Latest Trend of Myanmar’s Economy

Ms. Ei Ei Khine
Economic counsellor
Embassy of the Republic of the Union of Myanmar

Myanmar’s Economic Indicators
GDP Growth Rate
8.4

9.0

8.0

7.3

8.0

7.3

7.0
6.0

6.8

5.7

5.6

FY 2016 GDP by Sector

5.0
4.0
3.0

Services
39.5%

2.0
1.0

Agriculture
25.5%

0.0
FY2011FY2012FY2013

FY2014FY2015FY2016

Source: Ministry of Planning and Finance

FY2017(P)Industry
35.0%

Economic Section, Myanmar Embassy, Tokyo3

Trade Situation
Export by commodity
Total Trade

Agriculture17%3500030000

29156.34

20%29162.71

27714.46

5%10%

US$ in million

25000
20000
15000

16632.63
12523.71

16577.94
11136.52

18662.38

17211.07

Forestry46%

Manufacturing2%11951.64

10000

Livestock &Fishery
MineralOther

10503.34

Import by commodity

8159.04

5000

16%

0
FY2014FY2015

Exports

Imports

FY201610%FY2017(April-October)

Industry

Total Trade

74%

Source: Ministry of Commerce and Central Statistical Organization

Investment

Consumer

Economic Section, Myanmar Embassy, Tokyo4

Trade with Japan
2500

2295.372031.79

US$ in Million

2000

1845.971738.94

Export to Japan

Import from Japan

Garment

Transport Equipment

Footwear

Machinery and MechanicalAppliance

PulsesBase Metals andManufactures

Prawn

Electrical Machinery andApparatus

Sesame seeds

Fabrics of Artificial and
Synthetic Fabrics

1452.221500

1247.531000

1089.56784.26556.43500

563.86525.7

393.750
FY2014

Export to Japan

FY2015

Import from Japan

Source: Central Statistical Organization

FY2016FY2017(April-October)

Total trade with Japan

Economic Section, Myanmar Embassy, Tokyo

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Foreign Direct Investment in Myanmar (As of 31-1-2018)
80000

70368
63719

70000

54237

US$ in Million

60000

50000

Livestock &Fisheries,
0.77%

75275

Hotel andTourism,
3.99%

46227

42120

40000

Mining ,3.85%

Real Estate,
6.44%

30000
20000

Transport &Communication,
11.76%

10000
0FY2012FY2013

FY2014FY2015FY2016

Other Services,
2.29%

Oil and Gas ,29.77%FY2017(end ofJanuary 2018)

25000

Manufacturing,
12.41%

19930.08
20000

Power, 27.84%

15000

10000

790.3
5000

CanadaIndonesia

U.S.A

FranceIndia

Japan

The Netherlands

Malaysia

Viet Nam

Republic of Korea

U.K *Hong Kong

ThailandSingapore

0ChinaUS$ in Million

Construction,
0.05%

Industrial
Estate,Agriculture, 0.32%
0.51%

Source: Directorate of Investment and Company Administration

Economic Section, Myanmar Embassy, Tokyo6Japanese Investment in Myanmar (As of 31-1-2018)790.30800.00694.18631.53700.00

US $ in million

600.00500.00411.73300.00Power Others Services
15%
0.5%

325.99400.00270.28Fisheries Sector
2%

Transport andTelecommunicati
on8%

216.22200.00100.00

Manufacturing
Sector52%

Real Estate5%0.00
FY2011FY2012FY2013

FY2014FY2015FY2016FY2017 (end ofJanuary 2018)

Hotels andTourism Sector
10%

Oil and Gas
Sector5%
Source: Directorate of Investment and Company AdministrationAgriculture
Sector3%

Economic Section, Myanmar Embassy, Tokyo

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Investment in Thilawa SEZ( As of 31-1-2018)
Total investment US$ 1235.34 million

Investment By Sector

Investment by top 6 countries

US$ in million

600.0

Services
5%

558.8

500.0

Trading
11%

400.0

Logistics
6%

Real Estate
2%

Hotel
1%

Manufacturing
75%

300.0
200.0

149.2

121.4

108.0

100.0

63.1

59.0

TaiwanUSA

0.0

Japan

ThailandSource: Thilawa SEZ Management Committee

Korea

Malaysia

Economic Section, Myanmar Embassy, Tokyo8Legal Framework
Special Economic Zone Law (2014)
Myanmar Investment Law (2016)
Myanmar Company Law (2017)
Economic Section, Myanmar Embassy, Tokyo

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Pioneer SEZs: Special Economic Zones in Myanmar

3 Pioneer SEZs
namely;- Dawei SEZ- Kyauk Phyu SEZ-Thilawa SEZ

Economic Section, Myanmar Embassy, Tokyo

10Subject
Corporatetax

Import tax
exemption

Investment in SEZFree Zone

Promotion Zone

Tax exemption

7 years

5 years

50% tax relief

5 years

5 years

50% tax relief forreinvestment

5 years

5 years

Import of construction
materials, machinery,equipment

Exempted

5 years exempted +5 years (50% relief)

Import of raw material

Exempted

Export portion isrefundable
Economic Section, Myanmar Embassy, Tokyo11

Land Use in SEZ
Initial+Extension

Year50Year

25TotalYear

75

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Economic Section, Myanmar Embassy, Tokyo

13

Initial+Extension (10 Year 2 Times)

Year50Year

20TotalYear

70

Economic Section, Myanmar Embassy, Tokyo

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National
Treatment andMost Favored
NationTreatment

