The Government of the Republic of the Union of Myanmar is inviting investors to the country to utilize the present business opportunities and is also trying to create a more investor-friendly business environment which would ultimately increase the growth of the economy of Myanmar. The new Myanmar Investment Law which was applicable from 18 October 2016, is one of the concrete steps from the side of the government. The government is trying a mix of economic, political policies and other developmental activities which would empower the various sectors and would ultimately result in the diversification and growth of the economy of Myanmar.
The GDP of Myanmar is in an increasing trend, and the economy grows at an average rate of 8%, according to the Directorate of Investment and Company Administration (DICA). The government is also striving to increase the GDP share of industry and the GDP share of service industries. Along with government support, the manufacturing sector is benefitted by access to the markets of the ASEAN Economic Community as well as China and India, preferential tariff arrangements for exports Moreover, the government is developing three Special Economic Zones in Myanmar which would further allow the various companies to set up shop in the country and will also allow them to avail the multiple benefits that these SEZ's would provide.
If you want to set up a business in Myanmar, this blog provides the various business opportunities present in Myanmar, which would be profitable for you.
Key Business Opportunities in Myanmar
Myanmar’s economy is based on agriculture as the country consists of abundant fertile land and water resources. In 2015-16 a total net sown area of approximately 12 million hectares was used for agriculture, and around 25% of the GDP of the country comes from the agricultural activities of Myanmar. Due to the topography and location of the land, different kinds of crops and plants can be gown very quickly. DICA is aiming at attracting local and foreign investors, which would help transform the agricultural picture of the country.
Myanmar consists of numerous tourist attractions and also is very accessible as it can be reached both by airways and waterways or by obtaining a visa and making an overland entry. The government has made the permission acquiring process more simple, and as of May 2010, foreign business visitors do not need to make prior arrangements with any agency and can directly apply for a visa when passing through Yangon or Mandalay International Airports.
Tourism in Myanmar is also prevalent nowadays as, before 2012, much of the country was restricted for visits due to the strict military regime in the country. However, now the country is more open to tourism and foreigners in general.
3.Real Estate and Urban Solutions
Gradually, the business opportunities in Myanmar are increasing as are the educational and residential opportunities, and due to this, there is an increase in the trend of migration of people from rural to urban areas. This migration increases the need for finding better and smarter cities and better sustainable environment for both individuals and corporates in the country, creating new opportunities in the urbanization sector and the FMCG sector. It would also help in defining and the raising of new services.
The manufacturing sector has a massive scope in Myanmar. Myanmar has access to cheap labour and abundant resources, which makes it very feasible to set up a business in Myanmar. Companies set up in the country also have access to the markets of the countries member of the ASEAN community. To increase the revenue from the manufacturing sector, the country has established 14 different industrial zones in Yangon region. Apart from these industrial zones, Myanmar has also set up three SEZ to boost the opportunities in the manufacturing sector, namely Dawei SEZ, Kyaukphyu SEZ and Thilawa SEZ.
Myanmar aims to reach its goal of complete national electrification by the year 2030. The opportunities in the Myanmar power sector for the foreign and local investors are high. The country has numerous locations which are suitable for hydropower generation, wind power generation, high potential for solar energy generation and many natural gas deposits. Potentially, Myanmar has enough resources to export electricity to its neighbouring countries. The nation has plans to generate a minimum of 4422 MW by 2030, and the first step towards this goal has been taken by initiating the development of more than 80 hydropower plants which would produce a total of 48 GW.
The current focus on reaching the country goal by 2030 has led to the formation of several business opportunities which can be utilized by an entrepreneur.
The above mentioned five sectors are destined to boom, and if an entrepreneur or businessman invests in them, it is almost a guarantee that it would be one of the most profitable decisions taken till now. Myanmar is developing the necessary infrastructure and now owns the required political and economic stability, which makes setting up a company in Myanmar a beautiful option.
If after seeing the lucrative business opportunities you are looking to set up a company in Myanmar, you should avail the services of Business Setup Worldwide. BSW will take care of all your company incorporation problems so that it is very easy for you to set up a company in the country. They also provide a range of other business setup services such as tax-related services, VAT related services, etc. For any information about company formation in Myanmar – do contact us, we’d be happy to help.