Myanmar Land of Opportunities and Challenges 2016 What are the - - PowerPoint PPT Presentation

Myanmar

Land of Opportunities and Challenges

2016

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What are the associations?

U.S.A U.K. China Myanmar Aung San Suu Kyi

Where is Myanmar?

Myanmar’s Vital Statistics

Source: The World Bank/Myanmar Government Population

• Male
• Female

53.96 mln

• 49.43%
• 50.57%

Area 676,577 sq. km GDP Usd 46.947 bln (2012-13) GDP annual growth rate 7.6% (as of March 2013) Number of household 11.1 mln (2013) Working population

(age 15 & above)

31 mln (2013) Youth population

(age 15-24)

20 mln (2013) Tourist arrivals Over 2 mln (2014) Local system Common law SME size 126,237 (99.4%)

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In US Dollar in Million

No TOP 10 Exports Value

1

Natural Gas 2,522.5

2

Jade 2,204.9

3

Matpe ( Black Gram Bean ) 458.6

4

Garment 381.1

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Fish 306.0

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Rubber 302.0

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Teak Log 292.3

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Green Mung Bean 291.3

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Hardwood Log 282.0

10 Rice

194.4

In US$ Million

No TOP 10 IMPORTS Value 1 Petroleum Products

1,463.0

2 Machinery & Spare Parts

873.7

3

Iron & Steel Construction materials

430.4

4 Plastic Raw Materials

202.1

5 Palm Oil

198.8

6 Vehicles & Spare Parts

197.1

7 Pharmaceuticals

188.3

8 Ships, Boats

180.4

9 Cement

167.8

10 Fertilizers

162.6

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Myanmar’s Exports & Imports

FDI in Myanmar by Sector, as of 31/10/2014

Sector Particulars Permitted Enterprises Number Approved Amount

(in Usd mln)

% 1 Power 8 19,324.54 38.48 2 Oil and gas 132 15,177.32 30.22 3 Manufacturing 416 4,640.91 9.24 4 Mining 69 2,863.18 5.7 5 Transport & communication 27 2,858.04 5.69 6 Hotel & tourism 57 2,154.59 4.29 7 Real estate 28 2,120.15 4.22 8 Livestock & fisheries 32 441.318 0.88 9 Agriculture 16 240.645 0.48 10 Industrial estate 3 193.113 0.38 11 Other services 22 169.697 0.34 12 Construction 2 37.767 0.08 812 50,221.27 100

Source: HKMCC

Myanmar’s Foreign Investments

Myanmar’s Priorities

• in regard to itself
• Rural development and poverty reduction
• Agriculture development and industrialization
• Energy sector development
• Telecommunication development
• Micro-finance for rural people and SMEs
• Education and health sector development
• Human resource development
• Infrastructure development

• Building the Bangladesh-China-India-Myanmar

land bridge

• Counting Myanmar in building smooth, secure and efficient ocean

routes to connect the major sea ports along the ROAD

• Including Myanmar in strengthening infrastructural connection,

trade, investment, resource exploration, finance, ecology, culture, maritime development

• Maintaining the Ruili (Yunnan) – Kyaukpyu (Myanmar) oil and gas

pipeline, 2013

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China’s Priorities

• in regard to Myanmar

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MCL’s Priorities

• in regard to Myanmar

Opportunities

Myanmar’s Market Development

• relative to other Asean countries

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• High value merchanise
• Daily necessities
• Low value merchandise

Laos Cambodia Myanmar Indonesia Philippines Vietnam Malaysia Thailand

Myanmar’s Minimum Wage Level

• relative to other Asean countries

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• Myanmar : Usd100
• Cambodia : Usd140
• Vietnam : Usd156

Myanmar’s Import Sourcing

• general merchandise

Yiwu in Zhejiang Guangzhou in Guangdong

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Myanmar’s Other Opportunities

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Other Import Logistics Opportunities

Myanmar Plaza City Mart Holding Myanmar Parkson

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MITT

MITT is about 25km from city area

Yangon - Thilawa - MTT

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SEZ - 2,400 hectares MITT

Yangon Thilawa － MITT

Foreign Investment Law

100% foreign

• wned

Joint venture

Any “system” Included in the Mutually Agreed Contract

1 2 3

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A citizen or concerned Government

• rganisation

Starting Up Business - MMCL

• Documents requirements
• Business Permit
• Company Registration
• Capital requirement
• Min. USD50,000

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MMCL Team in Yangon

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Myanmar’s Transport and Logistics

Supply Chain Integration

1960s 1970s 1980s Physical Distribution Logistics Concepts Supply Chain Management

Finance Product Development Customer Development

www.vietnamsupplychain

Logistics Plus

• Logistics services

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LCL FCL Land, Air, Ocean Freight Break Bulk Out of Gauge

• CFS / Warehouse

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Logistics Plus

Logistics Plus

• Value added services (import to Myanmar)

Supply Sourcing PO Management Cargo Inspection LCL Consolidation FCL Customs Clearance Inspection/Quarantee Landside Delivery

MMCL’s Overseas Network

China & Hong Kong Japan & Korea ASEAN Italy Australia & New Zealand

Challenges

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Congested Roads & Terminals

Yangon Down Town Yangon Inner Port

28 Monkey Point

HTD (Hteedan) AWPT MIP SPW NANTHIDA BSW ICD 1 & 2

International wharves

• Yangon Port – 17 wharves
• Thilawa Port – 6 wharves

Total – 23 wharves ICD – 3 Depots

Yangon Inner Harbour – Terminals & ICDs

Competition

• general merchandise logistics

Competition from existing agents in China

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Competition

• FMCG logistics

Resources?

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Myanmar’s Business Transaction

• still cash based

Myanmese People and Culture

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Government Effectiveness

Putting into perspective

Strengths

1. Strategic geo-political & commercial location 2. Opening up for business & investment 3. Pragmatic leadership 4. Peaceful foreign policy 5. Large and young population 6. Rich in natural resources

Weakness

1. Complex bureaucratic regulations & legal issues 2. Rudimentary financial market 3. Inadequate infrastructures 4. Limited industrial diversification 5. Lack of international exposure 6. Insufficiency of skilled labour

Opportunities

1. On the Maritime Road 2. Last frontier in ASEAN 3. Connectivity with end-markets 4. Strategic interest to China & USA 5. Investment in infrastructure, tourism, trade & commerce, education & ecology (the “green” vision)

Threat

1. Risks associated with reforms – economic, social, and political 2. Negative impact on environment resulting from massive industrialization 3. Inflationary pressure resulting from rapid economic expansion 4. Conflict with ethnic minorities 5. External political forces impacting internal political, social and economic stability

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SWOT Analysis - Myanmar

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On balance…

Put a Marker on this Land of Opportunities

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Communication

Shenzhen Shunde Yangon

To follow up…

Myanmar Star

39 www.mclhkg.com.hk

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A New Chapter in Myanmar

One Belt One Road

P P

(People) (People)

G G

(Government) (Government)

B B

(Business) (Business)

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Questions & Comments