Business Opportunities in
Myanmar
Office of Commercial at Yangon
Department of Export Promotion
Ministry of Commerce
Country Profile
Border
(km)
Populatio
n (mil)*
Border
Trading
Posts
Bangladesh
272
154
2
India
1453
1148
2
China
2227
1330
4
Laos
235
7
-
Thailand
2099
65
4
6285
2704
12
Neighbors
*Encarta 2009
Basic Country Data
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




Land Area:
676,577 sq. km. (Thai : 522,000 sq.km)
Population:
57.50 million
Export:
US$ 6.8 billion*
Import:
US$ 4.5 billion*
Main Exports: Agriculture, livestock and
forestry products, Natural gas
Main Imports: Machinery, transportation,
construction material, industrial raw materials,
consumer goods
*2008-09
Across-the-Border Trades
1.
2.
3.
4.
5.
Thailand
Laos
China
Bangladesh
India
Rakhine coast
Delta coast
Tanintharyi coast
Land frontier
Trading post
2,099 km
235 km
2,227 km
272 km
1,453 km
3
4
1
2
Sea frontier
Trading post
713 km
438 km
1,078 km
1
1
Land Utilization in Myanmar





Net Sown Land
Waste Land
Forest Land
Other Land
Total
Source: Ministry of Agriculture and Irrigation 2008
12.1 mil. ha. (18%)
5.7 mil. ha. (8%)
33.3 mil. ha. (49%)
16.5 mil. ha. (25%)
67.6 mil. ha. (100%)
Land Utilization in Myanmar
Other Land 16.5 mil ha (25%)
Net Sown 11.9 mil ha (17%)
Net Sown 10.8 mil ha (16%)
Waste Land
5.7 mil ha
(9%)
Fallow
10.8
Net Sown Land
Waste Land
Forest Land
Other Land
Forest Land 33.4 mil ha (49%)
Source: Ministry of Agriculture and Irrigation 2008
Role of Agricultural Sector

34% of GDP (including crops (26%), livestock &
fisheries (7%) and forestry (1%))
61% of Labor Force
 44% of Export Earnings (crops (17%),

livestock & fisheries (20%) and forestry (7%))
Source: CSO, Ministry of Commerce, Myanmar
Trade Policy

Domestic Agricultural Marketing


Released all government controls on all crops
including quota purchase on rice, sugarcane,
cotton and rubber.
Farmers can trade their produce freely in
domestic markets.
Agricultural Trade Policy (contd.)

Export Marketing



Exports of rice is being allowed to private companies
based in divisions (provinces) where surplus rice are
available
Other crops (e.g. pulses, oilseeds such as sesame,
groundnut etc. and industrial crops such as jute, kenaf,
rubber etc. have no restriction to export)
New industries for value-added agricultural
commodities are also being encouraged to export
Legal Frameworks for Investment
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Liberalized domestic and export markets
in agriculture sector since 1988
Foreign Investment Law (1988)
State Economics Enterprises Law (1989)
Private Industrial Enterprise Law (1990)
Promotion of Cottage Industrial Law
(1991)
Myanmar Citizens Investment Law (1994)
Source: Myanmar Investment Commission
Potential
Business Opportunities
Developing the land, including irrigation
facilities, for increased production in
agriculture sector
 Establishment of agro-based industries
 Trading produce and value-added
products

Developing the Land

Central Committee for the Management of
Cultivable Land, Fallow Land and Waste
Land (CCMCL)

Agriculture



Plantation crops
Orchard
Seasonal crops
(1 hectare = 2.471 acres)
Source: Ministry of Agriculture and Irrigation
5,000 acres
3,000 acres
1,000 acres
Developing the Land (contd.)

Central Committee for the Management of
Cultivable Land, Fallow Land and Waste
Land (CCMCL)

Livestock, Poultry Farming and Aqua-culture


Aqua-culture
2000 acres
Livestock and Poultry Farming



Buffalo, Cattle, Horse
Sheep , Goat
Poultry, Pig
(1 hectare = 2.471 acres)
Source: Ministry of Agriculture and Irrigation
5000 acres
1000 acres
500 acres
Developing the Land (contd.)

Larger land area of up to (50,000 acres)
can be allowed for foreigners with the
approval of the Cabinet through Myanmar
Investment Commission (MIC)
Developing the Land (contd.)

