Thaung Su Nyein / UMFCCI

30th January 2013

Yangon, Myanmar

1

A big welcome to the Austrian Delegation.

2

Where are we headed?

3

Place to be for investors

4

Greater international stage!

5

Free flow

6

ASEAN Free Trade Agreement

7

Myanmar Pop: 60 mn $57.5 bn

India Pop: 1.2 bn

$3.5 tn ME, EU, Africa

China Pop: 1.3 bn

$8.8 tn

Bangladesh Pop: 156 mn

$242 bn Thailand

Pop: 67 mn $540 bn

Laos Pop: 7 mn

$15 bn

TOTAL Pop: 2.8 bn

GDP: $13.2 tn

India, China and ASEAN

wealth could top the West

by 2030

With a total area of 676,577 sq km, it is the largest country in mainland South

East Asia. 8

64% 8%

4%

4%

2% 1% 17%

Food & Beverage Construction Materials

Minerals & Petroleum Apparel

Personal Goods Industry Raw Materials

Other

9

38%

26%

10%

8%

7%

5%

6%

Natural Gas Agricultural Products Mineral Products

Marine Products Forestry Garments

Other

More than 70% of export goes to the Asian region 10

23%

13%

7% 6% 5% 4%

42%

Petroleum Products Automobiles & Spare Parts

Steel Iron & Steel Wares

Machines & Spare Parts Palm Oil

Other

More than 90% of imports come from the Asian region 11

40%

38%

8%

5% 3% 3% 1% 2%

Energy Oil & Gas

Mining Industry

Hotels & Tourism Property Development

Fisheries & Livestock Other

12

13

Previous sanctions have lead to a local market which relies mainly on Asian products, with limited choice for consumers.

A Local Market of 60 Million People

14

90% literacy rate

Population largely unemployed or under-employed

Abundant Human Resources

15

Construction of roads, railways and ports is underway

Highway system links Myanmar to all neighbors

AEC- Asian Economic Community- 2015

Improved Connectivity

16

Many natural resources, largely untapped

Very rich in ruby, jade, sapphire and limestone

Large reserves of copper, lead, zinc, tin, tungsten, gold, coal and barite.

OIL and GAS!

Abundant in Natural Resources

17

18

19

20

June 2011 2.3 million vehicles

142,395 km of road network

21

22

23

24

25

60 million population. 4 million mobile phones in service.

26

Better environment for investors

Mainstreaming of investment process / Lower transaction

costs

Lower cost for registering property

Stronger financial sector / Financial sector reforms

Increased transparency and anti-corruption policies

Incentives for investment, simplified procedures for

businesses

27

Natural resource based industries ◦ Natural gas

Largest export item

◦ Other mineral products

Many kinds of mineral resources

Still untapped mineral resources

Huge potential for agricultural production ◦ Potential cropping intensity

◦ Huge global demand

◦ Potential abundant

28

Export oriented agro-based industries.

Labour intensive manufacturing – garment, footwear, toys, etc…

Regional market oriented industries.

29

Depends on what you want to do and what your long term objectives are.

TRADING INVESTMENT JOINT VENTURES

• Many Myanmar looking for partners

• Very easy and cheap to be registered

• Should consider mutual benefits

• Selective

• Reasonable benefits

• Economic long term

• Must check current infrastructure

• Must be adaptable

• Must be flexible

• Some high costs

• Mutual benefit mutual risks

• Available with both private and government sector

• Economized land

• In kind relation

• Can sell or purchase equity

• Consider repatriation of profits

30

Involves mainly in ◦ Agriculture

◦ Manufacturing & processing

◦ Trading

◦ Services

◦ Banking

◦ Construction

More than 90% of total GDP ◦ Nearly 100% in Agriculture

◦ About 70% in Industry

◦ About 65% in Trade

31

Sr. Sub- sector Total Number Share %

1 Food & Beverage 27,642 63.94

2 Clothing& Wearing Apparel 1,681 3.89

3 Construction materials 3,278 7.58

4 Personal goods 1,036 2.40

5 Household goods 305 0.70

6 Printing & Publishing 329 0.76

7 Industrial raw materials 562 1.30

8 Mineral & Petroleum 1,893 4.38

9 Agricultural equipment 61 0.14

10 Machinery & equipment 126 0.29

11 Transport vehicles 289 0.67

12 Electrical goods 67 0.15

13 Miscellaneous 5,962 13.79

Source: Ministry of Industry 43,231 100

32

Year State Co-operative Private

1986/87 41.6 4.2 54.2

1998/99 28.6 0.9 70.8

2000/01 27.6 1.2 71.2

2007/08 25.1 0.7 74.2

2009/10 7.4 1.4 91.2

33

Dominant Force in Myanmar’s national economic development.

