASEAN Agreements: Australia New Zealand, Canada, China, India, European Union, Japan, Korea, Russia, US, Pakistan.

Union of Myanmar has signed Free Trade Agreements with the following countries;
1. Israel (1955)
2. India (1956)
3. Sri Lanka (1959)
4. Korea (1967)
5. China (1971)
6. Bangladesh (1973)
7. Pakistan (1976)
8. Vietnam (1976)
9. Malaysia (1988)
10. Thailand (1989)
11. Lao (1995)
12. Philippines (1997)

Myanmar Brewery Limited (MBL) was established on March 29, 1995 as one of the earliest major joint-venture projects in Myanmar with a total invested capital of US$ 50 million. The brewery is located on a 13.6 hectare site in Pyinmabin Industrial Complex, Mingaladon Township, Yangon. MBL is considered as one of the best-run foreign-invested companies in Myanmar.

Waaneiza Worldwide, a group of companies, was incorporated in 2008 as manufacturing, trading & servicing companies. Is the Myanmar's leading provider of quality food and beverages for customers worldwide.

Mobilemate Telecommunications. Established in year 2003 with the purpose of promotion and distribution of Telecommunication Equipments, mobile value added services, mobile commerce and mobile phones. Mobilemate has became Myanmar’s largest mobile phones distributor. To date, Mobilemate accomplished the market share of 90% for TDMA Handsets and 40% for NOKIA GSM Handsets just from its retails, one of the subsidiaries.

Burmese is the most widely spoken language (approx. 32 million native speakers). A majority of Burma's people are ethnic Burman. An estimated 89% of the population practices Theravada Buddhism.