Period of Occupancy

Initial (30) years which can be expandable
upon negotiation depending on the types of
crops and nature of investment
Source: Myanmar Investment Commission
Recommended Crops for the Regions
Sr.
States/Divisions
Hectare
(000)
Major Types of Activity
1
Kachin
1,953
2
Kayah
38
Seasonal, Plantation Crops
3
Kayin
133
Orchards, Plantation Crops
4
Chin
1,256
5
Sagaing
200
Orchards, Seasonal Crops
6
Tanintharyi
317
Orchards, Rubber, Oil Palm, Other Plantation
7
Bago
145
Orchards, Rubber, Seasonal, Plantation Crops
8
Magwe
98
Orchards, Seasonal Crops
9
Mandalay
170
Orchards, Seasonal Crops, Fruits
10
Mon
67
Rubber, Oil Palm, Orchards, Plantation, Fruits
11
Rakhine
122
Orchard, Rubber, Plantation Crops
12
Yangon
28
Rubber, Orchard, Seasonal Crops
13
Shan
14
Ayeyarwady
Total
2,461
104
5,701
Source: Ministry of Agriculture and Irrigation (2008)
Orchards, Seasonal, Plantation Crops, Fruits
Orchards, Sericulture, Tea, Fruits
Orchard, Tea, Coffee, Seasonal, Plantation Crop
Orchard, Paddy, Seasonal Crops
Types of Foreign Investment in
Agriculture Sector
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100 percent foreign investment
Joint venture with public sector
Joint venture with private sector
100% Foreign Investment



To Invest 100% of foreign capital and
technology
Product sharing with the government
Tax incentives prescribed by foreign
investment law will be allowed
Joint-Venture with Public Sector



To invest minimum 35% foreign capital and
technology, the remaining will be
contributed by the related state enterprise
Product Sharing Ratio to be proposed
Tax incentives prescribed by foreign
investment law will be allowed
Joint-Venture with Private Sector



To invest at least 35% of foreign capital and
technology, the remaining will be
contributed by the private partner
Product Sharing Ratio to be proposed
Tax incentives prescribed by foreign
investment law will be allowed
Minimum Foreign Capital
Industry: US$ 500,000
 Service: US$ 300,000

Source: Myanmar Investment Commission
Types of Agri-business
allowed for Foreign Investment

Agriculture


Cultivating, producing, processing and marketing
of seasonal agricultural crops
Establishing plantations, producing, processing
and marketing of their produce
Source: Myanmar Investment Commission
Potential Agro-based
Industries

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Sugar Industry
Cotton Industry
Rubber Industry
Jute Industry
Oil Palm Industry
Edible Oil Industry
Processed Foods (Fruits &
Vegetables etc.)
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Bio-fuel Industry
Animal Feed Industry
Essential Oil Industry
Fertilizer Industry
Agro-Chemical Industry
Seed Industry
Small Scale Agri Machinery
and others
Bio-fuel Industry

Bio-ethanol


Sugarcane, Cassava, Corn, Sweet Sorghum
Bio-diesel

Jatropha, Rape Seed, Rubber Seed, Oil Palm
Steps to be taken for Agri-business
Development in Myanmar



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Brief project proposal to DAP, MOAI*
Feasibility Study to be done with related
enterprise of MOAI
Submit project proposal to MOAI including
product sharing scheme
Submit 100% foreign investment proposal
including product sharing agreement to
MIC
*DAP, MOAI: Department of Agricultural Planning, Ministry of Agriculture and Irrigation (trade-dap@myanmar.com.mm)
Trading of Agricultural
Products
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Export
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Quality Rice
Maize
Peas and beans
Rubber
Cashew nut
Sugar
Jute, Kenaf
Coffee
Vegetables & Fruits

Import
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Hybrid and Quality
Seeds
Small Scale Agri
Machinery
Fertilizers & Pesticides
Earth Moving
Equipments
Water Pumps
Food Processing
Machines
Myanmar’s Regional Economic
Integrations
ACMECS
GMS
China
Nepal
India
Bhutan
Bangladesh
Sri Lanka
BIMSTEC
Vietnam
Laos
Cambodia
MYANMAR
Thailand
Korea
Brunei
Malaysia
Singapore
Indonesia
BIMSTEC:
GMS:
ACMECS:
Japan
Bay of Bangal Initiative for Multi-sectoral Technical and Economic Cooperation
Greater Mekong Sub-region
Ayeyarwady-Chao Phraya-Mekong Economic Cooperation Strategy
Philippines
ASEAN+3
Conclusion
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Myanmar will remain agricultural base for a
foreseeable future
Present resources and markets lead to
agribusiness development
Myanmar will become a major food supplier
in the region in future
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Thank you for your kind attention and
welcome to questions and comments.

www.depthailand.com