Home » Breaking News, Customs & Trade » Frost & Sullivan identifies best investment strategies in Myanmar

Companies wanting to invest in Myanmar have more chances of success if they choose to form joint ventures or partnerships with local players or state-owned enterprises, advised an executive from Frost & Sullivan.

“This is the best way to leverage local capabilities and to minimize risks of uncertainties,” said Dr. Monsinee Keeratikrainon, Thailand country manager of the research and consulting firm.

He added: “Also it gives a short-cut and quick win while having access to current know-hows and business networks.”

He said that although it might take time initially, finding local partners has proven to be one of the smartest moves adopted even by large firms. “The big-entry-big-funding model may give more visibility but also take more time and risk.”

Frost & Sullivan said many businesses from almost all industry sectors are seeking opportunities to either invest in or expand to Myanmar following its move toward a more liberal investment climate.

Monsinee identified four key issues to consider in making the decision to invest in Myanmar. These are:

  • Land availability. Current leasing space available in Yangon does not match the demand, causing prices to go up.
  • Basic infrastructure. There are problems in basic infrastructure, such as in the quality of roads and the supply of electricity. Access to broadband is also very limited and unreliable.
  • Manpower. Although the Myanmar population has a high literacy rate (more than 90 percent), more than a third has lower than primary school education. Businesses will have to face problems in skill and manpower shortages.
  • Regulation uncertainties. While the new foreign investment law is expected to be passed within the next month, there are still many economic-related legislations not yet passed or drafted, resulting in uncertainties.

Monsinee said most foreign investments in Myanmar come from China and Hong Kong, followed by Thailand and South Korea. Around 80 percent of these foreign investments go to power, energy, oil, and gas.


Photo: eGuide

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