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Business Opportunities in Myanmar
Office of Commercial at YangonMinistry of Commerce
Thailand
Country Profile
NeighborsBorder(km)
Population
(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
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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. China 2,227 km 4
2. Thailand 2,099 km 3
3. India 1,453 km 2
4. Bangladesh 272 km 1
5. Laos 235 km -
Sea frontier Trading post
Tanintharyi coast 1,078 km 1
Rakhine coast 713 km 1
Delta coast 438 km -
Across-the-Border Trades
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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
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Role of Agricultural Sector
34% of GDP (including crops (26%),
livestock & fisheries (7%) and forestry (1%))
61% of Labor Force
44% 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.
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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
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Potential Business Opportunities
Developing the land, including irrigation facilities, for increased production in agriculture sector
Establishment of agro-based industries
Trading 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
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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)
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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)
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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
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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
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Minimum Foreign Capital
Industry: US$ 500,000
Service: 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
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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
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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 ([email protected])
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
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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: Bay of Bangal Initiative for Multi-sectoral Technical and Economic CooperationGMS: Greater Mekong Sub-regionACMECS: Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy
BIMSTEC
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
