CEO Networking Enhancing Project SME Support, Japan

Mr. Maung Myint

Union Minister

Ministry of Industry

Myanmar Dated. 9th March , 2015

Investment Environment and Market Trend in Myanmar

Outline

International Business Matching Program

1

2

National Economic Policy

Mode of Doing Business

Industrial Zones

Reform Related with Investment

2

3

4

5

6

7

8

9

Strong Potential Growth in Myanmar

Market Economy

Exemption and Reliefs

Myanmar Special Economic Zone

Three distinct geographical regions: the

Eastern Hill Region, the Central valley

Region and the Western Hill Region

Ayeyarwaddy River, Sittaung River,Thanlwin

River and Chindwin River

Coast line is 1,759 miles ( 2832 km)

Second Largest country in Southeast Asia,

Total Land mass of 261,228 square mile

(676,577 sq km)

Rich cultural heritage and scenic beauty

has made it one the world’s hottest

destination

Highlight of Myanmar Key Fact for Business development

As almost half of the country’s total

landmass is forested

51 million population - 2014 census

( preliminary results) with working age of

37.35 million, 70 % of total population

Over 91% of population is literate

Relatively low wage

Much of Myanmar’s intellectual speaks English

Highlight of Myanmar Modest Human Resource

Highlight of Myanmar Rich in Natural Resources

10th largest resources of natural gas in the

world,

over 90 trillion cubic feet

Expansive forest which covers half of total area of the country,

exports 80% of world teak supply

Fertile land for agriculture which amounts 19.3 million

hectares arable land and out of these, over 6 million hectares

have not yet been exploited

Fishery resources currently being used is less than 60% of

sustainable yield, potential of 1.05 million MT of

fish and fishery product

Abundance of precious gem stone such as ruby, sapphire, jade

and diamond. Jade accounts for 90% of world supply and the

largest jade resource country in the world.

Has gold deposit across the country

Copper is the largest export of mining product

Others mining product such as silver, lead, tin, tungsten and

antimony deposit are widespread in the country

Highlight of Myanmar Rich in Natural Resources

National Economic Policy

• Sustaining agriculture development towards industrialization and all round development

• Balanced and proportionate development among States and Regions

• Inclusive growth for entire population

• Quality of statistics and statistical system

Reforms

Vision Second Phase First Phase

Focused on politic

-National

Reconsolidation

- Peace and Stability

- Freedom of Media

Focusing on Economic

Development

- Invite more FDI

- Change of Trade Policy

-Monetary & Finance

Policy

-Conduct National

Workshops in various

economic sectors

To be a modernized,

developed

industrialized nation

More reforms

Presidential Guidelines June

2014 10 June 2014 – Third Wave

Reliable Electricity

Clean Drinking Water

Tourism

Sustainable Agriculture

Jobs and Industries

Trade and Investment

Financial Development

Hu

man

Dev

elo

pm

en

t PAR

& E-G

ove

rnan

ce

S/T: Tangible and early quick wins for the people

L/T: Building a foundation for democratic nation

Targ

ets

Public Administration: Coordination

Civil Service: Competency, Mindset

Decentralization: State & Regional

Bottom-up: Township Development

Private Sector: SME Support

Natural Resources: Governance

Delivery: Affordable - Accessible

Land Use: People-centered

Pro

cess

es

• Poverty Reduction • Rural Development

16 Aug 2013 – Mid-Term Directives

Qu

ick

Win

s

ASEAN Member Countries

Potential of ASEAN Member Countries

ASEAN People - 600 million

Contribution of SME to GDP - 30 – 60 %

Combined GDP - Nearly US$ 3 trillion

No of ASEAN SME - 96 % of all Enterprise

Employment in many AMSs - 50 – 97 % of total

Contribution of SME to Export - 19 -31 %

Investment flow from plus three to ASEAN - 43.3% of other countries

FDI flow from Japan to ASEAN - 19.2% of other countries

ASEAN SME Agencies & ASEAN Websites Country Name of Agencies URL

ASEAN ASEAN Secretariat www.asean.org

Brunei Darussalam Entrepreneurial Development Centre

Ministry of Industry and Primary Resources

http://www.bruneimipr.gov.bn/public/portal/?id

_menu=251

Cambodia Department of Small Industry and Handicraft, General Department

of Industry , Ministry of Industry, Mines and Energy (MIME)

www.gdi.mime.gov.kh

www.mime.gov.kh

Indonesia Ministry of Cooperative & SMEs http://www.depkop.go.id

SME’sCo -

Indonesian Trading Board

http://www.indonesian-products.biz/

Website of Cooperative and SMEs http://www.smecda.com

Laos PDR SME Promotion and Development Office

Ministry of Industry and Commerce

http://www.smepdo.org/info/1/?lang=en&PHP

SESSID=73a58aded602ef749ca00c9087602

957

Malaysia SME Corp Malaysia www.smecorp.gov.my

SME Info – One Stop SME Resources www.smeinfo.com.my

Myanmar Ministry of Industry www.industry2.gov.mm

Philippines Bureau of SME Development

Department of Trade and Industry

http://www.dti.gov.ph/dti/index.php?p=79

Singapore SPRING Singapore http://www.spring.gov.sg/Pages/Homepage.a

spx

IE Singapore http://www.iesingapore.gov.sg/wps/portal

Thailand Office of SME Promotion of Thailand http://www.sme.go.th/cms/web/homeeng

Vietnam Agency for Enterprise Development

Ministry of Planning and Investment

http://www.business.gov.vn/index.aspx?Lang

Type=1033

AEC Blueprint Outlines

The framework for SME development in the region

Include

(a)objective

(b)Strategic action plans

(c)Policy instruments to support the growth of SMEs

(d) Integration into AEC

ASEAN SME Agencies Working Group (SMEWG)

Enhancing the capacity of SMEs towards the overall economic growth and realization of AEC Community, by 2015

Regional cooperation on SME development in ASEAN is guided by the Strategic Action Plan for ASEAN SME Development (2010-2015) or SAP SMED

• The Strategic Action Plan includes a Roadmap in 6 key dimensions: ( up to 2015)

(i) access to finance (ii) access to market and internationalisation (iii) access to human resources (iv) access to information and advisory services (v) access to technology and innovation (vi) access to good regulatory environment (new)

ASEAN SME Agencies Working Group (SMEWG)

ASEAN requires a strategy to transition SME to globally competitive and innovative by 2025

Task to develop The ASEAN Strategic Action Plan for ASEAN SME Development (2016-2025) or SAP SMED

Now, formulating the mission statement to express their (members of ASEAN SMEWG) commitment to promote ASEAN SME

“ By 2025, ASEAN shall create globally competitive, resilient and innovative SME seamlessly integrated to ASEAN community and sustainable development in the region”

(i) Promoting productivity, technology and innovation

(ii) Enhance market access and internationalization

(iii) Increase access to finance

(iv) Enhance policy and regulatory environment

(v) Promote Entrepreneurship and human capital development

Ministry of Industry

Focal point of ASEAN SMEWG for Myanmar

Collaboration network among international organization

Formulate the SME Law, Industrial policy and Industrial

zone law

Organize the various programs for information,

knowledge transfer , strengthening of capacity

and linkage

Providing the SME promotion and Implementation

programs in region

Restructure of organization

Legal Framework

Planning & Management

Implementation

Promotion of SME Development