The 12th Myanmar-Japan CCI Joint Meeting, Tokyo, Japan

Myanmar Potential in Manufacturing, Trade & Services

by:

Moe Myint Kyaw, Mr.Secretary GeneralThe Union of Myanmar Federation ofChambers of Commerce & Industry

Wednesday 28th September 2016

New Myanmar Economic Policy

❖ To improve financial sector

❖ To promote SME in order to create more job opportunity

❖ To improve physical infrastructure and iT infrastructure

❖ To promote Manufacturing, Agriculture and Livestocks sectors

❖ To facilitate Local business industries and foreign direct investment

❖ Environmental conservation, improve public services, fare taxation, protection of intellectual properties.

Potential of Key Manufacturing Industry

❖ Agro-based industry

❖ Farm machinery

❖ Seafood Industry & Aquaculture

❖ Value-added forestry products

❖ Labour intensive processing industry

❖ Import substitute food & consumer products

❖ Co-manufacturing

❖ Oil & gas sector

Rice, one of the

Promising Industry

Crop SeasonProduction

(Million Acres)Paddy Yield

(MT per Acre)

Rain Crop 16-16.51.00-1.55

(45-70 basket)

Summer Crop 2.5-3.01.66-2.30

(85-110 basket)

RICE PRODUCTION IN MYANMAR

Milled Rice Production: 14-15 million metric ton annuallyMilled Rice Consumption: 12-13 million metric ton annuallyExportable milled rice about 2 million metric ton annually

❑Assembling and manufacturing light agricultural machinery and small farm implements

❑Power tiller and implements

❑Reaper and combine harvester for small scale farming

Farm Machinery Utilizing in 2013

and Potential in Myanmar

Tractor 25,000Power Tiller 227,489Mono-wheel Tractor 5,110Cultivating Roller Boat 4,809Paddy Thresher 48,520Combine Harvester 3,200

0

500

1,000

1,500

2,000

1st Quarter2nd Quarter

3rd Quarter4th Quarter

Total Generated : 9,737.60 mil Kwh

Thermal8%

Hydro

67%

Gas24%

Diesel

1%

PERCENTAGE SHARE OF ELECTRICITY GENERATION BY SOURCE (FY 2012 – 2013)

Current Electricity Generation Composition (2013-

2014)

Hydroelectric 74%

Gas 21%

Thermal 4%

Diesel 1%

*Source: Department of Electric Power

Peak Demand Forecast (Summer)

Demand (MW)

2014 2370

2015 2844

2016 3950

2017 3130

Increase in Investments in Electricity Sector in million USD

2011-2012 2012-2013 2013-2014 2014-2015

No. Amount No. Amount No. Amount No. Amount

Local - - 1 6.34 2 184.51 - -

Foreign (JV) 1 4343.97 - - - - - -

Foreign (100%) - - 1 364.201 1 46.51 1 40.11

Source: Directorate of Investment & Company Administration (November 2014)

Infrastructure-Power Sector

• 18 ONSHORE BLOCKS & 22 OFFSHORE

BLOCKS ARE OPERATING BY MULTI-

NATIONAL COMPANIES.

• 32 ONSHORE BLOCKS ARE EXPOSED FOR

NEXT BIDDING SOON

• 23 OFFSHORE BLOCKS ARE AVAILABLE FOR

INVESTORS.

OIL AND GAS SECTOR

Crude Oil (MMBBL) Natural Gas

(BSCF)

Compressed Natural Gas

(BSCF)

2011 – 12 6.452 436.7 7.154

2012 – 13 6.461 447.2 7.195

2013 – 14 6.520 697.1 7.194

2014 – 15 6.560 741.5 7.189

2015 – 16 6.615 744.7 7.201

Production Plan

A N D A M A N

S E A

BAY

OFBANGL

KACHIN STATE

CHIN

STATESHAN STATE

KAYA STATE

KAYIN

STA

TE

MONSTAT

SAGAING

DIVISION

MAGWAY

DIVISION

BAGO

DIVISION

YANGON

DIVISION

MANDALAY

DIVI

SION

AYEYARWADY

DIVISION

TANINTHARYI

DIVISION

CHINA

LAOS

THAILAND

INDIA

BANGLADAHS

34 INDUSTRIAL ZONES IN MYANMAR

20 Industrial Zones in

Yangon State

3 Industrial Zones in

Ayeyarwaddy State

1 Industrial Zone in Chin

Division

3 Industrial Zones in

Mandalay State

1 Industrial Zone in Shan

Division

2 Industrial Zone in

Magway State1 Industrial Zones in Bago

State

1 Industrial Zone in Mon

Division

1 Industrial Zone in

Tanintharyi State

1 Industrial Zone in

Sagaing State

Source : Ministry of Industry

Annual Registering Condition of Private Industries

Sr No DescriptionSize of Industries

Total

Large Medium Small

1. Milk and Milk Product 33 27 4 64

2. Oil 261 825 1866 2952

3. Confectioneries 182 219 404 805

4. Rice 691 2079 13894 16664

5. Beverages 462 243 145 850

6. Alcohol related Products 59 16 19 94

7. Fish and Meat based products 72 55 94 211

8. Snacks 46 30 28 104

Total 1806 3494 16050 21744Registration of Major Private Food Industries

(2013-2014 Fiscal Year)

