Business Opportunities for Finnish Companies & International Financing in Myanmar

KAI TUORILA8.5.2014

11/04/2023 2© Finpro

Industries with Most Opportunities

Energy insufficient energy supply, private investments allowed

Environment Waste management, waste to energy, industrial waste water, biomass

Forestry from exporting logs to process for my value added products

Mining Untapped resources - Gold, copper, lead, zinc, nickel and etc.

Telecom mobile networks, optical lines

Real Estate & Tourism Hotels, office space, service apartments, 2000km sandy beaches

Transportation infrastructure & Industrial Estates Deep seaports & industrial zones, roads, railways, airports

Capacity Building / Education training of local authorities and private sector

11/04/2023 © Finpro 3

Energy & Environment

Only 25% of the population gets electricity from the Government grit !

IPP for industrial zones and major cities

Coal, gas, hydro 6 new power plant projects

nearby Yangon Biomass & Biogas

Agri waste, waste water Renewable energy

Solar, Wind Waste to energy

11/04/2023 © Finpro 4

Environment

Municipal solid waste management

Yangon, Mandalay, NayPyiTaw

Waste collection a big challenger

80% organic waste Industrial waste water

treatment Mandalay

Water purification Salt removal

Waste to energy

© Finpro 5

Forestry

From log smuggling to value added exports

Teak (approx. 70% of world’s teak wood reserves) and other hardwoods

Development of wood processing industries – need for new machinery and knowhow

EU’s FLAG certification issue – tracebility, documentation

Plantations Regional and global rubber,

pulp&paper industries looking for opportunities

11/04/2023 © Finpro 6

Mining

Plenty of Untapped Resources Gold, gemstones, copper, lead,

zinc, nickel, tin, antimony, chrome, uranium etc..

New Foreign Investment Legislation

Foreign businesses would be allowed to own 100% of mining projects

Exempt from income taxes for the first five years of operation in Myanmar

Foreign investors able to lease land for up to 50 years with possibility to extend 2 times 10 years

Australian and other multinational companies waiting further clarifications

• This mining site, like others along the Irrawaddy River, is a concession given by Burma’s ruling military junta to local warlords or businessmen.

11/04/2023 © Finpro 7

Telecom

Approx. 7% mobilephone penetration in 2012 !

Official Telecom Licenses Telenor (budget 1 billion

Euros, technology from Ericsson and Chinese, license to build and operate 15 years)

Ooredoo (budget 15 billion USD, technology from Nokia and Chinese).

Myanmar Post & Telecom (MPT)

Yatanaporn Teleport Army

Internet Users the country had 400,000 Internet

users (0.8% of the population)

11/04/2023 © Finpro 8

Real Estate

Real Estate Booming Hotels (47 new hotel

investment projects approved for Yangon, Condominiums and Service Apartments, Offices etc.

Ownership and Land Leases

Land leasing for foreigners up to 70 years

Law allows foreign investment for buildings taller than six stories and must be serviced by elevators

11/04/2023 © Finpro 9

Tourism

Tourist Master Plan 2013-2020

Reached 1 million foreign visitors in 2012

Targeting 3.01 million arrivals for 2015 and 7.5 million arrivals by 2020

Tourist Destinations Yangon, Mandalay Pagan, Mon state, Shan

state.. 2000 kilometers of seaside

and thousands of Islands

11/04/2023 © Finpro 10

Transportation Infra & Industrial Estates

New Deep Seaport Developments

Dawei, Thilawa, Sittwe, Phatein

Airports New international airport for

Yangon Upgrade of regional airports

Railways Roads Rivers

Huge need for dredging!

Industrial Estates Deep seaports Yangon Border areas with Thailand

11/04/2023 © Finpro 11

Used and New Machinery

Presently huge market for 2nd hand machinery

Construction machinery Agricultural machinery Transportation Equipment Forestry and wood

processing Generators

Fast developing market for new machinery

Local businessmen looking for foreign machinery dealerships

Main street and construction site in Yangon, Myanmar

11/04/2023 12© Finpro

International Financing

Asian Development Bank (ADB) $1 billion for 2013-16. New plan

after 2015 election (one priority area rural off-grid renewable energy)

World Bank $2 billion package for agriculture,

energy and health European Union

200 million from 2011-2013 for rural development, health, trade certification

MoU signed to start EU investment bank activities

Finnish Financing EEP Mekong, Finnfund IKI financing for capacity building,

Other ?

*World Bank Group President Jim Yong Kim visits the Myanmar North Dagon Township Hospital.

11/04/2023 13© Finpro

Summary

Large untapped natural resources Need for Electricity investments have 1st priority Large infrastructure investments expected for Telecom, Logistics Development for Health and Education Huge need for international financing to activate infra projects (?) but

ADB, World Bank and bilateral financing from many countries pouring in

Existing market for 2nd hand (and new) generators, transportation-, agricultural-, forestry- and construction machinery

“We might be 2-3 years too early for our business, but if we come back after 2-3 years, we will be already too late..!”

Finpro – Finland Trade Center in Thailand Kai Tuorila

kai.tuorila@finpro.fi

+66 (0) 81 815 2029