Business Opportunities in Business Opportunities in MyanmarMyanmar

Office of Commercial at YangonOffice of Commercial at YangonDepartment of Export Promotion Department of Export Promotion

Ministry of CommerceMinistry of Commerce

Country Profile

NeighborsBorder

(km)Populatio

n (mil)*

Border Trading Posts

Bangladesh 272 154 2

India 1453 1148 2

China 2227 1330 4

Laos 235 7 -

Thailand 2099 65 4

6285 2704 12

*Encarta 2009

Basic Country Data

Land Area: 676,577 sq. km. (Thai : 522,000 sq.km)

Population: 57.50 million Export: US$ 6.8 billion*

Import: US$ 4.5 billion*

Main Exports: Agriculture, livestock and forestry products, Natural gas

Main Imports: Machinery, transportation, construction material, industrial raw materials, consumer goods

*2008-09

Land frontier Trading post

1. Thailand 2,099 km 32. Laos 235 km -3. China 2,227 km 4 4. Bangladesh 272 km 15. India 1,453 km 2

Sea frontier Trading post

Rakhine coast 713 km 1Delta coast 438 km -Tanintharyi coast 1,078 km 1

Across-the-Border Trades

Land Utilization in Myanmar

Net Sown Land 12.1 mil. ha. (18%) Waste Land 5.7 mil. ha. (8%) Forest Land 33.3 mil. ha. (49%) Other Land 16.5 mil. ha. (25%) Total 67.6 mil. ha. (100%)

Source: Ministry of Agriculture and Irrigation 2008

Land Utilization in Myanmar

Net Sown 10.8 mil ha (16%)

Fallow10.8

Net Sown Land

Waste Land

Forest Land

Other Land

Net Sown 11.9 mil ha (17%)

Waste Land5.7 mil ha(9%)

Forest Land 33.4 mil ha (49%)

Other Land 16.5 mil ha (25%)

Source: Ministry of Agriculture and Irrigation 2008

Role of Agricultural Sector

34% of GDP (including crops (26%), livestock & fisheries (7%) and forestry (1%))

61% of Labor Force44% of Export Earnings (crops (17%),

livestock & fisheries (20%) and forestry (7%))

Source: CSO, Ministry of Commerce, Myanmar

Trade Policy

Domestic Agricultural Marketing

Released all government controls on all crops including quota purchase on rice, sugarcane, cotton and rubber.

Farmers can trade their produce freely in domestic markets.

Agricultural Trade Policy (contd.)

Export Marketing

Exports of rice is being allowed to private companies based in divisions (provinces) where surplus rice are available

Other crops (e.g. pulses, oilseeds such as sesame, groundnut etc. and industrial crops such as jute, kenaf, rubber etc. have no restriction to export)

New industries for value-added agricultural commodities are also being encouraged to export

Legal Frameworks for Investment

Liberalized domestic and export markets in agriculture sector since 1988

Foreign Investment Law (1988) State Economics Enterprises Law (1989) Private Industrial Enterprise Law (1990) Promotion of Cottage Industrial Law

(1991) Myanmar Citizens Investment Law (1994)

Source: Myanmar Investment Commission

Potential Business Opportunities

Developing the land, including irrigation facilities, for increased production in agriculture sector

Establishment of agro-based industriesTrading produce and value-added

products

Developing the Land

Central Committee for the Management of Cultivable Land, Fallow Land and Waste Land (CCMCL) Agriculture

Plantation crops 5,000 acres Orchard 3,000 acres Seasonal crops 1,000 acres

(1 hectare = 2.471 acres)

Source: Ministry of Agriculture and Irrigation

Developing the Land (contd.)

Central Committee for the Management of Cultivable Land, Fallow Land and Waste Land (CCMCL) Livestock, Poultry Farming and Aqua-culture

Aqua-culture 2000 acres Livestock and Poultry Farming

Buffalo, Cattle, Horse 5000 acres Sheep , Goat 1000 acres Poultry, Pig 500 acres

(1 hectare = 2.471 acres)Source: Ministry of Agriculture and Irrigation

Developing the Land (contd.)

Larger land area of up to (50,000 acres) can be allowed for foreigners with the approval of the Cabinet through Myanmar Investment Commission (MIC)

Developing the Land (contd.)

