Myanmar business opportunity

10 Prioritized Investment Activities
On 28th June 2017 the Myanmar Investment Commission (MIC) announced 10 prioritized Investment Activities that they would like to foreign investors to consider. Investors that invest in these activities and create jobs, upgrade the technology &/or productivity of Myanmar industry will enjoy benefits such as 3 to 5 years tax exemption and long term lease on property. Depending on the activities that you invest in foreign investors may be required to JV with local Myanmar citizen. Minimum investment capital required for manufacturing & services are USD 500,000 & USD 300,000 respectively if investors want to obtain an MIC Permit or Endorsement.

  1. Agriculture and its related services, value-added production of agricultural products
    • Distribution of low-cost irrigation systems to rural communities (e.g. solar-powered, with instruction)
    • Leasing of agricultural tools and machinery
    • Distribution of high-quality seeds for higher yields
    • Establishment of the production of fertilizers, crop protection chemicals etc
    • Contract farming (i.e. direct sourcing from rural communities based on partnership agreements)
    • Introducing value-added production / processing based on local agricultural produce (e.g. production of Mango Puree, Dry Fruits, Potato Chips, etc from local produce)
    • Establish packaging / canning industry for agricultural produce
    • Establishment of research and training institutions or demonstration farms on integrated agriculture, crop sequencing, fertilizer use, organic agriculture and agriculture-related business skill development
    • Construction of temperature controlled warehouses and cold storages for fresh produce
    • Microfinance, micro-insurance and trade finance services for farmers
  2. Livestock production, breeding and production of fishery products
    • Aquaculture of different types of fish (except fresh water fish)
    • Aquaculture of shrimp and prawn
    • Fish food production
    • Fish and seafood processing facilities
    • Cooling, canning and packaging facilities
    • Establishment of education and research institutions to broaden knowledge as well as the base of human resources available to the fisheries sector
  3. Export promotion industries
    • Myanmar agriculture – rice, maize, pulse, bean, etc
    • Myanmar fruits – mango, avocado, water melon, etc
    • Myanmar jewelry made from Myanmar jade, sapphire, ruby, gold, etc
    • Processed metal products made from Myanmar’s mined metal such as lead, tin, antimony, copper, etc
    • Myanmar designed furniture or crafts made from Myanmar wood or other natural resources
  4. Import substitution industries
    • Construction materials such as Cement and cement products, ceramics, faucets, pipes, floor tiles, roof tiles; quicklime & hydrated lime
    • Accessories required for building industries such as general lubricants, paints, HDPE and PVC pipes, electrical cables, grinding media, door frame, window frame, etc
    • Manufacturing of electricity distribution and control apparatus; and  electrical wire and wiring devices,
    • Manufacturing of telecommunication equipment
    • Steel, aluminum and glass industries supplying to the building industries
    • Edible oil such as palm oil, oil made from seeds found in Myanmar
    • Plastics products such HDPE & PVC pipes
    • Pharmaceuticals drugs
    • Fertilizers
    • Motor vehicle (CKD & SKD)
    • Motor vehicle spare parts
    • Processed rubber products such as tyre and glove that are made from Myanmar rubber
    • Setup UK, US or Singapore Education Institution in Myanmar – so that Myanmar students can get world class education in Myanmar and do not have to go overseas to study.
  5. Power sector
    • Construction of medium to large-scale hydro and gas-fired power plants in Public-Private-Partnerships
    • Investments into the transmission system (e.g. high-voltage transmission lines between the North of Myanmar and Yangon)
    • Realization of small-scale hydro-power projects e.g. to supply a village tract
    • Establishment of solar energy farms and wind power farms
    • Provision of efficient and practical solar-power kits to communities currently off-grid as well as of solar-power based solutions (e.g. solar-powered pumps, solar lighting)
    • Upgrading of the current power infrastructure in urban centers and industrial zones
  6. Logistic industries
    • Own and operate temperature controlled warehouses and trucks for shipping frozen and chilled products that are vital to the development of the vegetables, fruits, fisheries and dairy industries in Myanmar.
  7. Education services
    • College teaching business courses like MBA classes in association with University of London, Singapore Institute of Management, Kapan University,etc.
    • Middle or High School teaching UK, US or Singapore education curriculum. To prepare students for studying overseas?
    • Enrichment classes such as how to study and pass exam, computer school to teach coding, how to become a successful entrepreneurs, etc
    • Corporate training schools that teaches Myanmar people how to dress and business etiquette, business computer skills such as advance Microsoft Office, internet skills, online marketing skills, presentation skills, etc.
  8. Health care industry
    • Specialist hospital for treatment of Heart & Vascular (coronary); Cancer; Children (pediatrics); Ear, Nose & Throats (ENT). Kidney (renal), Lung (respiratory), Urinary & Reproductive (urology), Women (obstetrics & gynecology). etc
    • Laboratory for testing blood, urine, X-ray, Magnetic Resonance Imaging, etc
  9. Construction of affordable housing
  10. Establishment of industrial estate