Fair &Equitable
Treatment

Right toEmploy
Expatriates

Investment
Guarantee

Transfer ofFunds

Economic Section, Myanmar Embassy, Tokyo

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Agricultureand its relatedservices(except
cultivation andproduction oftobacco andVirginia)

Plantation andconservationof forest, andotherbusinesses
with forest

Livestockproduction,
breeding andproduction offishery products,
and its
related services

Manufacturing(Except
manufacturingof cigarette,liqueur, beer,
and other

Establishmentof Industrial
Zones

harmful
products tohealth)Economic Section, Myanmar Embassy, Tokyo

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Establishmentof New Urban
AreasCity
Development
Activities

Constructionof Road,Bridge andRailway Line

Constructionof Seaport,
River Port andDry Port

Management,
Operation andMaintenanceof Airport

Economic Section, Myanmar Embassy, Tokyo

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Maintenanceof Aircrafts

Supply andTransportServices

Power
Generation,Transmission
andDistribution

Production ofRenewable
EnergyTelecommunication
Businesses

Economic Section, Myanmar Embassy, Tokyo

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Education
Services

HealthServices

Information
Technology
Services

Hotel andTourism

ScienceResearch
Development
Business

Economic Section, Myanmar Embassy, Tokyo

19

Zone 1: Less Developed Zone
Total: 166 Townships
in 13 States
and Regions
except Yangon andNay Pyi Taw Union Terriority
States (98 Townships)
Kachin (14), Kayah (7), Kayin (7), Chin (9),Mon (2), Rakhine (17), Shan (42)
Regions (68 Townships)
Sagaing (34), Tanintharyi (4), Bago (5),Magwe (13), Mandalay (2), Ayeyarwady (10)Economic Section, Myanmar Embassy, Tokyo20

Zone 2: Moderate Developed Zone
Total: 122 Townships
in 3 States, 7 Regions andNay Pyi Taw Union Terriority
States (26 Townships)
Kachin (4), Mon (8) and Shan (14)Regions (88 Townships)
Sagaing (3), Tanintharyi (7), Bago (23),Magwe (12), Mandalay (13),Yangon (13), Ayeyarwady (17)Nay Pyi Taw Union Terriority (8 Townships)
Economic Section, Myanmar Embassy, Tokyo21

Zone 3: DevelopedRegions

Total: 46
Townships
in 2 Regions
14 townships in Mandalay
Region32 townships in Yangon
RegionEconomic Section, Myanmar Embassy, Tokyo

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Exemptions or reliefs

SubjectCustoms Duty or otherinternal taxes or both

Import of construction materials, machineries, equipments,instruments , machinery components, spare parts, materials
used for business
Import of raw materials and partially manufactured goods forexport oriented business
Import of raw materials for export products

Income tax

Reinvestment
Right to deduct the depreciation

Right to deduct the expense for research and developmentInvestors have Right to pay the income tax rate same as thecitizens
Economic Section, Myanmar Embassy, Tokyo23

For Issuance ofEndorsement Order

MyanmarInvestment
Commission(MIC)

Investment
Capital Amountup toUSD 5 Million
or MMK 6Billion

State andRegional
Investment
Committees

Economic Section, Myanmar Embassy, Tokyo

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Myanmar Company Law (2017)

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

Allowing foreign investors to hold up to 35 % of sharesin local firms

Allowing companies with a single shareholder and single
director to be establishedReplacing MOA and AOA into a single document called
a company constitutionProviding tools to shareholders and stakeholders to create
better corporate governance and greater transparency

Using a new electronic registry system

Economic Section, Myanmar Embassy, Tokyo27

Market Seeking Investment: Strategic Location

Resource based Investment: Human Resource Endowment
Population :51.4 Million (2014)
Age between 15-65 year old :65.6%
Adult Literacy rate: 89.6%

Lowest Minimum Wages inASEAN
Economic Section, Myanmar Embassy, Tokyo

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Resource based investment: Rich Natural ResourcesGold PearlJade
Economic Section, Myanmar Embassy, Tokyo30

Infrastructure Investment
Target : 2020 Reliable Electricity
Investment Opportunities;
Power Generation, Transmission andDistribution, Renewable Energy
Development of Private Sector inPower Generation

Electricity Demand Forecast
7000
5,727

6000

MW

5000
4000

Current Production
3,189

4,531

100%

40%

2000

20%

1000

0%

88.0%

FY2011

0FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022

16.0%

24.9%

35.9%

45.4%

48.4%

54.6%

51.6%

FY2015FY2016

60%

3,192

3000

12.0%

80%

84.0%

FY2012

75.1%

64.1%

FY2013

State Own

FY2014JV, IPP & Other

Economic Section, Myanmar Embassy, Tokyo

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Infrastructure Investment (Cont;)

Establishment ofIndustrial Zone

Establishment ofNew Urban Areas

City Development
Activities

Maintenance ofAircrafts

Construction ofRoad, Bridge andRailway Line

Construction ofSeaport, River Portand Dry Port

Telecommunication
Businesses

Management, Operationand Maintenance of
AirportSupply andTransport Services
Economic Section, Myanmar Embassy, Tokyo

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You have little space toadd materials

You have enough space to add
many materials
Economic Section, Myanmar Embassy, Tokyo

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Economic Section, Myanmar Embassy, Tokyo34

http://www.myanmar-embassy-tokyo.net/eco2017/

Economic Section, Myanmar Embassy, Tokyo35