Investment Opportunities : Sector By Sector
(a)
Agriculutre
Agriculture sector is a major economy of Myanmar and it contributes about 40% to the GDP. We have vast potentials of land resources for cultivation and for further expansion of the cultivable land with the total area of 67.6 million hectares, of which only 16% is under cultivation. Foreigners or organizations consisting of foreigners may also apply to MIC for the right to cultivate or utilize land. There is a land regulation under which anyone wishing to develop these uncultivated lands can apply up to 5000 acres depending upon type of agricultural activities to be undertaken inclusive of livestock and aquaculture. However, for those wishing to develop perennial groups (oilpalm, rubber and like), land can be granted up to 50,000 acres. Besides, investors are encouraged into the assembly and manufacture of farm machinery and implements. The list includes power tiller, walking tractor, diesel water pump, sprinkler, thresher, seeder, weeder, and dryer. Also, priority is given to industries that produce sugar, cotton, jute, rubber, pesticide, edible oil, canned foodstuff, animal feed, PVC pipes and hoses, cold storage facilities, and packaging materials for agricultural produce.
(b) Marine Products
Having a long coastline of 2832 km, Myanmar's continental shelf covers about 228,780 sq km and exclusive economic zone is 486,000 sq km wide, the country is endowed fishery resources with a sustainable annual yield of 1.05 million metric tons in marine fishing and 1.5 million metric tons in fresh water fishing. In 2003-2004, Myanmar exported fish and shrimp 205463.17 Metric Ton value in US$ 166.947 million. Licenses can be obtained for joint-venture fishery projects. Other opportunities granted to the foreign investors in Livestock and Fishery Sector are : Breeding of pig, poultry and cattle, production of vaccines for pig, poultry and pets, veterinary pharmaceuticals, setting up of ice plant, cold storage facilities, fish meal and canning plants, shrimp farm and production of bee products.
(c) Forestry
About 52% of Myanmar's land area (130,000 square miles) is covered with forests and more than 8570 species of plant can be found. Reserved forests area increased from 14.9 per cent in 1988-89 to 23.2 percent in 2005-06 or 1.6 times. Currently, Myanmar has a sustainable yield of about 0.3 million hoppus tons of teak and 1.4 million hoppus of hardwood annually. Teak item exported are veneer, plywood, furniture, carvings, joinery, flooring products, and molding etc. There are ample opportunities for more exploitation of cane and bamboo resources. At present, solely -owned or joint-venture investments are permitted to produce semi and full manufactures. Timber exploitation has been undertaken solely by Myanmar Timber Enterprise but investors can negotiate with Myanmar Timber Enterprise to extract it on a contractual basis.
(d) Mining
Myanmar's mineral resources are greatly under-utilized. All mining activities are administered by the Ministry of Mines. It encourages joint ventures between its enterprises and foreign investors to explore, develop and exploit these resources and also for the increased production of copper, gold, lead, zinc, iron and steel, dimensional granite and marble, etc. As of January 2005 , 57 foreign enterprises are allowed in this sector. Apart from these minerals, Myanmar is abundant with various gems such as ruby, jade, sapphire, etc. Myanmar Gems enterprise under the Ministry of Mines is looking for foreign joint-venture partners in setting up gem cutting, polishing and manufacturing technology. Myanmar Gems Enterprise will contribute in the form of raw gems. Participation in mining activities can be through production sharing or profit sharing.
(e) Energy
The Myanmar Oil and Gas Enterprise (MOGE) is solely responsible for the exploration, development, production and transportation of crude oil and natural gas in the country. Since 1971, it has also undertaken offshore operations. Since 1989, Myanmar has invited foreign oil companies to invest in exploration and exploitation of oil and gas on mutually beneficial terms. Natural gas production was 371062.10 million cubic feet in 2005. At Present, there are 14 foreign based companies projects. Other investors are also welcomed. Foreign Companies of Total and Unocal has drilled a number of appraisal wells in blocks M5 and M6 in the Gulf of Mottama, resulting in the discovery and development of the Yadanar gas field. Natural gas from this field is being exported to Thailand with a submarine pipeline. Another pipeline is being planned to Yangon to supply gas for domestic usage. Moreover, Premier Petroleum Myanmar Limited discovered Yetagun Natural Gas Field in Taninthayi offshore Blocks M-12, M 13 and M-14. The efforts of the Operator PPML, satellite fields were discovered in Blocks M-12, M-13 and M-14 and the total certified proven reserve amounts to 3.2TCF. As Yetagun Natural Gas is a Wet Gas, the proven condensate reserve was 84.6 MMBBL. Apart from the offshore projects, Myanmar has 14 oil and gas bearing Sedimentary Basins in onshore area. Thewe Sedimentary Basins are Hukang Basin, Chindwin Basin, Shwebo-Monywa Basin, Central Basin, Pyay Embayment, Ayeyarwady Delta Basin, Bago Yoma Basin, Sittaung Valley Basin, Mepale Basin, Mawlamyine Basin, Namyau Basin, Hsipaw-Lashio Basin, Kalaw Basin, Rakhine Coastal Basin. Out of these 14 Sedimentary Basins, Only 3 Basins, namely Central Myanmar Basin, Pyay Embayment and Ayeyarwady Basin have been thoroughly explored and produced. Other 11 Basins have limited exploration activity and needs more exploration activities in order to exploit its resources.