Contributing 34 % of GDP, 61.2 % of total employment and 15.4 % of export

earning in 2008-09.

Change from “mono crop” to “multiple crop” pattern.

Leading producer as well as exporter of beans and pulses among ASEAN and

second largest exporter in global market.

The government allowed leading private companies to involve in commercial

farming business with many incentives.

Extensive rice cultivation method of commercial farming that has never been

before.

Now, more than half million hectares are engaged in this program.

34

EXISTING INVESTMENT & POTENTIALS IN AGRICULTURE SECTOR

Foreign investment in this sector is only USD 173.10 Million,

which Is 0.43% of the total investment.

Local investment in this sector is also Kyat 547.90 Million,

only 0.4% of its total.

Production of seeds and value-added production from

various crops are some potentials areas for investment in

Agriculture sector.

35

Very rich in forest resources

Myanmar teak is highly reputable in the world market.

It has a large variety of timber species with some lesser

known species.

Production of value added wood based products is a

prosperous business area for investment.

36

Long sea coastline of 2,832 kms

229,000 sq km of continental shelf

486,000 sq km of EEZ.

Value-added marine products industries are very promising.

Varied marine and inland fishery resources (shrimp , prawn

and fresh water fish breeding)

37

There are (130) cold storage facilities in Myanmar, out of which (75) are situated in

Yangon Division.

Yangon Division has great potential for the extensive investment in cold storage

facilities.

There is no investment in the Cattle breeding and tremendous potential exists for

investment for high quality species.

There is illegal export of cattle to the neighbouring countries.

Production and export of meat is a great opportunity for the existing demand.

Organic farming of poultry and eggs production has abundant prospects to enter to

local and export market, investors can invest not only in production but also for invest

in service provision regarding Hygiene Certification, quality Inspection certification and

others.

38

Rich natural energy resources.

Abundant hydropower potential.

FDI welcome from South Asian countries for energy

cooperation.

Private companies to invest in offshore and

onshore oil and gas exploration projects.

39

Several power plants are under implementation which respectively are located in Mandalay, Magway, Bago regions and Rakhine State as well as Chindwin river valley.

Potential for Hydro Power Resources

Ayeyarwady river 2,170 km (1,348 miles)

Chindwin river 1,207 km (750 miles)

Thanlwin river 2,815 km (1,749 mile)

Sittaung river 420 km (261 miles)

40

Many famous mines

Many opportunities to work under FDI in various fields of mining.

Mining extensively quality gems such as Rubies, Jade, etc.

Manufacturing of jeweler and jade carving are quite popular.

Myanmar ranks high among the Asian countries in terms of mineral potential.(copper, lead, zinc, tin, gold, limestone, granite and marble).

41

Very Rich Rich Fairly Rich Poor

Jade,

Ruby,

Sapphire

Limestone

Copper,

Lead,

Zinc,

Tin,

Tungsten

Gold,

Coal,

Barite

Antimony

Silver,

Nickel,

Gypsum,

Iron

Cromite,

Manganese,

PGM Minerals,

Radioactive Minerals,

Diamond,

Fertilizer Minerals,

Fluorite,

Bauxite,

Mercury,

Kaolin,

Feldspar,

Quartz,

Bentonite,

Mica

Prospecting Permits 1 Year

Exploration Permit 1 Year

Feasibility Study 1 Year

Subsistence Mining

Permit 1 Year

Small scale Mining

Permit 5 Years

Large scale Mining

Permit 25 Years

Categories of Mining Permit

42

Thank you for your attention!

Thaung Su Nyein / UMFCCI

43