To see the complete list of Promoted Sectors that DICA is promoting go to Promoted Sectors (or click here) to see a breakdown by sector under MIC Notification No 13/2017 of 1st April 2017.
 

What sectors are growing in Myanmar now and is opened to foreign investment?

  • Due to wide availability of 4G network in major cities in Myanmar – mobile value added services such as m-commerce, m-payment, gaming, entertainment and location based services are all booming. Even traditional value added services using SMS-based marketing tools are a growing opportunity as smart phone penetration is > 60% now in 2017 versus 4% in 2014 and the retail scene has exploded with the opening of new shopping malls and many international lifestyle oriented retail brands have also entered the market.
  • Insurance sector will be liberalized and opened to foreign investment before end of 2017
  • We expect banking, accounting & auditing industries to be opened to foreign investment as well by next year.

What are the new activities that foreign investors can owned 100% without requiring to JV with Myanmar citizen?

  • Production and distribution of hybrid seeds
  • Manufacturing of rubber products such as tyre or glove using Myanmar rubber
  • Ecotourism
  • Manufacturing of vehicles (CKD & SKD)
  • Manufacturing of vehicle spare parts
  • Manufacturing of construction materials such as steel or aluminum products, cement or cement products; ceramics; faucets; floor tiles; roof tiles; etc.
  • Establishment of hydro and gas-fired power plants
  • Establishment of solar energy farms or wind powered farms

Traditionally foreigners cannot be involved in trading operations i.e. foreigners cannot get an import or an export licence. However since 12th June 2017 the Myanmar government pass a notification allowing foreigners to operate trading business without having the need to JV with a Myanmar citizen in the following areas:

  • Construction materials
  • Hospital equipment
  • Fertilizers
  • Pesticides
  • Seeds

All along foreigners can own a Service Company 100% (i.e. does not require a Myanmar citizen as a JV partner) as it does not require an import licence to operate such a service.  Minimum capital required to setup a Service Company is USD 50,000.

  • Engineering consultancy services
  • Design consultancy services
  • Consultancy services in agriculture, fisheries and live stocks
  • Business advisory, marketing research and advertising services
  • Software development & IT services
  • Operating a restaurant or cafe
  • Operating a hotel that is ≥ 3 stars
  • Operating a wellness spa

The above are just some of the areas that you can explore. Myanmar now is like China in the 1980s – everything look old, grey and crumbling and everything need to be build anew. For more information – please visit the following sections on our website:

  • Tender and Award section and SEARCH* for more information on the type of tenders that are frequently called by the government ministries in Myanmar and which foreign companies have won the past tenders.
  • Looking for Business Partner section for local Myanmar company that are looking for foreign business partners who can inject technology, know how and capital into their business.
  • Market Entry Lite Strategy section for foreign companies that want to reduce the entry risk into Myanmar by at least one-third.
  • Company Incorporation section to submit a draft proposal of your company incorporation and to get our comments.

*Enter your query into the search box in the top right corner of our website.

To evaluate the various segments of the market that you could possibly enter base on your competencies you can do a Custom Market Entry Strategy Research. You can see a sample report at page “Actual Sample of Client Report”. Click here to go to page.