(f) Manufacturing
In the manufacturing sector, six Myanma Industries under the Ministry of Industry (1) are responsible for production of goods such as textiles and garments, foodstuff and beverages, pharmaceuticals, soap and toilet goods, enamel wares, aluminum wares and steel products, cement, marble and porcelain wares, rubber goods leather packing materials, pulp, paper, paints, jute carpets and many others. Labour intensive industries such as textile factories, shoe factories, electrical components factories are being encouraged under the Foreign Investment Law and Myanmar Citizen's Investment Law. Moreover, Small and Medium Enterprise ( SMEs)are being encouraged for Further industrial development of the country. Hence, Foreign Investors are welcome to make investment in Labour intensive SMEs projects. In order to enhance the manufacturing sector, the government has set up industrial zones where incentives and facilities are provided for the development to private industries. At the end of 2004, there were 19 Industrial Zones and 8463 factories in the states and divisions. The total investment in the industrial zones reached 300,000 million Kyats.
(g) Transportation
Since Myanmar products are mainly exported by the ships, at present, Myanmar has sufficient facilities for the shipments .Yangon is the main International Port, handling 90% of the cargo being carried. Thilawa ,the name of the latest International Terminal ,was opened in 1996. The port now handles shipping cargos. Conventional break-bulk cargo , containerization and services are the main functions of the port. The number of jetties increased from 15 in 1988 to 32 in 2006, an increase of 17 jetties. There was only one container terminal in 1988 and the number increased to five. Ports in Myanmar are run by the Myanmar Port Authority on the basis of BOT( Build, Operate and Transfer) Scheme as well as joint-ventures. There are also a number of suitable sites for the development of deep seaports.
The total number of airports increased to 73 in 2006 from 66 in 1988 showing increase of 7 airports. Moreover, renovation and upgrading of 13 airports and expansion of airstrips are being carried out.
(h) Tourism
There are invaluable access to develop the tourist industry in Myanmar. In order to promote tourism industry, the tourism development management committee had been formed to lay down guidelines for systematic co-operation and formation of hotels. In order to facilitate the visitors, construction of new hotels, motels and inns were undertaken. In 1988-89 there were (39) hotels in Myanmar with the capacity of (1,240) rooms, but in 2003, there are (563) licensed Hotels, Motels and Inns with a total room capacity of (17039) including (4520)rooms of (27) foreign investment hotels. Myanmar is a cultural destination with its cultural heritage and is also blessed with natural environment. Myanmar is endowed with natural favourable conditions for the development of tourism industry, there are also tourist attractions of ancient cities like Mrauk-u, Bagan, Innwa , traditional culture of national races such as Padaung, Kachin, Lahu ; vast and beautiful beaches such as Ngapali, Chaungtha, Ngwesaung and snow-capped mountains in Putao, archipelagos such as the Myeik archipelagos with abundant coral reefs and marine life for natural lakes such as Inlay and Indawgyi. Recently, special arrangements for package tours are being permitted to view a gigantic jade boulder weighing over 2000, tons at Phakant which is in Northern Myanmar. Although Myanmar is endowed with favourable conditions for the development of tourism, some news agencies from the West have been broadcasting and fabricating news regarding Myanmar as propaganda, with the intention of preventing tourists from visiting Myanmar. This has disrupted the development of the tourism industry.
(i) Banking
To develop the banking and finance industry, the Central Bank of Myanmar has issued banking licenses to twenty domestic banks to operate domestic banking services. Altogether twenty two foreign banks have opened representative offices in Yangon.
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