MAJOR TRADING OF MYANMAR

Major Export Items Major Import Items

• Natural Gas • Petroleum Products

• Jade • Machinery and spare parts

• Timber • Iron and steel construction materials

• Pulses and Beans • Plastic raw materials

• Marine Products • Palm oil

• Raw Rubber • Vehicles and spare parts

• Garment • Pharmaceuticals

• Rice • Cements

• Fertilizers

Export of Commodity Type

Commodity (USD Million)

2012-2013 2013-2014 2014-2015

Rice 544.1 460.1 651.9

Maize 200.1 285.8 392.8

Matpe 382.8 376.4 469.6

Padesein 273.7 310.1 368.7

Pesingon 170.4 114.5 207.6

Gram 34.3 2.7 8.8

Other Pulses 100.5 92.6 852.0

Sesame Seeds 278.3 340.6 182.0

Onion 3.0 27.4 8.7

Tamarind 7.7 6.6 6.7

Raw Rubber 217.8 197.5 113.0

Hide & Skin 7.8 5.6 3.9

Fresh & Dried Prawns 94.7 59.7 56.3

Fish & fish products 442.2 311.0 249.7

Crab 30.4 58.3 50.7

Teak Log 327.5 637.5 7.4

Commodity(USD Million)

2012-2013 2013-2014 2014-2015

Teak Conversion 31.7 30.4 29.2

Hardwood Log 209.8 225.3 3.4

Hardwood Conversion 10.5 7.0 4.0

Plywood & Veneer 8.1 10.9 35.3

Base Metal Ores 92.0 130.1 440.4

Gas 3666.1 3299.2 5178.6

Jade 297.9 1011.6 1018.0

Garment 695.4 884.7 1023.4

Others 850.2 2318.4 1928.4

MYANMAR KEY INDUSTRIES INVESTED BY VALUE

Permitted Enterprises as of Apri 30, 2015 in million US$

No Industry No. Value of Sector %

1 Oil & Gas 151 19,641 34.79

2 Power 8 19,324 34.22

3 Manufacturing 485 5,607 9.93

4 Transport & Communication 28 3,183 5.64

5 Mining 70 2,868 5.08

6 Real Estate 29 2,277 4.03

7 Hotel & Tourism 57 2,208 3.91

8 Livestock & Fisheries 34 452 0.80

9 Agriculture 17 242 0.43

10 Industrial Estate 3 193 0.34

11 Construction 2 37 0.07

12 Other Services 31 427 0.76

Total 915 56,466 100

Source: Directorate of Investment and Company Registration, Ministry of National Planning and Economic Development

Trade Indicators

Indicator MyanmarEast Asia &

PacificOECD

Documents to export (number)

8 6 4

Time to export (days) 20.0 20.2 10.5

Cost to export (US$ per container)

620.0 864.0 1,082.2

Cost to export (US$ per container)

620.0 864.0 1,082.2

Documents to import (number)

8 7 4

Time to import (days)

22.0 21.6 9.6

Cost to import (US$ per container)

610.0 895.6 1,101.6

Cost to import (US$ per container)

610.0 895.6 1,101.6

Source: World Bank Doing Business (2015 Doing Business Report)

Nature of Export & Import Procedures

Nature of Export ProceduresDuration

(days)US$ Cost

Documents preparation 12 175

Customs clearance and inspections 3 80

Ports and terminal handling 3 165

Inland transportation and handling 2 200

Total 20 620

Nature of Import ProceduresDuration

(days)US$ Cost

Documents preparation 10 165

Customs clearance and inspections 4 80

Ports and terminal handling 6 165

Inland transportation and handling 2 200

Total 22 610

Doing Business Rankings

Topics DB 2015 Rank DB 2014 Rank Change in Rank

Starting a Business 189 189 No Change

Dealing with Construction Permits 130 134 4

Getting Electricity 121 124 3

Registering Property 151 151 No Change

Getting Credit 171 169 -2

Protecting Minority Investors 178 178 No Change

Paying Taxes 116 115 -1

Trading Across Borders 103 135 32

Enforcing Contracts 185 185 No Change

Resolving Insolvency 160 159 -1

Source: World Bank Doing Business (2015 Doing Business Report)

Thank You

for Your Kind Attention!