Period of Occupancy Initial (30) years which can be expandable

upon negotiation depending on the types of crops and nature of investment

Source: Myanmar Investment Commission

Recommended Crops for the Regions

Sr. States/DivisionsHectare

(000) Major Types of Activity

1 Kachin 1,953 Orchards, Seasonal, Plantation Crops, Fruits

2 Kayah 38 Seasonal, Plantation Crops

3 Kayin 133 Orchards, Plantation Crops

4 Chin 1,256 Orchards, Sericulture, Tea, Fruits

5 Sagaing 200 Orchards, Seasonal Crops

6 Tanintharyi 317 Orchards, Rubber, Oil Palm, Other Plantation

7 Bago 145 Orchards, Rubber, Seasonal, Plantation Crops

8 Magwe 98 Orchards, Seasonal Crops

9 Mandalay 170 Orchards, Seasonal Crops, Fruits

10 Mon 67 Rubber, Oil Palm, Orchards, Plantation, Fruits

11 Rakhine 122 Orchard, Rubber, Plantation Crops

12 Yangon 28 Rubber, Orchard, Seasonal Crops

13 Shan 2,461 Orchard, Tea, Coffee, Seasonal, Plantation Crop

14 Ayeyarwady 104 Orchard, Paddy, Seasonal Crops

Total 5,701Source: Ministry of Agriculture and Irrigation (2008)

Types of Foreign Investment in Agriculture Sector

100 percent foreign investment Joint venture with public sector Joint venture with private sector

100% Foreign Investment

To Invest 100% of foreign capital and technology

Product sharing with the government Tax incentives prescribed by foreign

investment law will be allowed

Joint-Venture with Public Sector

To invest minimum 35% foreign capital and technology, the remaining will be contributed by the related state enterprise

Product Sharing Ratio to be proposed Tax incentives prescribed by foreign

investment law will be allowed

Joint-Venture with Private Sector

To invest at least 35% of foreign capital and technology, the remaining will be contributed by the private partner

Product Sharing Ratio to be proposed Tax incentives prescribed by foreign

investment law will be allowed

Minimum Foreign Capital

Industry: US$ 500,000Service: US$ 300,000

Source: Myanmar Investment Commission

Types of Agri-business allowed for Foreign Investment

Agriculture

Cultivating, producing, processing and marketing of seasonal agricultural crops

Establishing plantations, producing, processing and marketing of their produce

Source: Myanmar Investment Commission

Potential Agro-based Industries

Sugar Industry Cotton Industry Rubber Industry Jute Industry Oil Palm Industry Edible Oil Industry Processed Foods (Fruits &

Vegetables etc.)

Bio-fuel Industry Animal Feed Industry Essential Oil Industry Fertilizer Industry Agro-Chemical Industry Seed Industry Small Scale Agri Machinery

and others

Bio-fuel Industry

Bio-ethanol Sugarcane, Cassava, Corn, Sweet Sorghum

Bio-diesel Jatropha, Rape Seed, Rubber Seed, Oil Palm

Steps to be taken for Agri-business Development in Myanmar

Brief project proposal to DAP, MOAI* Feasibility Study to be done with related

enterprise of MOAI Submit project proposal to MOAI including

product sharing scheme Submit 100% foreign investment proposal

including product sharing agreement to MIC

*DAP, MOAI: Department of Agricultural Planning, Ministry of Agriculture and Irrigation (trade-dap@myanmar.com.mm)

Trading of Agricultural Products

Export Quality Rice Maize Peas and beans Rubber Cashew nut Sugar Jute, Kenaf Coffee Vegetables & Fruits

Import Hybrid and Quality

Seeds Small Scale Agri

Machinery Fertilizers & Pesticides Earth Moving

Equipments Water Pumps Food Processing

Machines

Myanmar’s Regional Economic Integrations

MYANMAR

Thailand

Laos

Cambodia

Vietnam

MalaysiaSingapore

Indonesia

Brunei

Philippines

BangladeshIndia

Sri Lanka

BhutanNepal

China

Korea

Japan

ACMECS

ASEAN+3

GMS

BIMSTEC

BIMSTEC: Bay of Bangal Initiative for Multi-sectoral Technical and Economic CooperationGMS: Greater Mekong Sub-regionACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy

Conclusion

Myanmar will remain agricultural base for a foreseeable future

Present resources and markets lead to agribusiness development

Myanmar will become a major food supplier in the region in future

Thank you for your kind attention and welcome to questions and comments.

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