Yatanarpon Cyber City (Myanmar):
Making it work
Zaw Min Htwe
CPRSouth6: ICT & Economy
9-10 December, 2011, Bangkok
Introduction
ICT Parks have proved a vital element for
economic improvement in developing
countries
Yatanarpon Cyber City (YCC) was
established, inviting local and foreign
investments
It is estimated that US $ 52 millions were
invested for YCC establishment (Digital
Review Asia-Pacific 2009-2010)
Research Issue
No Foreign Investments have been
found yet as of early 2011
Why ?
Are the incentives of YCC attractive ?
Are the facilities of YCC adequate ?
Are the human resources qualified enough ?
Are the Foreign Investment Policy of
Myanmar conducive or restricted ?
Presentation Outline
Introduction (research issue & questions)
Methodology
Findings
Policy Implications
Conclusions
Methodology
Primary Data
-
Questionnaires were distributed to 35 out of 50 selected
companies in Myanmar Info-Tech (MICT Park);
Multiple Choices & Open type questions were used in the
survey. For instance,
-
“What about the the availability of qualified HR ? (a) Highly
Available & Qualified enough (b) Limited Available &
Qualified Enough (c) Highly Available & Not Qualified (d)
Limited Available & Not Qualified”
-
“What will be the challenges for foreign investors doing
business at YCC ?”
-
“Do you have any plan to expand business in YCC ?”
Methodology: cont’d
Interviews with 5 local companies, currently operated
business at YCC; 7 key persons from the Professional
Associations, Implementing body and other successful
companies
Questions, For instance,
-
“What are the major reasons for expanding business in YCC ?”
-
“What are the major drawbacks of YCC ?”
Secondary Data
-
Government official data from Central Statistical
Organization 2009, Reports, Journals, Websites,
Newspaper, and previous research
Findings & Policy Implications
1. Incentives are not favourable to investors, particularly in
tax incentive for IT related businesses.
Table 1 : Tax Incentives of QTSC and YCC
Incentives
QTSC
(Vietnam)
YCC
(Myanmar)
Corporate Income Tax
10%
30%
Value Added Tax
NO VAT
0%-200%
Source: Quang Trung Software City, Directorate of Investment &
Company Administration, DICA
 Desirable tax incentive programs should be
introduced for ICT related foreign investments
Findings & Policy Implications: Cont’d
2. Facilities are adequate in terms of telecommunication
and space availability but lack other facilities to
facilitate One-Stop Services
Facilities
QTSC (Vietnam)
YCC (Myanmar)
Telecommunication
Broadband Internet,
GSM, VOIP
Broadband Internet,
GSM, CDMA, VOIP
Location & Space Availability
HCMC & Limited
POL & Abundant
One-Stop Services
Available at HCMC
Not Yet Available
- Obtaining the licenses
YES
NO
- Logistical Supports
YES
NO
- Banking
YES
NO
- Visa Application
YES
NO
Source: Quang Trung Software City, Yatanarpon Teleport Co., Ltd, and Survey Results
 Collaborative actions among the domestic and international
Organizations should be practiced to facilitate One-Stop Services.
Findings & Policy Implications: Cont’d
3. Qualified Human Resources are limited;
Institutions
# of
Quality of
Graduates/Year Graduates
Computer Universities
7,469
Not Industry Ready
ICTTI (Japan Funded)
160
Industry Ready
IMCEITS (India Funded)
200
Industry Ready
Source: CSO 2009, University of Computer Studies, Yangon, and Survey Results
 University-Industry collaboration programs should be
introduced to produce more industry-ready HRs
while taking advantage of low-labor cost
Findings & Policy Implications: Cont’d
They can be hired at low cost
Table 3: Annual IT Labor Wages in some Asian Countries
Country
Annual IT Labor Wages (USD)
China
India
Indonesia
Myanmar
Philippine
Thailand
19,674
13,592
7,017
1,200 – 8,400
8,816
21,117
Source: ZDNet Asia IT salary benchmark 2010; Yatanarpon Teleport Co., Ltd;
Survey Results
Findings & Policy Implications: Cont’d
4. Foreign Investment policies are conducive to
some extents despite no investment in YCC
Chart 1 : Foreign Investment in Myanmar (US$ in millions)
16000
14400
12800
11200
9600
8000
6400
4800
3200
1600
0
Source: Central Statistical Organization 2009
Findings & Policy Implications: Cont’d
Table 4: Total Foreign Investment by Industrial Sector as of March 31, 2009
Sr
Sector
1
2
3
4
5
6
7
8
9
10
11
12
Agriculture
Fishery
Mining
Oil and Gas
Manufacturing
Power
Transport
Hotel & Tourism
Real Estate
Industrial Estate
Construction
Others
TOTAL
No. Of Enterprises
4
25
60
88
154
2
16
44
19
3
2
6
423
Total Investment
(USD in Millions)
34.351
324.358
1395.886
3,357.478
1,628.896
6,311.222
313.272
1,049.561
1,056.453
193.113
37.767
23.686
15,726.043
Source: Central Statistical Organization 2009
 Special adjustments, designed for IT development, need to be
made. YCC should be entitled as Special IT Development
Zone with supporting industries.
Conclusion
Incentives offered by the YCC are not favourable for investors,
particularly in tax system
 Corporate Income Tax & VAT should be adjusted
Facilities in terms of telecommunications and space availability are
adequate but lack other facilities
 Collaborative actions among the domestic and international
organizations should be practiced to facilitate OSS
Availability of Qualified Human Resources is limited
 University-Industry collaboration programs should be introduced to
produce more industry-ready HRs
Foreign Investment policies are conducive to some extents despite no
investment in YCC
 Adjustments, specially designed for IT Development, need to be
made while designating YCC as Special IT Development Zone
along with supporting industries.
Thank You !
For further information and/or comments,
please contact me at:
zmhtwe@iuj.ac.jp